Brazil's National Industry Confederation (CNI) filed a constitutional challenge at the Supreme Federal Court on Friday, May 22, 2026, against Executive Order 1.357/2026, which eliminated the 20% import tax on international purchases up to US$50 — known as the "small items tax." ✓
Press quotes (1)
"A Confederação Nacional da Indústria (CNI) protocolou, no fim desta sexta-feira (22), no Supremo Tribunal Federal (STF), uma Ação Direta de Inconstitucionalidade (ADI) contra a medida provisória do governo que zerou a cobrança do imposto de importação sobre compras internacionais de até US$ 50"
CNI alleges the executive order violates constitutional principles of tax equality, free competition, and protection of the domestic market, while lacking the constitutional urgency requirement for executive orders. "Reducing to zero the taxation of small-value imports destined for individuals does not meet the necessary urgency to be validly issued by executive order," said CNI's legal director Alexandre Vitorino. ✓
Press quotes (2)
"A CNI argumenta que a MP viola os princípios constitucionais da isonomia, da livre concorrência e carece de requisito constitucional de urgência"
"A redução a zero na tributação das importações de pequeno valor destinadas a pessoas físicas não guarda a necessária urgência para ser validamente editada por medida provisória"
According to official data cited by CNI, small-value imports jumped from US$800 million in 2013 to US$13.1 billion in 2022, while postal shipment volume rose from 70.5 million in 2018 to 176.3 million in 2022. The entity estimates that taxation implemented in 2024 preserved 135,000 jobs and generated R$19.7 billion in the Brazilian economy. ✓
Press quotes (2)
"as importações de pequeno valor saltaram de US$ 800 milhões em 2013 para US$ 13,1 bilhões em 2022, e a quantidade de remessas postais passou de 70,5 milhões em 2018 para 176,3 milhões em 2022"
"A estimativa da CNI é de que foram preservados 135 mil empregos e R$ 19,7 bilhões"
CNI argues the measure creates "artificial advantage for foreign e-commerce platforms" and promotes population access "at the cost of worsening competitive asymmetries borne by national productive sectors." President Lula issued the executive order on May 12, five months before presidential elections. ✓
Press quotes (2)
"a MP 1.357/2026 cria uma vantagem artificial para plataformas estrangeiras de comércio eletrônico"
"à custa do agravamento das assimetrias concorrenciais suportadas pelos setores produtivos nacionais"
CNI filed ADI at Supreme Court on Friday, May 22, 2026
Executive Order 1.357/2026 was issued by President Lula on May 12
Alexandre Vitorino is CNI's legal director
Covered by only some sources, or where the accounts diverge.
Covered by only some sources (3)
Measure occurred five months before presidential elections
Minister Durigan said Lula was always bothered by the tax
Tax affects Shein, Shopee and AliExpress platforms
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What is the formal ADI case number filed at the Supreme Court?
Why it's still unknown: Sources report the lawsuit was filed but do not provide the case number
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Which Supreme Court justice will be the case rapporteur?
Why it's still unknown: Case distribution has not yet been announced by the Supreme Court
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What is the deadline for AGU and PGR to file their briefs?
Why it's still unknown: Procedural deadlines were not addressed in news coverage
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Which Supreme Court precedents on executive order urgency requirements does CNI invoke?
Why it's still unknown: Detailed legal arguments of the lawsuit were not disclosed