According to a new survey published by the Brazilian Economic and Social Development of Borders Institute (IDESF) and the Brazilian Association Against Counterfeiting (ABCF), the national industry and tax authorities suffered losses of approximately USD 40 million in 2018, due to smuggling and counterfeiting. This amount represents an increase of 14% compared to 2017, and was allegedly caused by the impact of high taxation on Brazilian goods, which would harm competition with foreign markets.
Among the seizures made by the Brazilian IRS, cigarettes appeared on a prominent position, representing 43% of the confiscated products. In addition, the number of seizures – R$ 3.1 billion – also showed a considerable increase, indicating a growth of 40% compared to 2017.
IDESF and ABCF propose lowering taxes on specific markets, reinforcing the surveillance on ports and national borders, and implementing product tracking systems as enforcement measures against the illegal activities. The survey pointed the states of São Paulo, Paraná and Rio Grande do Sul as the largest consumers of counterfeit products.
More information, in Portuguese, is available at https://g1.globo.com/pr/oeste-sudoeste/noticia/2019/03/15/contrabando-e-pirataria-causaram-prejuizo-de-r-160-bilhoes-em-2018-aponta-pesquisa.ghtml