No smuggling

Article Deputy Efraim Filho

In these times of crisis in which the country is investigating Petrolão, one of the biggest corruption scandals in our history with an estimated value of R $ 80 billion in deviations, there are equally scandalous numbers that are going unnoticed by many people.

Brazil loses, annually, R $ 100 billion with the crime of smuggling. It's a lot of money. It is a resource that could be used in needy sectors such as health, security, infrastructure and education, for example.

Therefore, the government needs to take decisive, effective and immediate measures in the face of this serious problem that has been occurring with impunity in the country and without the attention that the topic deserves.

We must understand that smuggling is a crime and directly involves or is part of the corruption process that is plaguing Brazil. To attack smuggling is to put an end to institutionalized corruption.

Moreover, today Brazil needs resources for the growth of the economy and investing in the fight against smuggling is an efficient and low cost way to increase tax collection. There are two ways for a government to collect more taxes: increase the rate of products or increase the tax base. What has been happening is the increase in tax rates, which is leading the low-income population to consume contraband products, cheaper for not paying taxes and without any quality control. In other words, the high tax reduces the collection and increases the risk to health.

Combating smuggling is, therefore, a life-saving measure. After all, the health of all of us is impaired when we consume products such as medicines, drinks, cigarettes, toys or glasses that freely enter the country without certification. A child may be suffocated with an unsecured toy or even lose his life when taking a counterfeit medicine. A study carried out by the State University of Ponta Grossa (UEPG) with samples of Paraguayan cigarettes found even the presence of residues of cockroaches and rats.

Cigarette leads the ranking of smuggled products in Brazil (31,5% of the market), which caused, last year alone, a loss of R $ 4,5 billion due to tax evasion. Not to mention the loss of jobs.

Smuggling is also an activity that finances trafficking in arms, drugs and organized crime, affecting the safety of our families.

An extremely important measure is to strictly punish these crimes, and that is why I was the author of the bill that increased the penalty for the crime of smuggling and differentiates it from misdemeanor.

To curb these serious misconduct that continue to punish society and hamper the investment capacity of Brazilian companies, the Mixed Parliamentary Front to Combat Smuggling and Counterfeiting was created, formed by more than 200 participants, including federal deputies and senators, with the objective of the definition of effective proposals in the legislative field and the collection of the Executive Power in the execution of firmer and more immediate actions.

Smuggling is a world where few win, but everyone loses. And more than ever, coordinated action by the public authorities, society and the productive sector is necessary in a collective exercise of responsibility to combat these criminal activities that negatively impact the Brazilian people and national sovereignty.

Ephraim Son, lawyer and federal deputy (DEM / PB), he is president of the Mixed Parliamentary Front to Combat Smuggling and Counterfeiting.
Source: Gazeta do Povo (22/01)

Bill toughens punishment for smuggling

Mixed Parliamentary Front to Combat Smuggling
Mixed Parliamentary Front to Combat Smuggling

Brazil loses about R $ 100 billion every year to the crime of smuggling. In addition to the negative impact on the country's revenue, smuggling affects the stability of several economic sectors, the jobs of Brazilians, the health of the population and the security of citizens.
This is the case, for example, with toys, which do not undergo any type of quality control, and can seriously injure children. Cigarettes brought from Paraguay, which today represent more than 30% of the national market, do not follow the rules established by Anvisa. Currently, more than 1.200 websites illegally sell medicines in Brazil.

 

Parliamentary Front to Combat Smuggling and Counterfeiting

 Faced with this serious problem of public interest and affecting national sovereignty, the Mixed Parliamentary Front to Combat Smuggling and Counterfeiting is being launched on Thursday (May 14). The new front, which already has the participation of about 220 deputies and senators, is chaired by federal deputy Efraim Filho (DEM / PB).
The objectives of the front are:

 

v Define and present legislation proposals that contribute to the effective fight against smuggling and counterfeiting;

v To demand from the public authorities, at the federal, state and municipal levels, the execution of firm and immediate actions to reduce the problem of smuggling, counterfeiting and its negative impacts on society;

v Take the discussion on smuggling and counterfeiting to the whole of society through debates and public hearings;

v Find out other ways that can be taken so that the country is no longer a victim of these crimes.

