Temu moves closer to Brazil debut after securing tax benefit from government
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Chinese e-commerce retailer Temu has been certified for a tax benefit program by Brazil’s government that exempts goods up to $50 from import fees, according to the country’s federal revenue office’s website on Monday, bringing the company closer to expanding its business to Latin America’s largest economy.
Why it’s important
Inclusion in Brazil’s tax exemption program “Remessa Conforme” is an advantage most cross-border retailers have in the country. Local media have reported Temu has been preparing the groundwork to enter Brazilian markets for a few months, although little detail is known so far.
Context
Temu is a popular shopping app from China’s Pinduoduo. Its rivals Shein, from China, and Shopee, owned by Singapore’s Sea, are already huge online shopping platforms in Brazil.
The response
Temu did not immediately respond to a Reuters request for comment. Its Brazilian website address said on Monday that Temu’s services should be available “soon” in the South American country.
Questions & Answers
Q.What specific tax benefit has Temu secured from the Brazilian government?
What specific tax benefit has Temu secured from the Brazilian government?
Temu has been certified for a tax exemption program called 'Remessa Conforme'. This allows goods valued up to $50 to be imported into Brazil without incurring import fees, providing a competitive advantage for the retailer.
Q.Which other e-commerce companies already operate in Brazil and compete with Temu?
Which other e-commerce companies already operate in Brazil and compete with Temu?
Temu will face competition from other well-established cross-border retailers in Brazil. Shein, also from China, and Shopee, owned by Singapore’s Sea, are already significant online shopping platforms in the country.
Q.What is the current status of Temu's launch in Brazil, according to its own website?
What is the current status of Temu's launch in Brazil, according to its own website?
According to Temu's Brazilian website address on Monday, its services are expected to become available 'soon' in the South American country. The company has been preparing for market entry for a few months.
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