Brazil is one market where understanding the final checkout amount is especially important.
TEMU is officially certified under Receita Federal's Programa Remessa Conforme, or PRC. Under this system, qualifying international e-commerce platforms collect applicable import taxes during checkout rather than leaving the customer to discover the tax only after the parcel reaches Brazil.
Receita Federal requires certified platforms to disclose information such as the product value, international shipping where applicable, Import Tax, ICMS and other relevant charges before the purchase is completed.
This means a Brazilian shopper should compare the final taxed checkout amount when deciding whether a TEMU promotion is worthwhile.
For purchases made by individuals through certified PRC platforms with a customs value of up to US$50, the federal Import Tax rate is currently 0%. ICMS still applies and varies according to the buyer's state, generally between 17% and 20%.
The customs value used for these limits generally includes the product price plus shipping and insurance when those amounts are not already included.
So “0% Import Tax” does not mean that a qualifying TEMU order is completely tax-free. State ICMS can still be charged.
For purchases above US$50 through a certified Programa Remessa Conforme platform, Receita Federal currently applies a 60% federal Import Tax with a deduction equivalent to US$30 from the calculated tax. ICMS of approximately 17% to 20%, depending on the state, is also applicable.