Regulatory News

The Brazilian Institute of Competitive Ethics (ETCO) and the City of São Paulo launched a movement to combat smuggling and the sale of counterfeit products. The goal is to attract the largest cities in the country, where illegal trade is stronger. In Brazil, this market generates a loss of R$49 billion (US$16 billion) in tax revenue each year, according to a survey by the National Fund Against Piracy and Illegality.

The plan, prepared in partnership with business entities, provides for an integrated action of federal, state and municipal bodies, with the creation of a committee that will outline actions to combat the illegal activities. Sixteen areas of the economy highly affected by smuggling and counterfeiting have already been identified. One area is the cigarette industry. "In addition to currency evasion, this problem increases unemployment," says Liel Miranda, president of Souza Cruz, the country's largest cigarette maker.

© 2007 CRE Brazil - All Rights Reserved.