Inmetro opens public consultation for fuel pumps

gasoline pump

The National Institute of Metrology, Quality and Technology (Inmetro) makes available for public consultation, until June 26, 2015, a proposal for a regulation, unprecedented in Brazil, aimed at liquid fuel metering pumps. The requirement provides for a new generation of measuring instruments, which even includes the creation of exclusive software that will also allow the consumer to have power of surveillance at gas stations. Through the application store, it will be possible to download a program for mobile phones, also created by Inmetro technicians, which will provide the consumer with a reliable reading of the supply data. With this measure, he will be able to check, whenever filling, if the values ​​shown on the pump display are correct or fraudulent.

Paper industry intensifies fight against tax fraud

IMMUNE PAPER IMAGEThe paper industry is stepping up efforts to combat tax fraud in the sector. A campaign seeks to make consumers aware of the use of immune paper (sold tax-free) and measures are being adopted to curb criminal practices.

"The paper sector sees the fruits of collective efforts to fight fraud involving paper with tax immunity growing, which should be used exclusively for the printing of books and periodicals, as provided by the Brazilian Constitution". The statement is from the president of the National Association of Paper Distributors, Vitor Paulo de Andrade, commenting on the recent developments of the Immune Paper Operation, of the Federal Revenue.

Earlier this month, the Federal Prosecutor's Office in São Paulo denounced 11 people involved in fraudulent importation for money laundering, criminal organization and misrepresentation. Between 2009 and 2013, the group hid and concealed the origin, movement and ownership of around R $ 1,1 billion from various crimes, such as embezzlement and tax evasion. For this, it used shell companies, fake invoices and "oranges".

The criminal organization took advantage of the tax immunity granted to paper intended for books, newspapers and periodicals. However, instead of reselling the imported product without taxes to buyers linked to such purposes, the defendants passed it on to wholesale and retail companies with a price 20% lower than the market price, which generated millionaire profits. "The product is exempt from taxes to encourage education and culture, but ends up being diverted to the taxed paper market, resulting in unfair and fraudulent competition," says Andrade.

Source: Diário da Região (24/04)

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Camex approves anti-dumping tariff for steel tubes and magnets in China

(29/10 - Diário de Pernambuco)


Starting tomorrow (30th), steel tubes from China and ferrite magnets from China and South Korea will stop to enter Brazil. The Chamber of Foreign Trade (Camex) today approved (29) a resolution introducing an anti-dumping tariff for these products.

Commercial practice condemned by the World Trade Organization, dumping consists of selling goods below the market price to eliminate domestic manufacturers, who are unable to reduce production costs. To avoid unfair competition, the government has the right to apply the anti-dumping tariff to bring prices up to market levels.

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Unfair competition worries national fashion sector

fashionUnfair competition from products imported from countries that exploit low-paid labor is one of the concerns of the Brazilian fashion sector. The statement was made by Hildegard Angel, coordinator of the Zuzu Angel Fashion Committee of the Business Council for Culture of the Commercial Association of Rio de Janeiro (ACRJ), speaking to industry leaders at an event held in the capital of Rio.


Hildegard Angel opened a seminar promoted by ACRJ, whose purpose was to discuss the problems faced by the national fashion production chain. In 2012, the sector's turnover reached R $ 140 billion, placing Brazil in the eighth position in the world ranking.

Hildegard addressed the role of fashion as a driver of the country's economic development, with emphasis on fashion exports from the state of Rio de Janeiro.


She suggested the establishment of policies that defend the national labor and industry and that favor the productive sector and not only the financial sector.


For the coordinator, the policy that saves national production is that of the lowest interest rates. In addition, he suggested that the government should be attentive to policies that establish free trade with third countries, without paying taxes, “because all of this brings down Brazilian industry”.
Fashion exports in the state of Rio de Janeiro broke a historical record last year, reaching 15% of the total Brazilian sector foreign sales, with a high average export price.



Source: RAC Campinas SP 11/10/2014



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Government expands tax exemption for medicines

Source: Folha de S.Paulo - 27/04/2014

The Dilma Rousseff government (PT) decided to expand the list of substances used in the manufacture of medicines that are free from the collection of part of the taxes.

The expected impact, in practice, is a reduction of at least 12% in the prices of medicines containing the benefited substances.

The decision of the Dilma government comes just over three months from the elections and seven years after the last update of this list, which took place in 2007, during the Lula government.

According to Folha, the new list will be published on Friday (27), containing about 160 items. The antibiotic amoxicillin - used, for example, in cases of tonsillitis - is one that should be benefited.

The industry, which had been pushing for years to update the list, had the expectation that this new list would include up to 340 items.

The so-called “positive list” has existed since 2001 and brings together active ingredients of medicines considered as priorities and, many, of continuous use, such as antiallergic agents, vaccines and cancer drugs.

Medicines that contain the substances on this list have their PIS / Cofins taxes zeroed. Therefore, this impact of 12% in the price, according to the industry.

In the government's calculations, the update will generate a tax waiver of around R $ 20 million in one year.

The products benefited are red or black stripe medicines.

