Tag: smuggling

26% of cigarettes consumed in Acre are smuggled

the-tribune-onlineThe cigarette market in Acre is dominated by 26% of imported cigarettes, illegally. In 2012, this percentage was 9%. Because of the lower price compared to national products, due to the non-collection of taxes, illegal tobacco brands gain market with each passing year, according to Datafolha research.

Street vendor Rosa Maria says that the cigarettes most sold by her are those imported illegally from Bolivia. According to Rosa, customers complain a lot about prices, because the difference between imported and domestic products can exceed R $ 6,00.

o Rua de Benjamin Constant, close to the Urban Terminal, it is common to find illegal cigarette sellers in the morning. Cigarettes are smuggled from Bolivia and sold in Brazil illegally.

Every year, Brazil loses about R $ 115 billion with the trade in illegal goods, an amount sufficient to build 974 hospitals or 57 thousand daycare centers, or 22 thousand public schools.

“The survey shows that the main stimulus to smuggling is the difference between the price, the result of the financial advantage that criminals have due to the tax disparity between Brazil and Paraguay. In other words, greater inspection at the borders and revision of taxes on national products are necessary so that we have full legality in the internal market and more security ”, ponders Edson Vismona, president of the Brazilian Institute of Ethics in Competition.

In a note, the IRS says that smuggling feeds a chain of organized crime, causes tax evasion, harms national industry and job creation. And it still feeds the informal market, with low quality products that do not respect copyright. This creates unfair competition with local retailers and industries. In many situations, these products can even harm consumers' health.

Source: A Tribuna Online (Rio Branco - AC), 13/11/2016

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Contraband advances in Santa Catarina


In an article published in the newspaper Diário Catarinense, on 8/11, Edson Vismona, president of ETCO, talks about the problem of smuggling and what is needed to face it.

daily-caterinense

Contraband advances in Santa Catarina

 

 

Cigarette smuggling is now one of the most serious issues, and Brazil is one of the most affected by this illicit market.
To get an idea of ​​the extent of the problem, 22% of Santa Catarina's cigarette market is dominated by illegal brands.

This illicit trade directly affects tax collection, public policy development, consumer health and job creation in the state of Santa Catarina. However, the situation is even more serious. This is national security, as organized crime is dominating the borders of Latin American countries.

In this context, smuggling is no longer just a local concern and has taken on a continental dimension. It is estimated that every year in Latin America, between 0,9% and 2% of GDP is lost due to illegal trade. To try to find alternatives to fight these illicit acts, the Latin American Anti-Smuggling Alliance was created, composed of 15 countries.

The Alliance's first meeting was held in early October in Bogotá, the Colombian capital, to discuss and establish shared actions that allow greater control over the illegal trade in cigarettes, textiles, beverages, food, plastics and metals.
Based on the discussions, an action plan against illicit trade was formalized and presented during the 25th Iberoamerican Summit of Heads of State and Government, which was held in Colombia in late October.
One of the main causes for the increase in smuggling is the staggering difference in product prices, the result of absolutely unequal tax policies between countries. To try to reverse this scenario, it is necessary to calibrate the tax burden and combat the massive supply of illegal products.

By participating in the initiative of the Latin American Anti-Smuggling Alliance, we identified an opportunity for the countries involved to find ways to combat illegal activity, which does not respect borders, governments and police authorities.
Without coordinated work, we will hardly be able to overcome this great transnational challenge. Articles containing between 2.050 and 2.140 characters will be published in this space. Smuggling is no longer just a local concern and has taken on a continental dimension

 

Forum in RN discusses losses from piracy, which generates losses of R $ 115 billion per year

Figures from the illegal market were presented in Brazil in a special focus, a project by Fecomércio RN, in this edition carried out in partnership with the National Trade Confederation and the National Forum Against Piracy and Illegality

By Redaction

Smuggling and piracy in Brazil generate losses of over R $ 115 billion per year to the country's economy and society. The significant number was presented this Monday (7) during Brasil em Foco, by the president of the National Forum Against Piracy and Illegality (FNCP), Edson Vismona. In addition to these data, other figures were exposed, as well as the reality of illegal trade in Brazil, during the event promoted by the Federation of Commerce of Goods, Services and Tourism of RN (Fecomércio RN), which took place at the Best Western Premier Majestic Hotel, in Ponta Negra, and in this edition it had the partnership of the National Trade Confederation (CNC) and the FNCP.

