Organized crime has expanded into the illegal cigarette market by counterfeiting Paraguayan products in Brazil. Over the past two years, 21 clandestine factories have been shut down in the country.Criminals generally use foreign labor and, according to enforcement agencies, under conditions akin to slavery. The decision to counterfeit Paraguayan brands, which are already well known among Brazilians, is aimed at reducing costs.
With this strategy, criminals cut transportation costs and minimize the risk of losing shipments in operations aimed at curbing smuggling on Brazilian roads.
A study shows that the illegal market accounts for 32% of cigarette consumption in Brazil. According to the National Forum Against Piracy and Illegality, Paraguayan products result in 7 billion reais in tax evasion annually.
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News from Brazil
