Department of Transit Must Return R$ 261.8 Million for Improper Fee Charged on Mercosur Vehicle Registration

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Published on 17/12/2025 at 14:44

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Court Ruling Confirms São Paulo Court Decision Explains How Charges Worked Between 2020 and 2023, Points Out Illegality and Shows Why the Conflict Over Mercosur Plates Continues in Court

A judicial decision of great financial and administrative impact was recently confirmed by the São Paulo Court of Justice, bringing direct repercussions for Detran-SP, companies in the sector, and consumers. The TJ-SP upheld the condemnation of the Government of the State of São Paulo to pay R$ 261.8 million, amount referring to charges considered illegal in the process of vehicle registration with Mercosur standard plates.

This charge occurred between 2020 and 2023, a period during which the Mercosur plate model was implemented in São Paulo. Even after the transfer of the manufacturing and installation of the plates to accredited private companies, Detran-SP instituted a “public price” to release the necessary data for plate production, effectively maintaining an indirect state revenue collection method.

How the Charges Worked in Practice

The implementation of Mercosur plates, which began in 2020, replaced the old physical seals with identification QR Codes. As a result, the printing, which involves production and installation, became a private service. Accredited companies began to perform this activity.

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Nonetheless, Detran-SP started charging companies a fee to authorize access to system information. Consequently, this additional cost was passed on to the final consumer. The passing on of this cost raised the price paid for registration.

According to the São Paulo Court of Justice, this practice violated the principle of legality. The public agency could not charge for a commercial and private service. The understanding separates this service from the official vehicle registration, which remains a state responsibility.

Lack of Specific Law Weighed in the Decision

Another central point of the ruling involves the absence of a legal basis. As highlighted by TJ-SP, the creation or modification of public fees requires specific legislation. This requirement was not met between 2020 and 2023.

Thus, the court concluded that the charge could not be equated with a legitimate fee. The service involved had a private nature and did not correspond to a typical state administrative act.

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Who Will Be Entitled to Refunds

In this scenario, the condemnation resulted from a class action filed by the Association of Vehicle License Plate Manufacturers of the State of São Paulo (Aeposp). Therefore, the refund of R$ 261.8 million will occur through precatory. Thus, the public authorities will use this mechanism to settle the judicial debt.

In this way, the associated companies that paid the undue charge during the analyzed period will receive the amounts. On the other hand, final consumers and companies not linked to the association face a different situation.

According to Detran-SP itself, those who wish to recover improperly paid amounts must file individual lawsuits. In this case, the interested party will need to provide proof of payments made.

Dispute Over Mercosur Plates Still Continues

Following the decision, Detran-SP began charging the registration fee directly from owners. Nevertheless, this new charge has begun to face challenges in court.

Thus, the conflicts involving Mercosur registration remain unresolved. Meanwhile, the debate that began in 2020 continues to produce significant legal, administrative, and financial effects in the State of São Paulo.

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Department of Transit Must Return R$ 261.8 Million for Improper Fee Charged on Mercosur Vehicle Registration

Court Ruling Confirms São Paulo Court Decision Explains How Charges Worked Between 2020 and 2023, Points Out Illegality and Shows Why the Conflict Over Mercosur Plates Continues in Court

How the Charges Worked in Practice

Major Oil, Gas, and Energy Event Will Take Place in Brazil: Macaé Energy Will Gather Petrobras, Equinor, Prio, Among Other Suppliers and Energy Executives for Business, Networking, and Employment Opportunities

Lack of Specific Law Weighed in the Decision

Who Will Be Entitled to Refunds

Dispute Over Mercosur Plates Still Continues

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Department of Transit Must Return R$ 261.8 Million for Improper Fee Charged on Mercosur Vehicle Registration

Court Ruling Confirms São Paulo Court Decision Explains How Charges Worked Between 2020 and 2023, Points Out Illegality and Shows Why the Conflict Over Mercosur Plates Continues in Court

How the Charges Worked in Practice

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Dispute Over Mercosur Plates Still Continues

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