Vismona, who is also president of the Brazilian Institute of Ethics in Competition, detailed that of the R $ 115 billion that formal commerce fails to earn, R $ 80 billion are resources from 18 economic sectors, such as clothing, cigarettes and the pharmaceutical industry, for example, and the remaining R $ 35 billion related to tax evasion. “These volumes are not at all insignificant. These are losses for Brazilian society and are products that affect our health, our safety and impair competitiveness. Illegal competition to our trade and industry ”.

Source: Portal no Ar website (8/11)

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The impact of smuggling on the reality of Brazilians

In an article published in the newspaper A Tribuna, in Espírito Santo on 14/10, the President of ETCO, Edson Vismona, talks about the conclusions of the Datafolha survey on smuggling and what is needed to fight it.

 

The impact of smuggling on the reality of Brazilians

by Edson Vismona

An unprecedented survey commissioned by the Brazilian Institute of Competitive Ethics (ETCO) for Datafolha brings surprising data. The survey of more than 900 people in the Southeast of the country shows that the majority of respondents (75%) believe that the entry of smuggled products in the country favors the growth of violence and crime.

And even more alarming: even in the face of this information, most respondents recognize that they will continue to buy illegal goods.

But what makes the smuggled product so attractive? Another question asked in the research can elucidate this question: the high taxes practiced in Brazil. For 86% of respondents, the increase in taxes on Brazilian products favors the entry of contraband products. This is because due to taxation, the national product generally costs more. It is the question of price.

Take for example the most smuggled product to Brazil, cigarettes, in which the tax burden can exceed 80%. It is not difficult to conclude why, currently, 30% of the Brazilian mark is dominated by contraband brands, generating, in 2015 alone, tax evasion of R $ 4,9 billion to public coffers. Currently, 19% of the Espírito Santo cigarette market is dominated by illegal brands.

Between 2012 and 2015, the smuggled cigarette market jumped 6% in the state, while the formal market suffered a similar contraction. while brands like Gifty and Bill are sold for an average price of R $ 3,77 - below the minimum price of R $ 5,00 established by law - the state accounts for losses of R $ 75 million, just due to tax evasion between 2012 and 2015. Therefore, they lose the government and the population and the criminals, extremely successful in their business, carried out on the margins of any Law, win.

It is certain that a tax measure would be of great help and could have significant effects. In the case of cigarettes, specifically, such a measure should seek a balance that would allow the effectiveness of tax adjustments in terms of reducing consumers from the legal to the illegal market, as recommended by the WHO itself.

In addition to the tax issue, the fragility of borders also needs to be fought, as it represents one of the main opportunities to face this crime. Specifically in relation to this point, the federal government has already been sensitized and determined the creation of a working group formed by several ministries related to the subject. A recent report by the Federal Court of Accounts (TCU) pointed out several opportunities for efficiency and, mainly, governance for the resolution of the border problem, which is of public interest and national sovereignty.

In the fight against smuggling, it is necessary, however, that the authorities, both at the federal and state levels, understand what society has already understood: tax increases are no longer tolerable and the government has a fundamental role in the establishment of an environment of legality and fair competition in the Brazilian domestic market.

Contraband advances in Campinas

In an article published on 28/10, in the Correio Popular de Campinas newspaper, the President of ETCO, Edson Vismona, talks about the first meeting of ALAC - Latin American Anti-Smuggling Alliance, the danger that smuggling poses, in addition to providing specific data on Southeast region.

Contraband advances in Campinas

by Edson Vismona

Cigarette smuggling is now one of the most serious issues and Brazil is one of the most affected by this illicit market. To get an idea of ​​the extent of the problem, 30% of the Brazilian cigarette market is dominated by brands from Paraguay, who enter the country without paying taxes, without generating jobs and still do not respect the rules of health surveillance.

Currently, 41% of the São Paulo cigarette market is dominated by illegal brands. Of the 10 best-selling brands in the state, two are from the illegal market, with the Paraguayan brand Eight leading the market with a 25% share of sales. In addition, the average price of the smuggled pack is R $ 3,00, an amount 60% lower than the legal minimum price for cigarettes in the legal market.