 

Bill of Law

As the first act of the Mixed Parliamentary Front, deputy Efraim Filho filed last Wednesday, May 13, the Bill 1530/15, which aims to harden the fight against smuggling. The main points are:

 

v Loss of driver's license for people caught in the act carrying smuggled goods;

v The obligation to display cigarettes and beverages at points of sale, in a visible place, with a warning with the following words: “It is a crime to sell contraband cigarettes and beverages. Report it".

v Loss of CNPJ for 5 years for companies that are convicted of transporting, distributing, storing or trading contraband products.

 

Movement in Defense of the Brazilian Legal Market

 

Created in September 2014, the Movement is led by the Brazilian Institute of Competition Ethics (ETCO) and by the National Forum Against Piracy and Illegality (FNCP) and already has more than 70 entities and associations from different productive sectors.

 

 No Smuggling

The site www.noaocontrabando.com.br it has been available since last Thursday (15/05) so that there is a content hub on combating smuggling accessible to the entire population. There will be several news about laws and projects related to the theme, studies and statistics on smuggling in Brazil and the initiatives of the Brazilian Legal Market.

 

Entrepreneurs call for stepping up operations to combat smuggling

Representatives of business entities asked Vice President Michel Temer to increase the duration of operations to combat illicit activities at the borders. They represent companies affected by product smuggling.

“With Operation Agate, smuggling dropped dramatically. That is why it is necessary to prolong its durability ”, defended the president of the Brazilian Institute of Ethics in Competition (ETCO), Evandro Guimarães.

Coordinator of the Strategic Borders Plan (PEF), the vice president recognized the legitimacy of the request. "I will talk with the Ministers of Defense and Justice to outline the best way to intensify the fight against cross-border illicit, which cause economic and social losses and contribute to the growth of crime in cities", he concluded.

Coordinated by the Ministry of Defense, Operation Agate takes place sporadically on the borders of Brazil and has the support of the Ministry of Justice, Federal Revenue, state police and other public bodies.

Learn more about Operation Agate, by clicking here

 

 

Revenue launches mega operation to fight smuggling on the border

The Federal Revenue Service (RF) launched a mega-operation to combat smuggling and embezzlement, piracy and other border crimes. Operation Escudo, as it is being called, will have barriers set up at strategic points in Paraná, Mato Grosso do Sul and São Paulo. Flying teams, RF helicopters and sniffer dogs should also be used to reinforce the fight against crime.

The objective is to reinforce the inspection on the entire route of products brought illegally, especially from Paraguay, from the entrance to the final destination, concentrated in São Paulo, and thus reduce the circulation of goods, not just seize them.

The action is part of Operation Armored Frontier, launched in 2005, with the participation of the Federal Police, Federal Highway Police and civil and military police from the three states. Only from RF, 600 servers will be mobilized.

To read the full story, click here

 

In three months, smuggling loses more than R $ 51 million

Known nationally and even internationally as a trafficking route, smuggling and embezzlement, the Western region presents astronomical numbers with regard to the amount of cigarettes seized in the first two months of 2015.

According to data from the Federal Revenue of Cascavel, Foz do Iguaçu and Guaíra, there are already more than R $ 51,8 million in seizures of products from Paraguay from January 1st to now. In packs, there are more than 10,7 million.

But, despite the seized volume, the Federal Police points out that only 2% of the products that cross the border are barred in inspections made jointly with the Federal Highway Police, Federal Revenue, Military Police and Civil Police.

Source: Paraná (01/04)

To read the full story, click here

Expansion of the Paraguayan economy may boost Brazilian exports

According to data from the Ministry of Development, Industry and Foreign Trade (MDIC), Brazilian foreign sales to Paraguay have grown by 40% in the last five years, and went from US $ 3,1 billion in 2010 to US $ 4,4 billion in 2014. Last year, national exports to the neighboring country expanded by 9% compared to 2013, the year in which foreign sales totaled around $ 4 billion.

 

Brazilian and Paraguayan authorities have been working to reduce smuggling on the border between the two countries. Since July of last year, a measure of the Brazilian government has reduced the share of purchases for Brazilian tourists who enter the country by land to US $ 150 dollars per person, compared to US $ 300 dollars.

