Overview
- President Luiz Inácio Lula da Silva issued Medida Provisória 1.357/2026 on May 12 that set the federal import duty at zero for international purchases up to US$50, removing the 20% charge created by Law 14.902/2024.
- The Confederação Nacional da Indústria filed a direct action of unconstitutionality at the STF on May 25 asking for an immediate suspension of the MP and arguing the executive used the emergency instrument without the required urgency.
- STF Minister Dias Toffoli has ordered formal information from the Presidency, the National Congress and the Finance Ministry and invoked the abbreviated procedure to send the case to the plenary for a full and expedited decision.
- The MP is currently in force but must be approved by Congress within 120 days to remain law, while industry groups warn the zero rate favors foreign e‑commerce, costs federal revenue and risks jobs they say were protected by the 20% tariff.
- Beyond the court fight, the dispute matters to consumers and businesses because state ICMS taxes still apply to small imports, the pending congressional vote will determine the MP’s fate, and the STF ruling could set limits on future use of emergency decrees.