It is up to the official chamber that regulates drug prices to ensure that tax reductions are fully reflected in the prices set as a ceiling for products.

And the industry claims that, for reasons of competition in the market, these reductions are passed on to consumers in pharmacies and to governments in public purchases.

In a letter to an entity in the sector in 2011, the Ministry of Health stated that it had already asked the government's economic area to urgently update the list.

According to the industry, the gap prevented the price reduction of medicines with new substances and generated an unfair competition between products with similar medical indications, but that had different taxation.

Earlier this month, Sindusfarma (Pharmaceutical Products Industry Union in the State of São Paulo) went to the STF (Supreme Federal Court) in an attempt to have the Justice order President Dilma Rousseff to publish a new list. Today, there is no rule that defines the periodicity of the review.

"It will lower prices and expand access, in addition to avoiding unfair competition from products that are tax exempt against those that are not," says Nelson Mussolini, the entity's chief executive.

In the union's accounts, the price reduction in pharmacies and public purchases can reach an average of 33%, since, when the taxes are zeroed, there will be an impact on the collection of ICMS by the States.

Reginaldo Arcuri, executive president of the FarmaBrasil group, says that several entities in the sector had been negotiating, in the last two years, to update the list with the federal government.

California Attorney General's Office sues exporters for using irregular software

Textile manufacturers in India and China are being sued under allegations of unfair competition against US companies for using unlicensed software in the production of clothing exported to the State of California.

The lawsuits were filed in the Los Angeles County Superior Court against India's Pratibha Syntex Ltd. and Ningbo Beyond Home Textile Co. Ltd. and its sister companies in China, which allegedly violated California's Unfair Competition Act . Since 2010, they have exported tons of clothing products to the State together.

According to California attorney general Kamala Harris, responsible for the actions, the companies are said to be involved in unfair competition for using unlicensed software in their business operations, exporting products that competed with properly licensed California manufacturers. Among the software manufacturers affected by the non-payment of licenses to use software protected by intellectual property are companies such as Adobe, Microsoft and Symantec.

The measures taken by the authorities reinforce that companies in any country that do not use licensed software would benefit from an illegal cost reduction, which justifies concrete actions for the protection of companies in the segment that act in a lawful manner, respecting intellectual property.

These California lawsuits are in line with measures recently implemented by the Massachusetts State Attorney's Office, which in October last year entered into an agreement with a Thai seafood company based on unfair competition law. Under the agreement, the company had to pay a fine, in addition to regularizing the software licenses it uses in its commercial operations in Thailand. These measures by US Attorney Generals show increased awareness and trends in promoting fair competition.

An Orange Business Council study found that California has lost almost 400 jobs in industry and technology in the past decade to countries with piracy rates of up to 80%. This activity resulted in a loss of $ 1,6 billion in economic activity and $ 700 million in tax revenue for California.

“The current American defense scenario for fair competition is yet another reason for Brazilian companies to be motivated to use only licensed technology. This attitude can differentiate Brazil in the market compared to those that do not use licensed IT and protect business from possible interruptions ”, says Gérson Schmitt, president of the Brazilian Association of Software Companies (ABES).


Awareness of Brazilian entrepreneurs - local movement

"ABES is working in Brazil with education campaigns to ensure that Brazilian companies are fully aware of the barriers they may face in accessing the American market for not using legalized software, as well as the best opportunities for those that use only properly licensed programs" , says the president of ABES.

In 2012, ABES launched the Exporte Legal campaign in partnership with ETCO, the Competitive Brazil Movement (MBC) and the National Council to Combat Piracy (CNCP), with the aim of alerting and encouraging Brazilian entrepreneurs to take responsibility by your IT, through proper licensing.

For this year, the launch of the second phase of the campaign, which will focus on the Legal Entrepreneur, is encouraged, encouraging Brazilian entrepreneurs to create an environment of fair competition within the country. By strengthening legitimate national competition, these companies help Brazil to accelerate its growth and establish itself as a protagonist on the world stage.

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Chamber returns to analyze project on certification of imported product

Source: LegisCenter (São Paulo - SP) - 22/05/2012

The Chamber again analyzes Bill 717/03, by deputy Antonio Carlos Mendes Thame (PSDB-SP), which subjects imported products to the same rules defined for goods produced in Brazil. The proposal was approved by the Chamber in 2008 and returned from the Senate this year, after receiving amendments from senators.

The Chamber's text established, for example, that the import of products subject to the Federal Technical Regulation, listed in regulations, should obey the non-automatic licensing regime. The Senate changed the text so that compliance with this licensing regime is no longer mandatory to become a possibility.

Regarding the performance of the bodies responsible for the technical regulation of products that are in customs, the text of the Chamber said that this inspection was optional, after the beginning of the customs clearance. According to the Senate text, inspection becomes optional regardless of the initiation of customs clearance.

Importer's burden Another amendment made in the Senate determines that, if the goods are not in conformity with Brazilian rules, it will be up to the importer to bear the costs of storage at customs, as well as the burden of loss or destruction, when applicable. The Chamber's text did not provide for a charge in case of loss or destruction of the product.

