Brazil loses R $ 287,9 billion to the illegal market

Brazil lost R $ 287,9 ​​billion to the illegal market in 2020, according to a survey that has been carried out since 2014 by the National Forum Against Piracy and Illegality (FNCP). The amount is the sum of the losses recorded by 15 industrial sectors (R $ 197,2 billion) and the estimate of taxes that are no longer collected (R $ 90,7 billion) due to this illegality. This average was made with the percentage of 46%, but there are products, such as cigarettes, in which the tax in Brazil can reach 90%.

The balance sheet shows a drop of 1,2% compared to 2019, when losses to the illegal market reached R $ 291,4 billion. The smuggling sectors that have the main illegality component decreased or remained at the same level in the last year - except for the cell phone sector where there was an increase.

This impact on the illegal economy is directly related to the confrontation of Covid-19 in the country and also in the countries where smuggling comes from, as is the case in Paraguay. The restrictive measures adopted to contain the spread of the virus - such as social isolation, which left the streets more empty, in addition to closed trade, the blocking of borders, as well as the rise in the dollar and the increase in seizures on the roads and highways of the country. country - affected the availability of the proceeds of crime. Cigarettes, the sector most affected by contraband, for example, lost R $ 14,2 billion last year. In 2019, it was R $ 15,9 billion.

According to Edson Vismona, president of ETCO and of the National Forum Against Piracy and Illegality, the pandemic affected all economic, legal and illegal activities. "We must be attentive to the resumption of the market and strengthen measures to combat the illegal by encouraging the legal market that invests in the country and generates jobs".

Sectors that suffer from the illegality generated within the country, for example, fuels, had a new increase, reaching the amount of R $ 26 billion - R $ 3 billion more in losses than in 2019. According to Vismona, this sector suffers mainly from illegal internal practices, such as “fraud, evasion, in addition to theft and fuel diversion in the pipelines”, says the president of the FNCP.

The FNCP survey has been carried out since 2014 and is based on data pointed out by the productive sectors themselves, which have their own metrics (research, market evaluation). The 15 segments covered by the FNCP study are clothing; glasses; cigarette; Cable TV; personal hygiene, perfumery and cosmetics; alcoholic beverages; fuels; audio-visual; pesticides; cell phones; imported perfumes; sports equipment; toys; software; and electronics (PCs, Servers, Networking, Printers / Toners / Ink Cartridges and Security Equipment).


In addition to economic losses, unemployment 

 A study by Oxford Economics pointed out that the consequences of illegality in Brazil go beyond the loss of taxes on production and on sales of the product, but also affect the generation of jobs. Only in the case of the illicit cigarette market, Brazil has stopped generating 173 thousand direct and indirect jobs, both in tobacco cultivation and in the manufacture and distribution of cigarettes. The study considered data from the national tobacco industry of 2019 - the last full year of 'normal' activity, unaffected by the impact of the coronavirus pandemic.

On the other hand, the study points out that the presence of a large and growing illicit sector may still represent an opportunity for Brazil: the replacement of the approximately 63,4 billion illegal cigarettes circulating in the country (Ibope Inteligência / 2019) by products products produced in Brazil would support an additional contribution of R $ 6 billion to GDP and support the creation of 173.340 jobs. The extra activity would also generate R $ 1,3 billion in additional tax revenue (tax revenue associated with employment and sustained activity).

The National Day to Combat Piracy

December 3 - National Day to Combat Piracy


by Edson Luiz Vismona, Evandro Guimarães and Márcio Costa de Menezes e Gonçalves


On December 3, 2015, we celebrate a decade of celebration of the National Day to Combat Piracy, an opportunity that makes us reflect on the progress achieved by our country in relation to the theme.

There is no denying that important advances have taken place, but not at the same speed as this type of crime grows and gains sophistication. We must remember the beginning of the activities of the National Council to Combat Piracy and Crimes against Immaterial Property - CNCP, in February 2005, contemporary to the constitution of the National Forum to Combat Piracy and Illegality - FNCP, an entity that gained much prominence in the confronting the crime of the century, as defined by Interpol.

The union of efforts between the Government and organized civil society, advocated by the CNCP, was the point of conquest of greater prominence, when it explicitly revealed that piracy affects the whole society, without sparing anyone. The Government is affected not only by the loss of revenue, but mainly by seeing piracy as a gateway to other crimes led by dangerous criminal organizations. The legal industry and commerce are severely affected by unfair competition, which has been closing jobs in our country year after year. Finally, consumers are affected by the low quality of counterfeit products, which often affect the safety and health of the population.

That is, only organized crime wins with piracy!

The Federal Revenue, together with the Federal Police and the Federal Highway Police, during these ten years, were the protagonists in facing this nefarious practice, despite a worrying lack of allocation of financial and human resources for the development of this strategic activity, especially with the gigantic our country's borders, which call for attention and for urgent reinforcement in their security and control of goods that are dumped in our market.

