Brazil will set up a tax and customs agency in China, the Brazilian Ministry of Finance recently announced. According to the ministry, the initiative has been considered strategic by the Federal Revenue Office since 2023, and the process is justified by the growing flow of goods between the two countries.

The creation of the alliance in China, according to the Ministry of Finance, is underway. According to the ministry, as China has been Brazil’s main trading partner since 2009, the presence of a specialized agency will bring advantages such as mutual understanding of legislation, reduction of bureaucratic barriers, and promotion of bilateral trade.

The Ministry of Finance also reported that the unit in China will help reduce illegal practices that harm bilateral trade by combating tax evasion; combating smuggling; and directly exchanging information and experiences.

Discussed internally by the government since 2023, the creation of the alliance has been analyzed by various agencies and ministries over the past two years. The Ministry of Foreign Affairs evaluated the initiative earlier this year.

(Source: Carta Capital - Brazil, on July 21)