Illegal clothing and accessories market loses most to smuggling in Brazil


By Jéssica Lima / Modanet

The illegal market in Brazil is responsible for handling large amounts of money per year and, consequently, the government and society are affected by it. According to a study released in March by the Institute for Economic and Social Development of Borders (IDESF), Brazil loses R $ 130 billion annually due to the illegal smuggling market, tax evasion, and the losses to industries.

In this scenario, the clothing and accessories sector has an alarming picture: the segment lost R $ 29 billion in 2016 due to illegal trade, according to a survey carried out by the National Forum Against Piracy and Illegality (FNCP). By including other items, such as sneakers (R $ 1,6 billion), glasses (R $ 7,78 billion) and watches (R $ 624 thousand), the loss comes close to R $ 39 billion.

“Illegal trade brings losses to both the market and the consumer. The cause is directly linked to the high value of taxes paid by companies, a situation that ends up facilitating illegal trade and contributing to crime ”, says Edson Vismona, president of ETCO and FNCP.

Source: Digita Fashion Sitel (click to read the full article)