Shein’s Strategic Move: Joining the “Remessa Conforme” Program in Brazil

Shein’s Strategic Move: Joining the “Remessa Conforme” Program in Brazil

Introduction of “Remessa Conforme” Program

Shein, a popular online platform, has recently initiated the “Remessa Conforme” program on its website, which encompasses a significant tax subsidy. This strategic move aims to counterbalance the extra expense of taxes, with Shein reassessing its logistical procedures to conserve costs. Although users can access this program through the Shein app, the company advises updating the app for enhanced user experience.

Ambiguity Surrounding Continuity

Marcelo Claure, the CEO of Shein in Latin America, has communicated uncertainty regarding the duration of the company’s ability to cover the ICMS (Tax on Circulation of Goods and Services). The continuation of this coverage is largely dependent on Shein’s cost-saving capabilities. However, the company aspires to sustain this for as long as feasible.

Expected Benefits for Brazilian Customers

The “Remessa Conforme” program is anticipated to hasten delivery times for Brazilian consumers. The program enables speedier customs processing for companies that participate, thereby making Shein more competitive in the market, especially considering previous instances of prolonged delivery periods.

Shein’s Position in the “Remessa Conforme” Program

Shein is the third e-commerce company to be incorporated into the program, following in the footsteps of AliExpress and Sinerlog. The latter provides services for major companies such as Amazon. The Federal Revenue reports that Shopee and Amazon have formally submitted applications to join the program. These applications are currently under review, and their adherence will be announced in the Official Gazette of the Union.

Takeaway

The primary takeaway from this development is that Shein has joined the “Remessa Conforme” program, which incorporates a tax subsidy and is projected to accelerate delivery times for Brazilian customers. However, the span of the company’s capacity to cover the ICMS tax remains unclear.