"After the Implementation of the New Tax Policy in China, the cross-border e-commerce market in Brazil has undergone earth-shaking changes, profoundly affecting sellers, platforms, and logistics providers, changing the operation mode of multiple links such as declaration, customs clearance, routes, and end delivery. Overall, the changes brought to sellers, platforms, and logistics providers by the new tax policy in China can be summarized with two key words: iteration and compliance. From iteration to compliance, it can be said to be the theme throughout the implementation of the new policy.

Impact on Sellers and Platforms:

For sellers and e-commerce platforms, in terms of market operations, strategies, or tax compliance, they need to move closer to the direction required by government policies. Not only do services need to be iterated, but also the mindset needs to be iterated.

At the tax level, the most direct impact of the new policy in China on sellers is the need to pay more taxes. Imported goods need to pay a unified 17% ICMS circulation tax, and goods priced below $50 continue to enjoy tax-free benefits, but goods priced above $50 are subject to an additional 60% import tax.

The 17% circulation tax has increased the tax costs for sellers and e-commerce platforms. However, in the long run, the new policy brings greater benefits to sellers who truly want to do e-commerce in Brazil. The 17% tax rate has reached a consensus from all parties and is set and will not change. The price difference between China and Brazil in light industrial products, daily necessities, and daily consumer goods is very large, reaching 30%, 50%, and even 1-3 times for some electronic products, electromechanical products, new energy products, and drones. The price difference can fully cover the 17% tax cost. Even with the addition of the 17% tax, Chinese e-commerce products still have a huge price advantage, and this tax cost is ultimately transferred to consumers, which is still profitable for sellers.

In terms of compliance, after the new policy, sellers and platforms need to change their previous mentality of underreporting. Under the new policy, Brazil implements a three-check policy: logistics orders and payment orders must be filed on the platform, and transaction orders must also be registered on the platform when applying for the new policy. This policy follows the Chinese model, strengthens supervision on compliant declarations, and, with the rapid development of cross-border e-commerce, has become a measure that the Brazilian tax authorities have to take, but compared to China, the Brazilian tax authorities' system technology is not up to the current demand. So, the current new policy is still in a transition period. When the system is built, after the transition is complete, all data will be very clear and can play its due role.

Compliance is the only way for e-commerce. Brazil has always been very strict in the field of cross-border imports and continues to increase regulatory efforts. For example, in terms of ports, Brazil's ports are jointly supervised by six government departments, and some non-compliant methods are simply difficult to sustain. The government's port policy is very tough, once illegal behavior is identified, it will be investigated. Therefore, doing e-commerce in Brazil requires compliance, and tax reform also makes the entire business model more in line with tax requirements, making the industry more standardized and healthier.

In addition, sellers don't necessarily have to be limited to cross-border; they can also choose to open a local company and set up an overseas warehouse locally. In the past, the overseas warehouse model was not feasible in Brazil, but now it can highlight its advantages. Cross-border e-commerce goods are subject to a 17% tax rate based on the selling price, while the price of B2B imported goods is based on the CIF price (cost, insurance, and freight) for taxation, and there is a big difference between these two. After B2B imported goods are taxed, they can be sold on all platforms across the network, making overseas warehousing more imaginative.

However, it should be noted that doing overseas warehousing locally requires a complete capital flow, and companies in Brazil also need to have legal entities. There are many compliance items related to overseas warehousing, and there are also many pitfalls. It is best to understand clearly before making arrangements.

Impact on Logistics Providers:

For logistics providers, the new policy has brought about some new changes in addition to tax channels.

First, in terms of cross-border customs clearance, the tax policy has broken the previous definition of cross-border postal customs clearance policy. Previously, cross-border parcels were delivered and cleared by the postal service, and now they can be delivered and cleared commercially. Since commercial express delivery has lower prices, logistics providers have gained a greater market advantage, and sellers have further reduced logistics costs.