 

Source: Dinheiro Rural Magazine (23/03)

 

To access the full story, click here

“A missile at the heart of citizenship”

Photo: Letícia Moreira
From left to right: Roberto Teixeira, Evandro Guimarães, Ives Gandra Martins (Photo: Letícia Moreira)

Folha de S.Paulo promoted on the 18th and 19th of March the seminar “Forum o Contrabando no País”. The event brought together experts from different sectors, outlining the impact of smuggling on the Brazilian economy.

ETCO's Executive President, Evandro Guimarães, participated in one of the panel discussions, alongside jurist Ives Gandra Martins and former chairman of the Securities and Exchange Commission (CVM) Roberto Teixeira da Costa. For the President of the Institute, it is necessary to move from speech to action. “ETCO is uncomfortable with this paralysis and with the mechanisms that internalize products without following the proper regulatory paths. Smuggling diverts resources that could be used in health and education and discourages entrepreneurship. It is a missile at the heart of citizenship ”, says Guimarães.

The opinion was reinforced by Martins, who established a link between the illegal practice and the high tax burden in the country. "The higher the taxes, the more smuggling and embezzlement are encouraged." For him, the solution involves inspection at points of sale. “The extension of our borders makes stricter control impossible. The most feasible thing is to control the consumption tip. ”

The ex-president of the CVM pointed out that the Brazilian, for cultural reasons, is lenient with the illegal trade, and that it is also necessary to invest in educational campaigns. "We need to show in a clear way what the losses caused by smuggling are," he concluded.

For the executive president of the National Forum to Combat Piracy, Edson Vismona, the Brazilian legal market needs to be defended. He is in favor of a stricter inspection policy in order to inhibit the marketing of counterfeit and smuggled products.

The seminar also included the participation of representatives of the Executive and Legislative branches, such as the Minister of Justice, José Eduardo Cardoso, Senator José Serra and Federal Deputy Efraim de Araújo Morais Filho.

Folha de S.Paulo published a special notebook on the subject on March 12 (http://arte.folha.uol.com.br/mercado/2015/03/12/crime-sem-castigo/) and another on the seminar, published on 23/03.

Brazil loses R $ 100 billion with smuggling

Photo: Marcelo Camargo / Agência Brasil
Photo: Marcelo Camargo / Agência Brasil

At an event to mark March 3 as the National Day to Combat Smuggling, the ETCO Executive President, Evandro Guimarães, and the President of the National Piracy Combat Forum (FNCP), Edson Luiz Vismona, revealed that, according to estimates by FNCP, Brazil has losses of R $ 100 billion with contraband, considering sectoral losses and tax evasion. To give you an idea, with this amount it would be possible to build 1,4 million popular houses, 105 thousand kilometers of highways, 77 thousand hospital beds and 19 thousand daycare centers.

The products considered “champions” of contraband in Brazil are cigarettes, which move R $ 515 million per year; electronics, which generate R $ 151 million, and clothing items, with R $ 94 million.

“It is not surprising that the cigarette and clothing markets are the leading contraband in Brazil, if we take into account taxes in these sectors: 70% for cigarettes and 44% for clothing. An analysis of the tax burden, combined with measures such as greater border inspection and a work to raise awareness among the population, is essential to reduce smuggling rates, ”says Guimarães.

The event was an initiative of the National Movement in Defense of the Legal Market, made up of more than 70 entities representing the Brazilian economy and led by ETCO and FNCP. The Movement wants to establish March 3 as the National Day to Combat Smuggling.

Guimarães and Vismona drew attention to other actions: the Institute for Economic and Social Development of Borders (Idesf), in the study The Cost of Smuggling, shows that only between 5% and 10% of smuggled goods are seized (http://www.idesf.org.br/v3/estudo_web.pdf). The Brazilian Association to Combat Counterfeiting (ABCF) surveyed the main seized products and the states for which they were destined (http://www.abcf.org.br/abcf-news.php).

The National Movement in Defense of the Legal Market initiated an action to sensitize representatives of the Executive and Legislative on the losses caused by smuggling and the need for fundamental measures to combat this crime. Among them: control the borders, through rigorous inspection; create a positive Brazil / Paraguay agenda, of a business character, so that the neighboring country can develop in a sustainable way; and promote tax adjustments so that legalized products can be more competitive, thus reducing the financial attractiveness of smuggled goods and making the business environment more fair and competitive.