Regulatory News
January 16
Cigarettes smuggled from Paraguay to Brazil affect more than the economy with the loss of taxes and damages to competitiveness. A study by the State University of Ponta Grossa, Parana showed that Paraguayan cigarettes have high concentrations of heavy metals, with levels up to 11 times higher than those legally manufactured in Brazil.

Tests also found traces of mouse hair, cockroach legs and mite colonies in Paraguayan cigarettes seized by Brazilian authorities. President of the Brazilian Institute of Competitive Ethics (ETCO) and the National Forum Against Piracy and Illegality (FNCP), Edson Vismona, defends a major joint action to combat cigarette smuggling. "You cannot accept situations like these anymore. It is necessary to promote the union of forces between public power and organized civil society to find solutions to this problem," he said.
January 08
Contraband cigarette sales in Brazil in 2017 reached 48% of the market, the highest index ever recorded. This percentage shows how much the illegal product in the country has grown: in2015 it was 30% and last year it was 45%. The data is part of a survey by the Forum against Piracy and Illegality (FNCP).

According to Edson Vismona, president of the Forum and the Brazilian Institute of Competitive Ethics (ETCO), with the smuggling of cigarettes alone, didn’t collect about R$6 billion (US$1.9 billion) in taxes.

The survey indicates the origin of most of the products is Paraguay. The best-selling cigarette brand in Brazil is Eight, produced by Tabacalera del Este, a company owned by Paraguayan President Horacio Cartes.
December 27
The Federal Court sentenced four who were arrested in July for smuggling cigarettes in Minas Gerais. In addition to having to serve the prison sentence, they will be required to pay a fine of R$1.37 million (US$410,000), corresponding to the value of taxes on smuggled cigarettes.

Two of the prisoners were carrying a shipment of 550,000 packs produced in Paraguay. With them, a truck that had been stolen in Sao Paulo was also seized. The other two detainees were caught with a cargo of 497,000 packs also produced in Paraguayan factories.

© 2007 CRE Brazil - All Rights Reserved.