Published 31/01/2018 - 18:27

The meeting was convened by the UNALE (National Union of State Legislators) and was attended by the Deputy Secretary of Customs and International Relations of the Brazilian Federal Revenue Ronaldo Lázaro Medina to present the guidelines for the regulation of the new law of the Borders Free Shops, as well as to receive public consultations.

ASUTIL sent and submitted by mail its public consultation as agreed at its General Assembly on December 1, 2017. Its Secretary- General José Luis Donagaray, and its president Gustavo Fagundes, also current COO DUFRY attended the meeting. Fromo DUFRY also participated Pedro Henrique Custodio, Director of Operations and Agostinho Nogueira. The Uruguayan delegation was also formed by Enrique Urioste, CEO NEUTRAL and president of the Free Shops of Uruguay Chamber of Commerce (CEFSU), CEFSU General Secretary Carlos Loaiza, Juan Campomar of DIAGEO and his adviser Jorge Enriquez and on behalf of the government of Uruguay, Gustavo Vaneiro, the Ambassador of Uruguay in Brazil. From Argentina, Francisco Heredia from LONDON SUPPLY was present.

The hearing was held at the MERCURE hotel in the city of Brasilia on Thursday, December 7, 2017. After the formal protocol presentations by the different state deputies, Mr. Medina proceeded to outline the guidelines.

Where can they be installed?
In any of the 32 border twin cities defined in the law.

In what part of the city can they be installed?
That is defined by each prefect, who can determine whether they can be installed in certain specific areas or anywhere in the city,

What are the prerequisites?
There are no previous requirements or previous experience needed, only a company with a net worth of 5,000,000 reais or a bond for 1,000,000 reais. The company should not be covered by the ficto tax system. Depending on the background, there are limitations on the volume authorized to import.

Can Brazilians buy?
Yes, Brazilians can buy up to an amount of USD 300 per month, without having to prove that they traveled, and it is not compulsory to buy everything in one place, or in the same day.

What products can be bought?
All imported or Brazilian products except jewelery, bijoux and cars.

Can I buy more than USD 300?
Yes, you can, but only of imported products, and at that moment in the premises you will be charged a 50% tariff for the surplus. In the case of Brazilian products, you cannot exceed USD 300. In addition, there are limitations on quantities in case of alcohol and tobacco.

Can I operate in different cities with the same name?
Yes, you can operate with the same company name and the same tax number.

Can goods be moved from one location from one city to another?
Yes, it is possible. Nevertheless, after 2 years of entering the merchandise to the first place, if they are not sold, the goods must be destroyed or the tax paid.

How are national products purchased?
They are invoiced without taxes directly to the operator of the store.

How is the regime to be used in Brazil?
It is a flexible regime of electronic invoicing based on the law of free zones.

Will they sell in reais or dollars?
I can be sold in both currencies.

Is there a canon?
Not as it is known in Uruguay or in airport operations. They will have to pay 6% for imported products and 3% for nationals to the Special Development Fund and Aperfeiçoamento de Atividades de Fiscalização (FUNDAF)

How much will Brazilians be able to buy in the Free Shop of the neighboring countries?
For the time being, the authorization of USD 300 is still valid, but it is the intention of the Receita that once the stores start operating in Brazil, this amount will be reduced to USD 150, unless a global Mercosur agreement is made.

What would be the start date?
In April the software and other adjustments would be completed, therefore August 2018 would be the estimated month for the first authorizations to be given.

Both ASUTIL and the CEFSU (Chamber of Businessmen of Free Shop of Uruguay) hand delivered a copy of the comments sent via mail of the public consultation to Mr. Medina of the Federal Revenue and remain at the disposal for further exchanges and other upcoming issues.