Paraguayan cigarette brands accounted for 49% of sales in this market in Brazil in 2020. As a result, some clandestine factories in Brazil began to falsify these brands, even exporting parallel products.
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In 2021, nine units of underground Paraguayan fake cigarette industries, which produced about 5.3 billion cigarettes, were closed. The places with the highest incidence of these cases are: interior of São Paulo, Minas Gerais and Rio Grande do Sul.
In addition to exporting, Brazilian gangs make counterfeit cigarettes to sell on the domestic market, thus avoiding the taxes levied and the risk of seizures on the highways.
In the first half of last year, the Internal Revenue Service confiscated more than 7 million packs of cigarettes on highways in São Paulo. The most used brands for counterfeiting are: Eight, Gift, Palermo and Club One.
In October 2021, the PF discovered and closed a clandestine cigarette factory that operated with foreign labor, something close to a slave service. The place moved R$ 50 million per month, according to information from “Folha de S. Paulo”.
In total, there were 18 workers (17 of them Paraguayans), working in a room without a window and with two showers.
The illegal cigarette market declined in 2020 in Brazil, according to Ipec data. One of the reasons for the reduction of counterfeits was the closing of borders during the Covid-19 pandemic and the lockdown in Paraguay, which interrupted manufacturing activities.
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