Tag: Combating illegal trade

For the defense of the legal market

EDSON LUIZ VISMONA President of the National Forum Against Piracy (FNCP) and Instituto Brasil Legal

EVANDRO DO CARMO GUIMARÃES Executive President of the Brazilian Institute of Competition Ethics (ETCO)

Piracy, counterfeiting and smuggling of the most diverse consumer goods have been increasing in Brazil and are present in the daily lives of Brazilians, reaching the most diverse productive sectors: medicines, clothing, cigarettes, toys, drinks, optical products, CDs, DVDs and an endless list that arrives at homes without control and with risks to the health of each citizen.

Sometimes society has a hard time understanding the damage caused by these illegal activities. If we consider, for example, the 13 sectors of the economy most impacted, as demonstrated by the National Forum Against Piracy and Illegality (FNCP), the accumulated losses reached RS 24,5 billion in 2012. For 2013, the data in the final stage of survey point to more than RS 30 billion. Not to mention tax evasion, loss of formal jobs and the worrying fact that consumers are at the mercy of products harmful to health.

In a study conducted by the State University of Ponta Grossa with contraband cigarettes (which are not subject to inspection), the health control agency verified the presence of heavy metals in large quantities, increasing the risks for consumers. The same occurs with drugs, especially those aimed at combating more complex diseases, which, because they are more expensive, attract criminals who sell placebos as if they have an active element.

What many are also unaware of is that the trade in illegal products is linked to a series of much more serious crimes, such as trafficking in arms, ammunition and drugs, money laundering, theft, kidnapping and human trafficking. Behind the purchases made in street vendors, there is the performance of sophisticated criminal networks that move billionaire sums supplying illegal products - in the city of São Paulo alone, between 2010 and 2012, more than RS 2 billion in goods were seized. In the Federal District, in 2013, 1,23 million.

The financial movement overcomes drug trafficking and fuels crime in the most profound actions. Not only. It directly affects industry and commerce, which have rules to ensure the safety and reliability of products, in addition to being the tool for sustaining millions of legal workers.

Another serious problem is the Brazilian borders, which need to stop being land without law. For that to happen, specific actions are not enough. It takes coordinated action by governments at all levels, and work on the most diverse fronts to make criminal activities that undermine the country's security unfeasible.

In an election year in which we have the challenge of electing president, governors, senators, state and federal deputies, and in a political scenario in full swing, the Brazilian Institute of Competitive Ethics (ETCO) and the National Forum Against Piracy and Illegality ( FNCP), along with productive sectors of the economy, decided not to be oblivious to the debate. The theme is complex and involves several aspects, such as border security, the defense of consumers' rights and health, the protection of the national industry against unfair competition and the preservation of the consumer market.

In this sense, we call on candidates to make commitments that guarantee rights and combat unacceptable misconduct in a country with territorial, population and economic dimensions like the Brazilian ones, in order to protect the internal market. We propose to future governments a systematic effort to combat smuggling, piracy and counterfeiting in order to defend industry and national trade.

The reality of illegal trade in Brazil has reached a level that requires a change in posture not only by the authorities, but by the whole of society. We need intelligence, tenacity, political and administrative will to protect the internal market. Our commitment is to defend national interests and fight against all types of illegality.

Source: Correio Braziliense newspaper

Click here and check the entire letter of commitment

Read also In defense of the Brazilian legal market

In 4 years, more than 100 thousand counterfeit beer bottles in Brazil

Remove the label and cap from a cheap beer, and stick the label and cap from a more expensive beer on it. Technically, it is not a complex process. Easy, even, considering that it brings three-digit profits. This was what a supposedly peaceful merchant from the Jardim Romano neighborhood, in the East Zone of São Paulo, was doing, according to agents from the State Department of Criminal Investigations (Deic) who arrested him. He took bottles from a small brewery from the city of São Paulo of the same name, and made them pass through two of the beers with the greatest participation in the Brazilian market.

