Regulatory News

A news report on the Globo News TV revealed the backstage of cigarette smuggling from Paraguay to Brazil. The main crossing is the Paraná River, which makes it possible to get to Iguassu Falls and other cities along the border between the two countries. In this region, the merchandise is transported by truck and then spreads throughout the country, mainly supplying street trading points.

Federal police heard in the report say these are the same routes used by drug and arms traffickers, which often act in partnership with cigarette smugglers. To do this, they use boats, trucks, buses, pickups and cars.

Of the estimated 65 billion illegally-made cigarettes produced each year in Paraguay, 60 billion are illegally exported to Brazil, representing around R$4 billion in Brazilian currency (U.S. $ 2.5 billion) in unpaid taxes. Just between January and April this year, the Federal Police have seized 52 million illegal packs of cigarettes.

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