In 2015, the sale of contraband cigarettes grew by 18% in relation to 2010, which represented a tax evasion of R $ 748 million to public coffers, money that could have been invested in areas such as health, safety, housing, among others. public policy.

In Campinas the situation is also serious, since 37% of the cigarettes sold are smuggled from Paraguay. The city is also an important central point in the distribution of smuggled cigarettes in the State of São Paulo. Cities like Limeira, Tietê, Salto, Jundiaí, Bragança Paulista, among others, receive loads of contraband cigarettes from Campinas

This illicit trade directly affects tax collection, public policy development, consumer health and job generation in the state of São Paulo. However, the situation is even more serious. We are also dealing with national security, since organized crime, which feeds on smuggling, is dominating border regions in Brazil and in other countries in Latin America.

In this context, smuggling is no longer just a local concern and has taken on a continental dimension. It is estimated that each year in Latin America, between 0,9% and 2% of GDP is lost due to illegal trade. In order to try to find alternatives to fight these illicit acts, the Latin American Anti-Smuggling Alliance was created, composed of 15 countries: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Mexico, Panama, Paraguay, Peru , Uruguay and Venezuela.

The first meeting of the Alliance was held in early October in Bogotá, the capital of Colombia. Representatives of governments, civil associations, companies and trade unions in the member countries met to discuss and establish shared actions that allow greater control over the illegal trade in cigarettes, textiles, beverages, food, plastics and metals.

Based on the discussions, an action plan against illicit trade, covering several proposals evaluated at the meeting, will be formalized and presented during the XXV Iberoamerican Summit of Heads of State and Government, which will be held in Cartagena, Colombia, on the 28th and October 29.

It is worth remembering that one of the main causes for the increase in smuggling is the startling difference in the prices of products, the result of absolutely unequal tax policies between countries. While in Paraguay cigarettes pay taxes that do not exceed 16%, in Brazil this percentage can reach more than 80%.

In other words, the higher the tax burden on national products, the more competitive the illegal product becomes and the more the population suffers from the increase in crime, drug and arms trafficking.

To try to reverse this scenario, one of the measures proposed during the Alliance workshop is cooperation between countries for a tax calibration with the aim of reducing the enormous advantage that smugglers have over national industries. Another cause that must be tackled is the massive supply of illegal products. Intelligent coordination between countries is needed, with online information exchange and structured actions to control free trade zones and customs regimes.

By participating in the initiative of the Latin American Anti-Smuggling Alliance, we have identified an opportunity for the countries involved, including Brazil, to find common ways to combat illegal activity, which does not respect borders, governments and police authorities. Without coordinated work, with intelligence and mutual cooperation, we will hardly be able to overcome this great transnational challenge.

* Edson Vismona is president of the Brazilian Institute of Ethics in Competition (ETCO) and of the National Forum Against Piracy and Illegality (FNCP)

 

FECOMÉRCIO / RN promotes debate on competitive ethics and the defense of the Brazilian legal market

ETCO President, Edson Vismona, in a debate promoted by FECOMÉRCIO do Rio Grande de Norte
ETCO President, Edson Vismona, in a debate promoted by FECOMÉRCIO do Rio Grande de Norte

The president of ETCO and FNCP, Edson Vismona, gave the opening lecture of the meeting that the FECOMÉRCIO of Rio Grande do Norte promoted with state and capital authorities, Natal. The theme was “Competition Ethics and the Defense of the Brazilian Legal Market”. The following authorities participated:

Federal Deputy Efraim Moraes Filho, president of the Parliamentary Front to Combat Smuggling; Dr André Horta, Rio Grande Norte Taxation Secretary; Marcelo Queiroz, president of FECOMÉRCIO / RN; Antônio Fernandes, Municipal Secretary of Public Services of Natal; André Roncato, from the National Trade Confederation; Councilor Haroldo Alves; João Felipe Filho, Head of Customs Inspection at the Federal Revenue Service; João Bosco Vasconcelos, Delegate for Defrauding the Civil Police; Dr. Luiz Fabiano Pereira, labor attorney.

After debates, the institution of a Council to Combat Piracy and Illegality was supported, with the participation of the institutions that participated in this important meeting. During his visit to Rio Grande do Norte, the president of ETCO and FNCP also participated in Bom Dia RN, on TV Globo.