In May, five people were arrested by PMs from São Paulo, in a house in Ferraz de Vasconcellos, a city in the São Paulo Metropolitan Region. Two 20-year-olds and one 18-year-old caught with 64 crates of beer said they had been hired three months ago by the two property owners to basically do the same thing, replacing the cheapest labels and caps with the most expensive ones. In July last year, the same Deic had already arrested a bricklayer who worked in a similar way on Avenida Parada Pinto, in Vila Nova Cachoeirinha, in the north of the city.

It is a situation in which the consumer loses, who buys a cat in a poke, and the companies, which not only stop selling their products but also have the brands improperly transmitted. The country's largest consumer market, São Paulo, no wonder, seems to be a constant target of counterfeiters, but it is far from being an exception. In the past four years, civilian and military police officers across the country have dismantled at least 17 schemes for this type of crime in seven states and the Federal District, according to a survey by Dois Fingers in Collar with police sources and online journals across the country.

In 2014 alone (which is not over yet, as we know), I was able to identify 6 different cases, the same number as in 2013. Another 3 cases were reported by the authorities in 2012 and 2 in 2011. In total, 50 people were arrested, including three minors. age (which are “apprehended” to use the correct technical term). The volume involved in these frauds is 101,8 bottles, or just over 60 liters.

I know the number is impressive, but let's take it easy with Andor, drinkers. Brazilian beer production is almost 14 billion liters per year, according to data from the Beverage Control System (Sicobe), therefore, the total volume of counterfeits represents only 0,0004% of the total. It is a drop in the ocean of beer consumed by Brazilians. Considering that the four largest companies in the sector in the country produce 97% of the beer on Brazilian lands, according to their association, CervBrasil, there is another practical limitation on the scope that fraud can have.

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Source: O Globo Online

Seizures totaled US $ 62 million in the first half of the year

The seizures of goods and vehicles carried out in the first six months of 2014 by the Federal Revenue Service of Brazil in Foz do Iguaçu totaled US $ 62,1 million (approximately R $ 138 million), an amount that is 22% higher than that recorded in the first semester of the previous year. Most of the seizures were carried out within the scope of the Armored Frontier operation, which was developed on a permanent basis by the Federal Revenue units.

Cigarettes, electronics and vehicles together accounted for more than 80% of the total seizures recorded in the first half. Compared to the same period of the previous year, vehicles had a reduction in seizures of around 30%, electronics had a reduction of 40% and cigarettes had an increase of 442% in the period.

From January to June 2014, 335 operations to repress customs illicit acts were carried out by the Federal Revenue Service of Brazil in Foz do Iguaçu, in practically all municipalities located in the area where it operates. Much of this work was carried out jointly with partner agencies that work to combat the crimes of contracting and embezzlement and drug and arms trafficking.

Below is a detailed table containing the values ​​of seizures made in the first half of 2014 and the percentage evolution in relation to the same period in 2013:

SURVEY RESULT

(Seizures of Goods)

 Type of Goods

Amounts in US $

% Share in 2014 total

Evolution%
compared to 2013

Total 1st sem. 2013

Total 1st sem. 2014
Beverages

220.351,00

179.015,00

0,29%

-19%
Toys

918.520,00

718.690,00

1,16%

-22%
Cigars

5.729.348,00

31.047.022,00

50,00%

442%
Electronics

12.070.776,00

7.229.050,00

11,64%

-40%
Computer Technology

3.866.411,00

2.735.398,00

4,40%

-29%
Pharmaceutical products

686.579,00

423.988,00

0,68%

-38%
Recorded Optical Media

110.094,00

237.924,00

0,38%

116%
Virgin Optical Media

156.953,00

134.202,00

0,22%

-14%
Perfumes

1.161.336,00

1.091.901,00

1,76%

-6%
Watches

1.435.201,00

929.403,00

1,50%

-35%
CLOTHING

1.923.823,00

1.438.246,00

2,32%

-25%
Other Goods

6.658.786,00

4.793.697,00

7,72%

-28%
Vehicles

15.901.922,00

11.133.331,00

17,93%

-30%

TOTAL

50.840.100,00

62.091.867,00

100,00%

22%
In addition to goods and vehicles, the following quantities of drugs, weapons and ammunition were seized in the first half of 2014:

