Brazilian Federal Revenue Service regulates the Conformity Shipment Program (“Programa Remessa Conforme”) for e-commerce companies

On July 26th, 2023, the COANA (General Customs Administration Coordination) Ordinance n° 130/2023 was published to regulate the Conformity Shipment Program (“Programa Remessa Conforme” – PRC) for e-commerce companies.

Joining in PRC is voluntary, but, according to the Federal Revenue, it will provide faster and more economical customs treatment for e-commerce companies.

It is worth mentioning that the PRC exempts federal taxes on the importation of products acquired in international purchases up to USD 50.00, including in the case of sales made by legal entities to individuals (previously, the exemption was only applicable in the case of sales between individuals).

Brazilian retailers are against the application of zero-rate federal import taxes for goods up to USD 50.00, arguing that this exemption gives imported products better market conditions than those offered to domestic ones – which, in terms of Brazilian taxation, is true.

Below are the main aspects of COANA Ordinance n° 130/2023:

• Program Beneficiary: e-commerce companies, both domestic and foreign, that demonstrate compliance with the criteria required by the PRC and are certified according to the terms of the Ordinance.
  
• Program Benefits:
  • exemption of the tax rate on the customs duty applied to purchases of imported goods up to USD 50.00 if the purchase was made by an individual in Brazil;
    
  • early selection of the Import Declaration for the conference channel (green, yellow or red);
    
  • priority processing of customs clearance; 
    
  • permission for the company to use the “Programa Remessa Conforme” logo;
    
  • disclosure of the certified company’s name on the Federal Revenue website;
    
  • designation of a Federal Revenue official responsible for communication.
    
• Eligibility Criteria:
  • Brazilian companies: registration with CNPJ (National Registry of Legal Entities) and adherence to the Electronic Tax Domicile (DTE).
    
  • foreign companies: essentially, having a representative in Brazil, which can be either an individual or a legal entity.
    
• Certification criteria:
  • the sender must have a signed contract with the Postal Service (“Empresa Brasileira de Correios e Telégrafos” in Brazil) or courier company, which includes an obligation to (i) provide the necessary information for the early registration of the Import Declaration of Remittance (“Declaração de Importação de Remessa – DIR”) before the arrival of the shipment carrier in the country and to (ii) send the tax amounts charged from the recipient to the responsible party for registering the DIR in the Siscomex Remessa program;
    
  • the website that offers the product must explicitly show the following:
    • information indicating that the product originates from abroad and will be subject to federal and state taxation; and
    • merchandise cost, international freight, insurance, postal fee, other expenses, customs duty, tax on the distribution of goods and services (equivalent to sales tax), and total amount to be paid. All these items must be listed separately with the respective values to be paid.
      
  • the sender label that accompanies the merchandise must highlight the company’s brand and trade name;
    
  • the sender must commit to comply with tax and customs and to combat smuggling, contraband and counterfeiting;
    
  • the sender must maintain a policy for hiring and monitoring the company’s registered sellers.

If the application is approved, the certification will be granted with an indefinite validity period through an Administrative Decision (ADE) published in the Federal Register (DOU). The certification will be subject to review every 3 years, and the certified company is responsible for maintaining compliance with the criteria established in the Ordinance.

Click here to access the full text of COANA Ordinance n° 130/2023.

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