Edson VI
Edson Vismona, President of ETCO, in an interview with Bom Dia RN

The impact of smuggling on the reality of Brazilians

Edson Vismona

One of the unpublished research commissioned by the Brazilian Institute of Competitive Ethics (ETCO) for Datafolha brings surprising data. The survey carried out with more than 900 people from the south-east of the country shows that the majority of respondents (75%) believe that the entry of smuggled products in the country favors the growth of violence and crime. And even more alarming: even in the face of this information, most respondents recognize that they will continue to buy illegal goods.

But what makes the smuggled product so attractive? Another question asked in the research can elucidate this question: the high taxes practiced in Brazil. For 86% of respondents, the increase in taxes on Brazilian products favors the entry of contraband products. This is because, due to taxation, the national product generally costs more. It is the question of price.

Take for example the most smuggled product to Brazil, cigarettes, where the tax burden can exceed 80%. It is not difficult to conclude why, currently, 30% of the Brazilian market is dominated by smuggled brands, generating, in 2015 alone, tax evasion of R $ 4,9 billion to public coffers.

Currently, 19% of the Espírito Santo cigarette market is dominated by illegal brands. Between 2012 and 2015, the contraband cigarette market jumped 6% in the state, while the formal market suffered an equal contraction. While brands like Gifty and Bill are sold for an average price of R $ 3,77 - below the minimum price of R $ 5,00 established by law - the state accounts for losses of R $ 75 million, just due to tax evasion between 2012 and 2015. Therefore, they lose the government and the population and the criminals, who are extremely successful in their business, carried out on the margins of any Law, win.

It is certain that a tax measure would be of great help and could have significant effects. In the case of cigarettes, specifically, such a measure should seek a balance that would allow the effectiveness of tax adjustments in terms of reducing consumption, without, however, causing the migration of consumers from the legal to the illegal market, as recommended by the WHO itself.

In addition to the tax issue, the fragility of the borders also needs to be combated, as it represents one of the main opportunities to face this crime. Specifically in relation to this point, the federal government has already been sensitized and determined the creation of a working group formed by several ministries related to the subject. A recent report by the Federal Court of Accounts (TCU) pointed out several opportunities for efficiency and, mainly, governance for the resolution of the border problem, which is of public interest and national sovereignty.

In the fight against smuggling, however, it is necessary that the authorities, both at the federal and state levels, understand what society has already understood: tax increases are no longer tolerable and the government has a fundamental role in establishing an environment legality and fair competition in the Brazilian domestic market.

vismona_menor-still
Edson Vismona is executive chairman of ETCO - Brazilian Institute of Competition Ethics

Article published in the newspaper A Tribuna (ES) on 14/10/2016

Tax Burden Seminar in Brazil

The seminar Correio Braziliense: Tax Burden in Brazil was held on September 20 in Brasilia, a partnership between the newspaper, ETCO and the National Forum Against Piracy and Illegality (FNCP). The event was an opportunity to discuss the need to revise the tax structure as a way to boost the growth of the national economy, and brought together experts and authorities on the subject.

For the Federal Revenue Secretary, Jorge Rachid, it is necessary for the country to adopt a more rational tax model. "It is necessary to balance the rates on some products to minimize the growth of smuggling, tax evasion and other illegal practices," said the secretary.

The Brazilian tax burden, which today corresponds to 32,66% of GDP, has a harmful effect on the economy and is a source of stimulus for the unbridled growth of the illegal market. In the cigarette sector alone, the product most impacted by smuggling, the tax evasion verified in 2015 due to this crime was R $ 4,9 billion.

Edson Vismona, president of the FNCP and who this month also assumed the executive presidency of ETCO, recalled that the increase in cigarette taxes in recent years has contradicted government expectations. "The result of this policy was an 8% reduction in the market for legal products, but a 9% growth in the Paraguayan cigarette market," he said.

Vismona also recalled that the losses are not restricted only to the country's economy, but have negative effects on the health of the population, since these products do not respect the rules imposed on Brazilian companies by health authorities, and also on safety in cities, as this it is an activity dominated by criminal factions.

In 2015, Brazil recorded a loss of R $ 115 billion due to the illegal entry of illegal products into the country, which includes losses from the national industry and taxes that are no longer collected due to smuggling, among others.