 

Drugs / Weapons / Ammunition

Un. Measure

Qty
Perfume Launcher

jar

70
Marijuana

kg

1.128,33
Cocaine

kg

9,82
Hashish

kg

24,43
Crack

kg

21,48
Ecstasy

un

400
Ammunition

un

1.040
Weapons

un

13
Source: FNCP - National Forum Against Piracy and Illegality

The hateful trade in fake medicines

It is notorious to sell fake, counterfeit and pirated products worldwide. Formal industry and commerce, which paid high taxes (especially in Brazil), are hampered by unfair competition from opportunists who, outside the law and in total disrespect to the consumer, obtain great advantages, harming the whole society. The important thing for these criminals is to make money - a lot, no matter how.

And when it comes to earning a lot, it is a lot: it is estimated that this illegal market moves around R $ 13 billion a year in Brazil - taking into account only medicines. The most expensive remedies (fighting cancer, for example) and the most sought after (treatment of erectile dysfunction, weight loss, anabolic steroids) are those that suffer most from counterfeiting. And, in fact, the high taxation (on average 34%) on medicines reinforces the immense profitability of crime merchants.

When it comes to medicines, this perverse marketing gains an aggravating factor. In addition to economic and tax issues, we have the damage of what is most important: health. An example of this brutality was harshly presented at the Piracy CPI, in 2013, at the Chamber of Deputies. In one of the statements, a criminal exposed, with great coldness, a terrifying logic. Asked why he forged cancer-fighting drugs, he replied: "They are the ones that make the most profit."

It is important to note that the consumer has an essential role in combating this illegality and immorality. Understanding all stages of the legal process is part of raising awareness. First, it has a very high investment in research, tests and improvements carried out for years; sometimes unsuccessfully, representing the loss of all investment to approve a molecule.

After this stage, another process begins: that of validation by the health and health surveillance agencies, which also consume time, human and financial resources and the registration of trademarks and patents. Once approved, we have the manufacturing, marketing and distribution in complex logistics and, of course, the payment of taxes, licensing fees and social contributions resulting from formal employment relationships. Finally, it is worth remembering that companies engaged in research, manufacturing, marketing and distribution are registered and known, and can be easily found and, if necessary, brought to administrative and judicial levels.

On your side, the criminal. Without any investment, those who have proven acceptance by the market will falsify the medicine. Withholding taxes, no formal employees, taking advantage of underemployment and even slave labor, in addition to using the most precarious facilities, without any concern with hygiene and cleanliness. In short: very little investment, very low risk and high profits. The consumer buys a mock medicine and receives the worsening of the disease, sometimes death. They have already been found in counterfeit arsenic, cement powder, floor wax, paint, talcum powder, nickel, among others.

This alarming situation deserves full attention on the part of society and, of course, the government, at all levels. The integrated action of the public administration bodies, the strengthening of the inspection areas, especially the National Health Surveillance Agency (Anvisa), the constant improvement of pharmacovigilance, which may point to the use of false medicines, the procedures for traceability of medicines, the improvement of the drug purchase process and consumer awareness work are initiatives that must be contemplated, with the objective of reducing criminal action.

The National Forum Against Piracy and Illegality (FNCP), a non-profit civil association, has business associations and companies as members and has been assuming an important role in this process, by supporting inspection actions (Thematic Operations to Combat Crimes against the Tax Authorities and Public Health, organized by the Federal Highway Police on federal roads in conjunction with the Federal Revenue Service, the Federal Police and Anvisa) and awareness raising (Seminar - annual - of the Triple Border, in Foz do Iguaçu, in addition to guides for consumers and government).

