Elected government program addresses issues advocated by ETCO

At the end of October, President Dilma Rousseff was re-elected with 51,6% of the vote, in the tightest victory in electoral history. In her opening statement, the president promised to strengthen partnerships with various sectors. ETCO compiled the positions expressed during the president's campaign on the issues it advocates. Check out what the government thinks about them:

 

Reduction of tax evasion

Tax evasion was treated in a generic way in the set of proposals to simplify the tax system. In her government program, Dilma promised to advance “in reducing the bureaucracy of business processes and procedures, including tax simplification”. According to a 2012 study by the Latin Trade Group, Brazilian companies spend 2.600 hours to determine and collect taxes. “Simplification is important because, when it is difficult to remain legal, tax evasion is encouraged,” says Evandro Guimarães, ETCO's chief executive. Even with the country making little progress in simplification, the siege of tax evaders has become stronger. The adoption of the Electronic Invoice (NF-e), in addition to the increasing computerization of federal and state tax authorities, has contributed to making tax evasion more difficult. More specific measures, such as simplifying tax collection, which could reduce tax evasion have not been addressed in depth.

 

Modernization and simplification of the tax system

Regarding the tax issue, the president will face the challenge of implementing more effective measures than those taken so far. The president has been betting on specific exemption and simplification measures, which reduced the weight of the tax burden by R $ 100 billion, according to the Federal Revenue Service. However, they were not enough to leverage economic growth. Despite this, there is no sign that the strategy of making specific reforms will change over the next four years. The government should announce measures to simplify PIS, Cofins and ICMS later this year. According to the proposal, the ICMS rates would be unified and a tax credit would be created generated on the purchase of certain inputs, which would allow the deduction of PIS and Cofins from other taxes.

 

Stimulating the market economy

As soon as Dilma Rousseff was re-elected, the confidence of investors downward manifested itself in the fall of the stock market and in the rise of the dollar, which shows that the market wants a clear signal from the president about economic policy. It is also expected that a “pragmatic” team will be appointed to give investors the confidence they need to make investments. In recent months, in the face of signs of deceleration, the government has bet on exemptions granted to specific sectors in order to leverage the rest of the economy. The formula does not seem to have worked, since the predicted growth fluctuates by 1%. Credit, employment and income are stagnant. Inflation is at the ceiling of the target. The collection will hardly reach its goal in 2014. In her government program, the president understands that economic development is directly related to productivity. "Its increase will be due to the modernization of the Brazilian industrial park, the improvement in the business environment and the greater training of companies and qualification of the workforce", says the text. In the document, the government promises an uncompromising defense of the economy. Another priority is to continue social policies. In addition, promoting economic growth by stimulating competitiveness and improving the educational level.

 

Protection of intellectual property and combating smuggling

The protection of intellectual property and the fight against smuggling, piracy and counterfeiting have eluded the electoral debate. However, Dilma's government plan includes measures that address these issues indirectly. The main one is to strengthen border policing, with joint efforts by federal and state agencies, to curb the entry of arms, drugs and illegal products. In addition, the government says it will equip the Federal Police and Federal Highway Police, without detailing, however, investments and priorities.

 

Fighting corruption and improving the institutional environment

In the second round, Dilma announced a package with five measures to improve the fight against corruption. Among them, hardening the penalties against box 2, making enrichment a crime, speeding up proceedings in a privileged forum, speeding up processes of embezzlement of public resources and creating a legal device to confiscate illegally obtained goods. Three of these five measures were already included in bills in Congress. In the anti-corruption agenda, Dilma's program proposes to increase transparency through the Digital Government portal, to equip internal control bodies and to stimulate the creation of anti-corruption mechanisms in states and municipalities. The agenda also includes political reform and the expansion of popular participation in the government.

 

(With information from the newspapers O Estado de S. Paulo, Folha de S. Paulo, Valor Econômico, Bom Dia Brasil, Veja Online Portal and the Government Program of Dilma Rousseff)

 

 

 

 

Siege on the sale of stolen goods

The government of São Paulo enacted Law 15.315 / 14 in January, which revokes state registration of an establishment that acquires, sells, transports or stores theft or theft product. The penalty is valid even when reception is not proven and is effective even in cases where there is only resale and exposure of irregular products.

Company partners are also prohibited from exercising the activity of the establishment punished for five years. During this period, they cannot apply for a new company, even at another address. In addition, they must pay a fine in the amount of twice the value of products of criminal origin.

The rule also provides for disclosure of companies punished in the Official Gazette of the State of São Paulo and the loss of tax credit. It also determines that the fines collected should be fully invested in combating theft and theft of cargo, as well as in the sale of counterfeit and misplaced products. Law 15.315 / 14 is still awaiting regulation.

Federal Highway Police intensifies work on the country's north to south borders

The Federal Highway Police (PRF), in partnership with the Federal Revenue Service and the National Health Surveillance Agency, launched, throughout the month of September, numerous actions on the Brazilian borders.

