The Brazilian government announced on the 12th the cancellation of the so-called "Blusinhas Tax" (taxa das blusinhas). Coined by Brazilians, the term refers to the 20% import duty levied on international online purchases valued under 50 US dollars, enforced under Brazil’s Remessa Conforme (Import Compliance Program). The new measure will take official effect on May 13 via a provisional presidential decree signed by President Lula.

Miriam Belchior, Minister of the Presidential Office of Brazil, stated:

“I am pleased to announce that the widely discussed Blusinhas Tax has been abolished. Starting today, individuals purchasing goods worth under 50 US dollars via cross-border e-commerce platforms will no longer pay federal import duties.”

Background and Fiscal Impact

The tax was first introduced in August 2024, after Brazil’s National Congress passed the relevant import taxation bill, which was then signed into law by President Lula. The policy emerged amid explosive growth in Brazil’s cross-border online shopping during the pandemic, alongside a notable tax burden gap between locally made goods and products sold on international e-commerce platforms. Domestic enterprises in favor of the tax argued it leveled the playing field for fair competition between Brazilian and imported goods.

The Blusinhas Tax also became a significant source of government fiscal revenue. Official data shows that Brazil’s Federal Revenue Service collected 5 billion Brazilian reals from the tax in 2025, hitting an all-time high. In the first four months of 2026 alone, revenue from import duties on low-value cross-border parcels reached 1.78 billion reals, up 25% year-on-year.

Prior to August 2024, items under 50 US dollars were exempt from federal import duties under the Remessa Conforme program, before the 20% levy was imposed. Additionally, ten Brazilian states raised their ICMS (state value-added tax) rate on such cross-border goods to 20%, with the increase already taking effect last April.

Conflicts and Controversy Between Consumers and Local Industries

Though Lula signed the original bill, he publicly described the measure as “irrational”. Whether to repeal the tax has long been a heated topic within government circles. Brazilian consumers widely opposed the levy, arguing it inflated prices for affordable goods and reduced the appeal of international shopping platforms. Critics also pointed out that Brazilian travelers purchasing goods overseas faced no equivalent tax, creating unfair disparities.

Nevertheless, the taxation policy received broad backing from Brazil’s industrial sector. Geraldo Alckmin, Brazil’s Vice President and Minister of Development, publicly supported retaining the tax to protect the country’s domestic manufacturing industry. Overall, the Blusinhas Tax remained highly controversial throughout its implementation.

Policy Implications and Logistics Outlook

The new policy is expected to apply to goods circulating normally under the Remessa Conforme framework, while ICMS will still be charged in accordance with current standard rates. It remains unclear whether the tax exemption will also apply to individual private parcels; further official updates are pending.

Amid Brazil’s booming cross-border market, formal and compliant logistics channels have become increasingly critical, enabling faster, smoother cargo circulation and helping businesses adapt to policy shifts.

Brazil Special Line, launched by Qingdao Zhongjin Freight, is a dedicated parcel logistics route from China to Brazil. Fully registered under Brazil’s import compliance program, it maintains in-depth cooperation with platforms including Amazon. The service boasts high delivery success rates, fast transit times, nationwide coverage across Brazil, and customized express lines for different product categories to streamline bilateral trade.

Bilateral Trade Impact Between China and Brazil

From a China–Brazil trade perspective, scrapping the Blusinhas Tax will immediately lower the price threshold for China’s mid- and low-end cross-border exports to Brazil, boosting the competitiveness of Chinese light industrial goods, consumer electronics, and fast-moving consumer products in the Brazilian market.

However, Brazil’s domestic manufacturing sector will face intensified external competition, and certain industries may pressure the government to reinstate the tax in the future. In the long run, frequent adjustments to Brazil’s tax policies heighten uncertainty for cross-border traders. Chinese exporters are advised to closely monitor policy trends following Brazil’s general election and flexibly adjust pricing and logistics strategies accordingly.