Brazilian imports of “made-in-China” products up to USD 50 saw 38% surge in one year

Brazilian imports of made-in-China products up to $50 have grown by 38% over the course of this year, totaling approximately 1.3 billion units. This data was revealed in a study published on Friday, the 25th, by the National Confederation of Commerce of Goods, Services, and Tourism (CNC).

The CNC’s survey analyzed import data for 10,000 types of consumer goods from 145 countries, broken down by the Common Nomenclature of Mercosur (NCM) and provided by the Ministry of Development, Industry, Commerce, and Services’ Secretariat of Foreign Trade.

From January to July 2023, the quantity of imported goods valued at up to $50 per unit increased by 11.4% compared to the same period last year.

Shipments from Uruguay (an increase of 46.7%), China (a growth of 38%), Vietnam (a rise of 31.5%), Paraguay (21.2%), and the United States (10.8%) led the ranking. China, Argentina, and Paraguay were the main exporters of low-value consumer goods, accounting for 59% of the total imported.

Products that showed the highest increases in imported quantities during the first seven months of this year were mechanical pencils (220%), toys (195%), umbrellas (172%), lamps (111%), and women’s shirts (67%).

According to the CNC, the appreciation of the Brazilian real, coupled with high internal taxes, encouraged imports, reducing the competitiveness of domestic products.

“The current situation has only reinforced the trend of increasing imports, especially from Asian countries,” stated José Roberto Tadros, the president of the confederation. He added that over the last 20 years, imports of consumer goods from China with an average value of $50 have grown by 575%, compared to an average of 155% in other countries.

The growth in imports prompted the CNC to launch the “Fair Trade” campaign, which advocates for tax parity in the imports of low-value consumer goods.

“The difference in consumption tax rates between Brazil and abroad played a key role in the increase of imports,” said economist Fabio Bentes, responsible for the study. He emphasized that tax parity is crucial in this context, and “the disparity creates a situation of competitive inequality for traders based in Brazil.”

Tax burden

Last week, the Retail Development Institute (IDV), in partnership with the Brazilian Institute of Planning and Taxation (IBPT), released a study showing that the real tax burden on products sold in Brazil ranged from 67.95% to 142.98%, depending on the segment.

These rates represent the sum of taxes paid at various stages, from production to distribution and sales. A total of ten segments were analyzed: accessories, food, beauty products, toys, electronics, appliances, pharmacy, construction materials, pet products, and clothing/footwear. Among these segments, food has the lowest tax burden, while electronics have the highest.

The study’s goal, which will be brought to the Ministry of Finances’ attention, is to demonstrate the weight of taxes for Brazilian entrepreneurs and the impact of the exemption from Import Tax on international purchases of up to $50, which, according to the IDV, leads to imbalance.

“The reduction of import tax to zero is causing serious damage to the country’s economy, both for domestic industry and for retail and distribution,” said IDV president Jorge Gonçalves Filho. “We want to demonstrate the current reality in the country in terms of tax burdens.” In this way, we can provide information to the government in order to change the zero import rate. It is not a matter of defending the national industry or retail but of achieving parity.

Source: Mercado e Consumo

To read the original news report, visit: https://mercadoeconsumo.com.br/25/08/2023/noticias-varejo/importacoes-de-produtos-chineses-de-ate-us-50-crescem-38-no-ano-diz-cnc/?cn-reloaded=1

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