Regulatory News

An illegal cigarette factory was discovered by police in a plantation in Areiópolis, 271 kilometers from Sao Paulo. At the site, officials were surprised by the large quantity of cigarette packages ready for distribution and sale. Most were to go to São Paulo and the northeast of the country.

Officers found machines valued at R$7 million (US$4 million), demonstrating that the factory had a production capacity on a large scale. What also drew the attention of investigators was the large amount of counterfeit Internal Revenue Service stamps used to seal the product and simulate paid Industrial Production Tax (IPI).

The shipment was to leave the farm hidden among crates of cucumbers so as not to raise suspicion of inspectors. The property was guarded by security cameras. The police arrived on the scene thanks to an anonymous tip.

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