Both the text of the Chamber and the Senate determine that the imported product in non-compliance with the Federal Technical Regulation is retained by the customs authority for a period to be determined by the competent inspection body or entity. Within this period, the importer may promote the adequacy or arrange for the repatriation of the product.

In the text approved by the Senate, the penalty was also maintained for anyone who presents false documentation or makes a malicious declaration regarding the regulation of the imported product. The responsible person may have the accreditation or the authorization to operate as a suspended or canceled importer.

Deputy Mendes Thame says that the approval of the proposal will guarantee more security for the consumer, in addition to combating unfair competition, mainly in relation to products from China and other Asian countries. “The project does not protect Brazilian industry. It just gives equality, equals the requirements for national and imported products. ”


Senate amendments will be analyzed by the Constitution and Justice and Citizenship commissions; Consumer Protection; Economic Development, Industry and Trade; and Environment and Sustainable Development. Then, they will be voted in the Plenary.

Government may restrict Chinese cell phone

Source: O Estado de S.Paulo

The Brazilian government can impose sanctions to stop the indiscriminate entry of Chinese cell phones into the country, which exploded in 2011 and threatens the local industry. A survey by the Brazilian Association of the Electrical and Electronic Industry (Abinee) to which the 'State' had access shows that China's participation in imported cell phones jumped from 54% in February to 85% in August last year.

National manufacturers accuse the Chinese of unfair competition, as devices are being imported at a cost of US $ 12, while in Brazil the lowest cost of producing these terminals is US $ 38.

There is a suspicion that Chinese factories are using the export benefit granted by the Chinese government to gain space in the Brazilian market. The Ministry of Development, Industry and Foreign Trade is investigating the case.

Imported cell phones, which represented 9% of the base of handsets sold in Brazil in 2009, jumped to 20% in the first half of 2011 and must have reached 35% at the end of the year. In 2011, 57 million devices must have been sold, of which 20 million are Chinese, according to Abinee's calculations.

Targets. The main targets of complaints are Chinese Alcatel One Touch, Huawei and ZTE, responsible for 95% of Chinese cell phone imports, a source in the sector said.

The terminals with functions for two or three chips represented the largest volumes of foreign purchases in 2011, with a jump of 346% compared to 2010. “The large volume of cell phones imported from China are popular, with functions for two or three chips and are not entering the market at the price they are produced ”, reinforced the source.

In the Abinee survey, the lowest handset prices were those of ZTE, which had more than 40% of the 2,24 million imported cell phones at prices ranging between $ 12,44 and $ 16,67. Huawei recorded the highest value of imported mobile phones: US $ 82,1 million, followed by Alcatel One Touch (US $ 50,4 million).

Brazilian manufacturers question the low prices charged by these companies. “Component prices are commodities. If the components represent 80% of the cost, how does a device arrive in Brazil for US $ 12? The cheapest way to get is US $ 27, ”said the source.

The government is concerned about the significant increase in Chinese cell phones at low prices in the Brazilian market. The data presented by Abinee are being analyzed by the Ministry of Development.

“The import of cell phones has attracted attention, as it is outside the curve. We are studying what measures will be adopted to preserve the competitiveness of the national industry, in case it is found that these cell phones are entering the market in a harmful way ”, warns Nelson Fujimoto, secretary of Innovation of the ministry. According to him, several companies approached the Ministry of Development, reporting that US $ 12 refers almost exclusively to the cost of the battery


Chinese companies reacted against accusations of unfair competition from domestic industry. The president of Alcatel One Touch, Marcus Daniel, told the State that the prices of handsets imported by the company are the result of big negotiations and the strategy of adopting a small profit margin and gaining volume.

“It is a legitimate strategy. Chinese importing companies can pay even more taxes than national ones, which even have certain incentives to produce in the country ”, said the executive. "We import by paying absolutely all taxes."

The executive says that Brazilian companies lost space in the market because they stopped producing popular cell phones, which despite the surge in smartphone sales, still represent about 75% of the market.

"If you do not offer cheaper devices, it is logical that you will lose 25% of the market", he provoked. “In my view, local manufacturers are wanting to have a market reserve and take away consumer options. This would be a bad deal for operators as well, ”he said.

The executive acknowledges, however, that the company adopted a more aggressive strategy in 2011. “We were more aggressive in terms of inventory, people, marketing, in everything. But it is nothing that puts the permanence of companies in the country at risk. Brazil is the ball of the day and everyone wants to have a stake in the country, ”he said.

He warns that if any action is taken against the import of cell phones, the consumer price will rise.

Contestation. Marcelo Najnudel, marketing manager for Huawei do Brasil's terminals area, disputes the import prices of mobile phones raised by Abinee. “The dollar FOB (reference price on imports) used by Abinee is not the value of the product's commercialization in Brazil. This value also includes import costs and others, which represent almost 60% more ”, he argues.

The executive maintains that, as long as all taxes due are paid, there is no unfair competition. Najnudel considers that it is even more advantageous to produce in China. “To compete on equal terms with the national industry, we would have to build a local plant. This is one of the plans, but until that happens, we will import. ” Sought for a week, ZTE did not respond.