Passed important certification! Temu's overseas expansion has taken another step forward

According to the Federal Taxation Agency's website on Monday, Temu has been certified under a Brazilian government tax incentive program called "Remessa Conforme," which is also an advantage for most cross-border retailers in Brazil.

Once the application is approved, Temu will be allowed to send goods worth less than $50 to Brazil without having to pay a 60% import tax.

Temu has not responded to this matter. However, according to foreign media reports, the Temu Brazil website stated that Temu will "soon" provide services in South American countries and detailed the shopping process that complies with regulations.

In fact, news came out last week that in order to accelerate market expansion and enhance the platform's global competitiveness, Temu submitted an application for certification of the Remessa Conforme program to the Brazilian Federal Tax Bureau in March this year.

Although no official timeline has been given, some media have speculated that it may take 60 to 120 days based on the average time it takes to process applications. At the same time, Temu representatives have been communicating with Brazilian technology companies to speed up the integration of Temu's system and the local platform that is about to be built.

Currently, the Temu App can be downloaded in Brazil, but it cannot be purchased yet. According to foreign media, the Temu App has received more than 3 million reviews. In addition, according to the records of the Brazilian Tax Bureau, the carrier cooperating with Temu will be J&T Express Brazil, and cooperation with other logistics operators is still under negotiation.

The arrival of Temu is expected to bring pressure to the local Brazilian market. Some Brazilian industry insiders speculate that Temu is fully capable of subverting the mature cross-border e-commerce platforms that already have a stable customer base in Brazil, and will also use advanced language capabilities and marketing technology to innovate.

A report released by Santander Bank also pointed out that given that Temu will invest heavily in publicity and seize market share, sales competition in Brazil is expected to become more intense. However, the entry of Temu may bring greater impact to local free markets and traditional industry companies. In order to resist the impact, some companies are currently taking more rational and conservative strategic measures.

It is worth mentioning that Temu’s recent move coincides with the push by local stores and industries in Brazil to restore import tariffs. On May 14 (last Tuesday), local time, Brazilian industry associations, business groups and union leaders published a manifesto in the media criticizing the lack of tax equality between foreign online platforms and local companies.

At the same time, a press conference was held to advocate the approval of the report of Brazilian Congressman Átila Lira to "end the exemption of import tax on goods below US$50." It is reported that relevant organizations have been pressuring the government to end the tax exemption policy since last year.

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