However, because there is a lack of customs clearance sites, the cost of commercial customs clearance is high, and clearing customs at the airport requires the payment of operation fees. In the case of few sites, if the volume is too small, the cost sharing of this fee will also be high. For logistics providers, there is room for further cost reduction and efficiency improvement in the inbound customs clearance in Brazil, which is also an opportunity.

Second, customs clearance sites are no longer limited to Ceint warehouse in Curitiba. Now, any customs-supervised express center in Brazil can carry out customs clearance, which is open to both commercial express and postal parcels. Previously, all cross-border imported parcels had to be sent to the Ceint warehouse in Curitiba for customs clearance. The round trip required renting cars and renting bonded warehouses from the post office. The price was high, and the deployment speed was slow. Now, PRC-imported goods can be cleared and diverted, and the parcel can be sent to the nearest sorting center from where the plane lands. After clearing customs, it can be transported in just six or seven hours.

Third, the logistics agency model may become less common after the new policy. The biggest value of the agency lies in the convenience under the information asymmetry environment, and now the new policy further transparentizes all links, and the survival space for agents and intermediaries will be less and more difficult, because the platform has filed which logistics providers, and the information can be checked online. At the same time, after removing the cost of intermediaries, it is also beneficial for sellers and platforms.

Fourth, the new policy has also opened up new logistics models. The B2B2C inventory model that used to appear in the bonded area will gradually open up. After the goods are transported to the bonded warehouse, although the cost of warehousing is higher, the shipping and transfer speed is very fast, and in fact, this cost can be ignored. After B2B goods are taxed, they can be sold on all platforms across the network, which makes the B2B2C model have huge cost advantages and great potential.

Whether it is feasible in practice is still under discussion. If this warehousing model can be implemented, the intermediate logistics cost of the entire transportation process can be further reduced, and products that were difficult to stock and ship directly can be made simple through this model.

Fifth, the overall improvement of prices, services, and timeliness in the logistics industry. With the rise of commercial express, forming a benign competition with postal express, the service capability of logistics in Brazil continues to improve, and the proportion of direct mail will also continue to increase, further reducing the logistics costs for sellers and platforms.

E-commerce sellers also pay attention to the price, service quality, and timeliness of logistics. The overall improvement in the capabilities of logistics providers in these areas can further encourage sellers and platforms to invest more resources in cross-border e-commerce business. For example, after the commercial express routes are established, the Brazilian local e-commerce platform Meu Mercado Livre plans to increase resources for Chinese cross-border e-commerce parcels. As an e-commerce platform targeting middle- and high-income groups, Meu Mercado Livre has also noticed the improvement in the quality of cross-border logistics in Brazil. E-commerce and logistics promote each other, forming a virtuous cycle, which can promote the entire e-commerce industry.

After the implementation of the new tax policy in China, the cross-border logistics industry in Brazil has undergone a complete iteration. Because the logistics in the Brazilian market used to be more inclined to merge and monopolize, now, e-commerce has more choices in logistics, can offset tax costs with lower logistics costs, and the channels and routes are more diverse and convenient, but overall, it is still not enough. So, in Brazil, logistics determines the development of the platform, not the platform determines the development of logistics. It is difficult for logistics companies to obtain resources because many resources in Brazil are in the hands of local oligarchs and American capital, and currently, there are not many logistics companies that control core resources.

In Conclusion:

Iteration is the most significant feature brought to the cross-border e-commerce logistics industry in Brazil after the implementation of the new tax policy in China, and compliance is also very important. In the future, it will be the trend for a long time. Whether it is sellers, platforms, or logistics providers, they must adapt to this trend.

Under the influence of the new policy, sellers, platforms, and logistics providers not only need to quickly make adjustments to cope with and improve compliance, but also need to see the difficulties and opportunities highlighted in the changes. Currently, it can be seen that there is still a lot of room for improvement in Brazil's cross-border e-commerce industry. Continuous attention to these changes is needed, both to respond to challenges in a timely manner and to see potential new opportunities."