These initiatives demonstrate that much remains to be done. The breach of public coffers is impressive, and the damage to health is immeasurable. Public authorities, civil society and companies must persevere in this just and indispensable struggle. Health thanks you.

Edson Luiz Vismona

President of the National Forum Against Piracy and Illegality (FNCP) and the Instituto Brasil Legal, he was Secretary of Justice and Defense of Citizenship of the State of São Paulo

Source: Mail Braziliense

Bill expands drug fraud ban

Approved with changes in the Chamber of Deputies, the bill returns to the Senate (PLS 464 / 2011) by Senator Humberto Costa (PT-PE), which allows the suspension of activities, for as long as necessary, of a business establishment involved in the falsification, adulteration or alteration of medicines.

Currently, the maximum interdiction term as a precautionary measure, provided for in the law dealing with sanitary infractions (Law 6.437 / 77) cannot, in any case, exceed 90 days. After that period, the establishment is released automatically. According to the project, the interdiction of establishments that falsify or adulterate medicines and cosmetics may exceed the 90 days of the current rule to make it possible, for example, to carry out tests, tests and analyzes.

Approved by the Senate's Constitution, Justice and Citizenship Commission (CCJ) in a terminative character, the project was forwarded to the Chamber, where it passed as 3673 PL / 2012. By means of amendments, the Chamber's Social Security and Family Commission included laboratories for personal hygiene and perfumery products among those that could be banned indefinitely. The amendment will be examined by the CCJ, where it awaits the appointment of the rapporteur.

 Source: The Senate Agency

Unpublished campaign warns of the dangers of smuggling

The cheapest is not always the best choice. Even more when the option is for smuggled, pirated or counterfeit products.

The Brazilian Association to Combat Counterfeiting (ABCF), in partnership with the Brazilian Institute of Ethics in Competition (ETCO), launched this Wednesday, July 23, the campaign "Promotion Achou, Perdeu!"

The campaign's proposal is to draw the attention of consumers and society to the risks that products from contraband bring to safety and health. The tone of the communication follows the line of the great sales of popular stores, but with a focus on unknown components and the dangers generated by pirated software, illegal cigarettes from Paraguay and toys without Inmetro certification.

“We want to involve society and encourage a change in consumer behavior, showing that often what appears to be an advantage, in fact, only brings problems and harms to health and increased crime in the state”, explains Rodolpho Ramazzini, director of the Association Brazilian Fight Against Counterfeiting (ABCF).

"As well as the health and safety risks were not enough, the increase in smuggling also significantly affects the state's revenue", concludes Ramazzini.

Research

Aimed at classes B and C, which are among the largest consumers of smuggled, pirated or counterfeit products, the campaign “Promotion Found, Lost!” was based on various statistics and research by Ibope, which helped to identify the points that hurt and sensitize the consumer the most.

Campaign reach

The campaign will run in the metropolitan region of Curitiba between the months of July and October and will be on several billboards, bus shelters, on TV channels, radio and newspapers.

After this period, the entities will analyze the results - such as the drop in the consumption of smuggled and counterfeit products - to evaluate the possibility of expanding the circulation to other states and cities affected by this problem.

Smuggling and embezzlement have stricter penalties

Law 13.008 / 14 updates article 334 of the Penal Code with stricter penalties for smuggling and embezzlement; norm also introduces typifications that will facilitate the repression of these crimes

Law 27 / 13.008 entered into force last June 14, which updates article 344 of the Penal Code and extends the penalties for crimes of smuggling and embezzlement. Smuggling, defined as the export and import of prohibited products (drugs and pesticides without registration, for example), is now punishable by imprisonment for 2 to 5 years.