The creation of CERAD - National Risk Analysis Management Center, within the scope of the Federal Revenue, deserves a positive highlight, with very effective actions in the defense of fair competition, as well as the thematic Operations led by the Federal Highway Police, OTEFIS, which they traveled through several Brazilian states, training public agents and repressing the transit of illegal goods on our federal roads.

There was a lack of stronger action by States and Municipalities, with very few exceptions, in combating informal trade. Examples of good practices that deserve to be replicated were the actions of the police stations specialized in combating piracy in the states of Rio de Janeiro, Pernambuco and the Federal District and the city of São Paulo between 2010 and 2012 (today, completely abandoned by the current management).

In the retrospective of these ten years, more striking educational and economic actions were not identified, pillars that would bring a fairer and more balanced competition environment, as well as a faster progress of Law Projects, aimed at Intellectual Property, which have been underway for a long time. our National Congress. Hopefully, with the institution of the Joint Parliamentary Fronts for the Defense of Intellectual Property and Combating Piracy and Combating Smuggling and Counterfeiting, we will be able to advance in the federal legislature. The urgency is great. Perhaps these are fundamental points for us to seek evolution in the next decade, in addition to the repression, which now takes on a different shape.

In fact, we must not forget the need to repress crimes committed in the virtual environment, the so-called electronic crimes, which are growing rapidly and challenging the authorities, technicians and law enforcers. Recent actions led by the Federal Police have dealt a serious blow to gangs that use the digital environment to commit serious crimes against copyright holders. Especially Operations “Fake Sat” and “Blackbeard”, were relentless in facing these crimes, dismantling powerful gangs that committed crimes over the internet, giving society the feeling that there is light at the end of the tunnel. With intelligent and very well articulated actions, we revere the work of the federal authorities involved in conducting these actions.

The crime will not win justice, to paraphrase Minister Carmen Lúcia. The Brazilian legal market must be defended.

For a retrospective of these ten years of the National Day to Combat Piracy, the Brazilian Bar Association, São Paulo Section, together with the National Council to Combat Piracy, will promote, on this December 3rd, in the noble hall of OAB / SP , an important event that will analyze the progress achieved, and the new challenges of the next ten years to come, an event that has the support of several entities that deal with the theme, and that will also bring an interesting exhibition of counterfeit products. It is worth checking.

We will continue to support all manifestations of valorization of Intellectual Property in our country, and may the next decade come!

Edson Luiz Vismona - President of the National Forum Against Piracy and Illegality and of the Instituto Brasil Legal, he was Secretary of Justice and Defense of Citizenship of the State of São Paulo.

Evandro do Carmo Guimaraes - Executive President of the Brazilian Institute of Ethics in Competition - ETCO.

Márcio Costa de Menezes and Gonçalves Partner at Siqueira Castro Advogados, in the area of ​​Intellectual Property, President of ICI - Intellectual Capital Institute, Legal Director of ABRAL - Brazilian Licensing Association, and Deputy Director of International Relations and Foreign Trade at CIESP - Center of Industries of the State of Sao Paulo. He was Executive Secretary of the National Council for Combating Piracy, of the Ministry of Justice.

VIII Triple Border Seminar

Discuss ways to combat smuggling that enters Brazil from southwestern Paraná. This is the objective of the VIII Triple Border Seminar, which takes place on October 22, in Foz do Iguaçu. The event is held by the National Forum Against Piracy and Illegality (FNCP) and is supported by ETCO-Brazilian Institute of Ethics in Competition.

The Seminar will feature lectures by representatives of agencies working in the fight against smuggling and experts on the subject. More information on FNCP website.

Date: 22 / 10 / 2015

Location: Hotel Golden Tulip - Foz do Iguaçu - PR

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Piracy of medicines

According to data now presented by the National Forum to Combat Piracy, the revenue of contraband, counterfeit and pirated products on the black market of medicines reached R $ 30 billion last year. Illegal products represent, as a whole, the loss of tax collection of around R $ 9 billion per year.

In the case of fake drugs, the situation becomes even more serious, due to the harmful direct effects that they cause on the health of the population. These drugs represent, in an absurd way, 20% of the total market in the sector and a tax evasion of R $ 5 billion, double the world average, according to the World Health Organization (WHO).

Source: Diário do Nordeste (25/01)

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Internet piracy already moves R $ 800 million in the country

highlight_pirateThe internet has created paths for piracy. Trading of pirated products over the internet increased by 30% in the country this year, with an estimated annual turnover of R $ 800 million - including the figures for purchases and sales -, according to the National Forum Against Piracy and Illegality (FNCP), which launches today, National Day to Combat Piracy, the Click Original Portal. The site will gather information on the practice of online piracy in order to anticipate criminal behavior and identify sectors of the most vulnerable markets and recurring routes.

Source: Diário do Comércio - 4/12

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