The recent government decision to exempt international retailers from taxes has ignited heated debates. Local retailers argue that this move creates an unfair playing field and will have repercussions on the income and job prospects of Brazilians. On the other hand, the government contends that the Comsefaz's decision aims to regulate an existing practice and will ultimately lead to greater oversight by the Department of Federal Revenue regarding imported goods.

Local government data reveals that in 2022 alone, over 170 million international shopping packages were received by the Postal Service, with less than 2% of them having a Declaration of Imported Remittances (Declaração de Importação de Remessas or DIR, in Portuguese). Previously, packages sent between individuals containing goods valued below US$50 were not required to be declared. However, it was a common practice for companies to send packages under the names of individuals to evade inspection.

Starting in August, the exemption from import taxes will also apply to e-commerce platforms that participate in the Remessa Conforme program. Companies joining this new initiative will be obligated to provide product and buyer data to the Postal Service or carriers to complete the DIR. Additionally, ICMS (tax) will need to be paid. With this streamlined process, merchandise can be directly shipped to the recipient's address without the need for screening in Curitiba that currently occurs.

As the controversy persists, Market Analytics' monitoring indicates that Asian giants Shein and Shopee are continuously expanding their presence in the Brazilian industrial real estate sector. During the second quarter of 2023, Shein and Shopee secured space in complexes located in São Paulo and in Pernambuco and Curitiba, respectively.

This trend has been closely observed by the SiiLA team over the past few quarters. For instance, Shein had already leased 55,000 m² in São Paulo during the first quarter of this year.

On the other hand, Shopee has a more diverse presence in the country, occupying properties in São Paulo, Rio de Janeiro, Minas Gerais, Paraná, Rio Grande do Sul, and starting this quarter also in Pernambuco. Collectively, the retailer's occupied area exceeds 130,000 m² on Brazilian market.