In addition to the permanent presence that already existed on the southern limits of the country, inspections at the northern and western borders of Brazil were reinforced. With these new barriers intensified, the actions of Operation Sentinel, a strategic project of the Federal Government to fight transnational crimes, gains a new security belt that has already been working.

From Amapá to Rio Grande do Sul, the number of PRF operational units, located at points close to the borders, received reinforcement from agents from other states and groups specialized in fighting crime.
Trafficking in drugs, medicines and weapons, illegal entry of foreigners, evasion of foreign exchange, contraband and embezzlement, theft and theft of vehicles, environmental crimes were some of the illicit combated during the actions. The result is impressive: approximately 13 million reais were seized in smuggled goods - among which 57236 units of medication; 500 liters of fuel; 4529 liters of drinks and 11427 electronics units. In addition, 60 wild animals were also apprehended; thousand cubic meters of wood; 161
firearms among other materials.

Source: Social Communication Office of the Federal Highway Police

Ministry of Social Development publishes letter on counterfeit products

With the objective of alerting the population about the care with counterfeit products, the Ministry of Social Development and Fight Against Hunger issued a letter with eight important items, calling attention to several blows carried out by gangs. Sent to several companies, the material also has a direct channel for consumers and distributors to answer specific questions.

Click here and access the material

Entities ask candidates for commitment against piracy, counterfeiting and smuggling

ETCO and the National Forum Against Piracy and Illegality (FNCP), together with 18 other entities, launched on September 16, in Brasília (DF), a letter of commitment for candidates and current occupants of legislative positions. . In the document, the institutions ask for measures to protect the national market from the harmful effects of piracy, counterfeiting and smuggling of consumer goods and services.

“This letter is a warning from industry and commerce to show that tenacity and political will are needed to protect the internal market. We are forwarding it to the candidates and current representatives in order to obtain a commitment to change the way the authorities face these problems ”, says ETCO's executive president, Evandro Guimarães.

In addition to the letter with direct protection measures, the entities also propose the creation of the National Day to Combat Smuggling, dated March 3. The day will serve to mark the fight against this serious misconduct, which harms the economy and society as a whole.

According to the FNCP, the losses caused by the illegal trade in goods and services in 2013 exceeded R $ 30 billion. "Illegality is also linked to tax evasion, the loss of formal jobs, as well as risks to the health of the consumer, who is at the mercy of uncontrolled products", points out the entity's president, Edson Luiz Vismona.

For the organization, the trade in illegal products is linked to crimes such as kidnapping, trafficking in arms, ammunition, drugs and people, money laundering and theft. Behind the purchases made in street vendors, there is the performance of sophisticated criminal networks that move billions of reais in illegal products.

Data collected by the FNCP show that in the city of São Paulo alone, between 2010 and 2012, more than R $ 2 billion in illegal goods were seized. In the Federal District, in 2013, 1,23 million products were seized. According to the IRS, in 2013, the total value of goods seized at the borders was R $ 1,68 billion, a fraction of what actually enters the country illegally.

To learn more, click here and check the letter of commitment

Also read article published in the Correio Braziliense newspaper

Click here and see Evandro Guimarães interview for Câmara radio 

For the defense of the legal market

EDSON LUIZ VISMONA President of the National Forum Against Piracy (FNCP) and Instituto Brasil Legal

EVANDRO DO CARMO GUIMARÃES Executive President of the Brazilian Institute of Competition Ethics (ETCO)

Piracy, counterfeiting and smuggling of the most diverse consumer goods have been increasing in Brazil and are present in the daily lives of Brazilians, reaching the most diverse productive sectors: medicines, clothing, cigarettes, toys, drinks, optical products, CDs, DVDs and an endless list that arrives at homes without control and with risks to the health of each citizen.

Sometimes society has a hard time understanding the damage caused by these illegal activities. If we consider, for example, the 13 sectors of the economy most impacted, as demonstrated by the National Forum Against Piracy and Illegality (FNCP), the accumulated losses reached RS 24,5 billion in 2012. For 2013, the data in the final stage of survey point to more than RS 30 billion. Not to mention tax evasion, loss of formal jobs and the worrying fact that consumers are at the mercy of products harmful to health.

In a study conducted by the State University of Ponta Grossa with contraband cigarettes (which are not subject to inspection), the health control agency verified the presence of heavy metals in large quantities, increasing the risks for consumers. The same occurs with drugs, especially those aimed at combating more complex diseases, which, because they are more expensive, attract criminals who sell placebos as if they have an active element.

What many are also unaware of is that the trade in illegal products is linked to a series of much more serious crimes, such as trafficking in arms, ammunition and drugs, money laundering, theft, kidnapping and human trafficking. Behind the purchases made in street vendors, there is the performance of sophisticated criminal networks that move billionaire sums supplying illegal products - in the city of São Paulo alone, between 2010 and 2012, more than RS 2 billion in goods were seized. In the Federal District, in 2013, 1,23 million.

