Regulatory News


The smuggled cigarette market continues to grow in Brazil at a disturbing rate. According to research by Euromonitor International, the country is the second largest consumer of illegal cigarettes in the world, with an average of 41% of the total sold in its territory, being surpassed only by Malaysia, with 51%.

The same survey indicates that, last year, illegal trade in tobacco increased by 8%, while legal sales fell by 14%. The economic crisis facing the country is one of the reasons for this growth because the smuggled the product is cheaper due to lack of taxes which are normally high.

However, there are also flaws in surveillance, even with investigations such as the one that arrested 10 people at the end of June, dismantling an international smuggling ring that was making R$22 million ($7 million in US dollars) a month.

© 2007 CRE Brazil - All Rights Reserved.