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.