Translator：Zhang Xiaotong

On October 12, 2023, Senior Partner Lawyer Yunqing Wang of Shanghai Landing Law Offices was invited to participate in a live dialogue event hosted by ShineGlobal, a well-known global market industry think tank and content service platform, and Early Outbound Live Studio. The live session, part of the "Shine Talk" series, focused on the theme of "New Blue Ocean of Cross-Border E-Commerce in Latin America." The event was hosted by Ms. Chenruo Zhang, Founder of Early Outbound, and featured guest speakers Bill Chen, China Merchandising and Operations Manager of Meckduo, and Mr. Keqiang Yu, Director of the Strategic Department at Anjun Logistics.

The live dialogue, recommended on the homepage of The Paper (Pengpai News), garnered nearly 20,000 views collectively on The Paper and ShineGlobal platforms.

During the live dialogue, the three guests provided insights into the current market conditions in popular Latin American countries, the tax reforms in Brazil, localized logistics and warehousing, and the legal, especially tax-related, risks associated with factors like law and social culture. These are the concerns of Chinese cross-border e-commerce sellers, and the guests approached these issues from the perspectives of platforms, logistics, and law, especially tax law.

Bill Chen from Meckduo highlighted the current market conditions in popular Latin American countries. He pointed out that the overall market size is considerable, with mature cross-border e-commerce markets in Mexico, Brazil, Chile, Colombia, and Argentina. While other regions have relatively lower shares in online retail markets, the entire region experiences significantly higher e-commerce growth rates compared to other areas, presenting substantial market development potential. Additionally, according to platform data, although there are fewer Chinese brands in Latin America, Chinese products, especially in categories such as 3C electronics, home, fashion, and auto parts, enjoy significant popularity.

Mr. Yu, from Anjun Logistics, emphasized the connection between logistics and e-commerce, using Brazil as an example. He explained how the overall layout of Chinese logistics enterprises has improved local logistics efficiency and furthered the development of e-commerce in Brazil. Mr. Yu also addressed the issue of tax reform in Brazil, noting that parcels with a declared value below $50 are exempt from customs duties but are subject to a 17% ICMS state turnover tax. While this may temporarily increase the prices of cross-border e-commerce goods and impact competitiveness, it aligns with the consistent taxation of local goods in the long run, facilitating standardized operations in the region. Mr. Yu also mentioned that after the tax reform in Brazil, goods that originally required clearance and delivery through Brazil Post can now undergo commercial clearance and direct business delivery.

Leveraging her Spanish language background and extensive experience in the Latin American market, Lawyer Wang provided a comprehensive overview of the characteristics of the Latin American market, the specific impact of the Brazilian tax reform, common legal risks in cross-border e-commerce, and the influence of local social and cultural factors. Lawyer Wang emphasized the significant cultural and legal differences among Latin American countries due to variations in political and economic openness, particularly in terms of customs policies and participation in free trade agreements. She explained the starting point for import taxes in Brazil, clarifying that the "50 US dollars" include the customs value of the product, shipping costs, and insurance. Lawyer Wang elucidated the key focus of the Brazilian tax reform: the Compliance Submission Program (Programa Remessa Conforme, abbreviated as PRC). Only businesses that register with the e-commerce platform and obtain this qualification can enjoy import benefits. However, they still need to submit the corresponding submission import declaration (Declaração de Importação de Remessa, abbreviated as DIR) before the goods arrive at the port to receive a series of benefits, including expedited customs clearance and reduced inspection rates. Lawyer Wang also addressed topics such as the establishment of manufacturing plants in Mexico and the US-Mexico-Canada Agreement, providing insights into the benefits and impacts of supply chain relocation, differences in tariff costs, and the advantages and disadvantages of the processing trade model.

The live dialogue attracted active participation from many online viewers who asked questions and provided comments. The session concluded successfully with lively discussions among the guest speakers.