If the crime is carried out by air, sea or river, the penalty doubles. In the previous wording, the punishment was from 1 to 4 years in prison, and it could double only if it was perpetrated with air transport.

The embezzlement (subtraction of taxes and product rights) gained a separate classification from smuggling (before they were understood as the same crime) and a specific article in the Penal Code (344A). The practice continues to be punished with imprisonment for 1 to 4 years. The difference is that now the penalty doubles if the crime is committed with the use of maritime and river transportation, in addition to the air means already provided for in the Penal Code.

Another novelty introduced by Law 13.008 / 14 is to equate conducts previously not established in the Penal Code to smuggling and embezzlement practices. An example is cabotage navigation (transportation of goods between ports). When made outside the terms of the law with the purpose of evading taxes, it is considered as the diversion of products.

The new law also establishes typifications that criminalize support activities essential to these crimes. The expectation is that these changes will facilitate the work of repressing police authorities.

“Organized crime increasingly uses contraband and embezzlement to finance its activities. Law 13.008 / 14 strengthens the fight against these practices, which put lives at risk, burden public coffers and harm companies operating in the law, ”says Evandro Guimarães, executive president of the Brazilian Institute of Ethics in Competition.

The diversion and smuggling, together with piracy, cause annual losses of R $ 100 billion to Brazil. The estimate is from the IRS and dates from 2013.

Inspection seizes more than 1.500 products sold without a note in downtown Brasilia

The Order Shock Operation, conducted by 14 inspection agencies of the Federal District, collected, on Thursday (3), in downtown Brasília (DF), 1.534 unreported products, among them 1.202 counterfeits. One person was arrested. Representatives of Seops (Secretariat of Public and Social Order (Seops) and Agefis (Inspection Agency) made the apprehension between Conic and Rodoviária do Plano Piloto. PMDF (Military Police of the Federal District) participated in the action to ensure security the location.

According to the operation, the arrested salesman offered at least 56 t-shirts and shorts from the Brazilian team and uniforms with the image of the World Cup mascot doll, which is considered a crime of trademark violation. Each T-shirt was for sale for R $ 35 in an improvised way on the floor of the terminal's lower platform. In conventional stores, the original costs, on average, R $ 230.

The peddler, driven to the 5th DP (Police Station), gave testimony, signed a detailed term and was released. The penalty for those selling pirated products is one to three months in prison or a fine.

The actions at Rodoviária are, above all, aimed at the occupation of public spaces by agents in order to avoid the arrival of street vendors at the terminal. However, some insist on trade and ended up at a loss, said Seops undersecretary of operations, Luciano Teixeira.

1.132 CDs and DVDs were also apprehended in front of Conic and 14 cell phones on the lower platform of the bus station. The sellers fled. Among the other goods collected in the action were fruits, cans of soft drinks and beers, a bottle of mineral water, sweets and snacks.

The materials followed the deposit of Agefis and may be recovered by the owners by paying a fine and presenting an invoice, except the counterfeits, which will be destroyed.

Work group

The Order Shock is part of the schedule of actions developed at Rodoviária since August last year, when the Integrated Management Committee was created. The group of 14 organs of the GDF (Government of the Federal District) is coordinated by the Casa Civil.

The activities are planned with the objective of maintaining public order, safety, quality in public facilities and assistance to people in situations of vulnerability. Seops and Agefis are responsible for monitoring to prevent piracy and illegal trade.

According to the legislation that regulates the economic activities of the Federal District, the sale of goods in a public area that was not authorized by the State is considered irregular. Marketers and other shopkeepers can obtain an authorization from the Regional Administration of the city where they intend to sell products.

For street vendors, the option is to request an eventual license from the City Coordination. Just take the RG and CPF and register on the list of interested parties to work on shows and events with defined days and times.

Learn more: http://noticias.r7.com/distrito-federal/fiscalizacao-apreende-mais-de-1500-produtos-vendido-sem-nota-no-centro-de-brasilia-03072014