This article will give you an idea of how the market for used goods operates in Brazil. You will know what are the most popular trends and what are the initial procedures to start a business in this segment.
What is considered an used good?
An used good is something that is being purchased by a second or later user. The term means that the good being acquired is not new and is no longer in the same condition as it was when first bought. It can also be called a second-hand good.
Commercialization of Used Goods
The commercialization of used goods can happen in many ways. The goods may be informally transferred from person to person, for free, as hand-me-down goods, or sold by a fraction of its original price in specialized stores.
In Brazil, the market for used goods is very popular, especially when it comes to consumer goods. These stores can be found all over the country, mostly concentrated in downtown areas. Among the most popular specialized used goods' stores are:
- "Sebos": sells and buys books, Cd’s, Dvd's, vinyl records among others
- "Brechós": sells and buys used clothing and accessories among others
- "Móveis usados": sells and buys furniture
- "Carros usados": sells and buys cars, motorcycles trucks and others
The procedures to open an used goods store are the same as opening any other company in Brazil. It all starts with the opening of a legal entity in the country and getting the proper licenses from the City Hall.
Reduction of ICMS
The commerce of used goods suffers reduction of:
- 95% on used vehicles
- 80% on the calculus basis of machines, furniture, motors, clothing.
Companies that opt for the Simples Nacional tax system won't suffer suchreductions.
As an international trend, the e-commerce of used goods grows bigger than physical stores. There are thousands of online stores selling and buying all kinds of things as well as websites that intermediates negotiations between sellers and buyers all over Brazil.
Importing Used Goods
In Brazil, used goods cannot be imported except in cases of donation to state institutions and charity, educational, scientific and technological entities.
Imports of used goods in Brazil are regulated by Decex, Departamento de Operações de Comércio Exterior (Foreign Operations Department), subordinated to the Ministry of Industry, Trade and Tourism.
The Department authorizes imports of some used goods, such as: machines, equipments, instruments, molds etc, as long as the importer obeys some requirements. The most important condition is that the imported good is not produced in Brazil. All the rules are in Secex Ordinance number 235/2006.
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