The financial movement overcomes drug trafficking and fuels crime in the most profound actions. Not only. It directly affects industry and commerce, which have rules to ensure the safety and reliability of products, in addition to being the tool for sustaining millions of legal workers.

Another serious problem is the Brazilian borders, which need to stop being land without law. For that to happen, specific actions are not enough. It takes coordinated action by governments at all levels, and work on the most diverse fronts to make criminal activities that undermine the country's security unfeasible.

In an election year in which we have the challenge of electing president, governors, senators, state and federal deputies, and in a political scenario in full swing, the Brazilian Institute of Competitive Ethics (ETCO) and the National Forum Against Piracy and Illegality ( FNCP), along with productive sectors of the economy, decided not to be oblivious to the debate. The theme is complex and involves several aspects, such as border security, the defense of consumers' rights and health, the protection of the national industry against unfair competition and the preservation of the consumer market.

In this sense, we call on candidates to make commitments that guarantee rights and combat unacceptable misconduct in a country with territorial, population and economic dimensions like the Brazilian ones, in order to protect the internal market. We propose to future governments a systematic effort to combat smuggling, piracy and counterfeiting in order to defend industry and national trade.

The reality of illegal trade in Brazil has reached a level that requires a change in posture not only by the authorities, but by the whole of society. We need intelligence, tenacity, political and administrative will to protect the internal market. Our commitment is to defend national interests and fight against all types of illegality.

Source: Correio Braziliense newspaper

Click here and check the entire letter of commitment

Read also In defense of the Brazilian legal market

More than US $ 30 billion leaves Brazil illicitly a year, says study

WASHINGTON (Reuters) - More than $ 30 billion in dirty money linked to crime, corruption and tax evasion leaves Brazil every year, twice as much as a decade ago, a study showed.

Irregular trade pricing is the main way that money leaves the country, accounting for 92,7 percent of the $ 401,6 billion that left Brazil between 1960 and 2012, according to Global Financial Integrity (GFI), a Washington-based research group that advocates financial transparency.

Annual losses are equivalent to 1,5 percent of Brazilian economic output, averaging $ 33,7 billion a year from 2010 to 2012, up from $ 14,7 billion in the first decade of the century 21.

But the losses are likely to be greater, said GFI, considering that its estimates do not include large amounts of money smuggling, a favorite method of moving money by drug dealers and other criminals, or in negotiations for services or financial transfers between branches of multinational corporations.

In Brazil, the informal economy has shrunk to 21,8 percent of official GDP, as the country's regular economy has grown, compared to a peak of 55 percent in the 1970s, according to the GFI. Despite this improvement, high revenue from dirty money flows is a concern.

Click here to check the full article

Source: Reuters

In 4 years, more than 100 thousand counterfeit beer bottles in Brazil

Remove the label and cap from a cheap beer, and stick the label and cap from a more expensive beer on it. Technically, it is not a complex process. Easy, even, considering that it brings three-digit profits. This was what a supposedly peaceful merchant from the Jardim Romano neighborhood, in the East Zone of São Paulo, was doing, according to agents from the State Department of Criminal Investigations (Deic) who arrested him. He took bottles from a small brewery from the city of São Paulo of the same name, and made them pass through two of the beers with the greatest participation in the Brazilian market.

In May, five people were arrested by PMs from São Paulo, in a house in Ferraz de Vasconcellos, a city in the São Paulo Metropolitan Region. Two 20-year-olds and one 18-year-old caught with 64 crates of beer said they had been hired three months ago by the two property owners to basically do the same thing, replacing the cheapest labels and caps with the most expensive ones. In July last year, the same Deic had already arrested a bricklayer who worked in a similar way on Avenida Parada Pinto, in Vila Nova Cachoeirinha, in the north of the city.

It is a situation in which the consumer loses, who buys a cat in a poke, and the companies, which not only stop selling their products but also have the brands improperly transmitted. The country's largest consumer market, São Paulo, no wonder, seems to be a constant target of counterfeiters, but it is far from being an exception. In the past four years, civilian and military police officers across the country have dismantled at least 17 schemes for this type of crime in seven states and the Federal District, according to a survey by Dois Fingers in Collar with police sources and online journals across the country.

In 2014 alone (which is not over yet, as we know), I was able to identify 6 different cases, the same number as in 2013. Another 3 cases were reported by the authorities in 2012 and 2 in 2011. In total, 50 people were arrested, including three minors. age (which are “apprehended” to use the correct technical term). The volume involved in these frauds is 101,8 bottles, or just over 60 liters.

I know the number is impressive, but let's take it easy with Andor, drinkers. Brazilian beer production is almost 14 billion liters per year, according to data from the Beverage Control System (Sicobe), therefore, the total volume of counterfeits represents only 0,0004% of the total. It is a drop in the ocean of beer consumed by Brazilians. Considering that the four largest companies in the sector in the country produce 97% of the beer on Brazilian lands, according to their association, CervBrasil, there is another practical limitation on the scope that fraud can have.

Click here to check the full article

Source: O Globo Online