September 1, 2026
Reading time • 5 min
Smuggling Extends from the Border to the Internet and Defies Enforcement in Brazil
A smuggled product travels through a long supply chain before reaching the consumer. The goods cross borders, pass through carriers, distribution centers, shopping malls, and online marketplaces until they reach retailers—often without the buyer knowing their origin.
Slimming pens have become one of the most recent examples of this process. According to auditors from the Federal Revenue Service, this medication—whose illegal sale is a concern for health authorities—is now among the main challenges in combating smuggling at Brazil’s borders.
“It’s a product that enters the country illegally and is widely available in border regions, where it can be purchased at pharmacies,” says George Souza, director of technical affairs at Unafisco (National Association of Customs Auditors).
The concern in this case goes beyond tax issues. “Since they are not regulated by Anvisa (the National Health Surveillance Agency), weight-loss pens are treated as a public health problem,” he says.
The situation is similar to that of so-called vapes (e-cigarettes), whose production and sale are not permitted in the country due to the risks they may pose to consumer health.
For Souza, the lack of personnel is one of the main challenges facing the Customs Service, especially in dry border regions.
“At ports and airports, information sharing between countries and intelligence work end up being important partners for auditors,” he says.
He points out that Brazil has more than 7,000 kilometers of land borders. On land routes—in addition to the Federal Police, which also operates at ports and airports—the Federal Revenue Service relies on the support of the Federal Highway Police, which patrols federal highways and often intercepts shipments before they reach distribution centers.
Law enforcement agencies play a crucial role in this work because the routes used to transport contraband and pirated goods are often the same as those used for trafficking drugs, weapons, and ammunition.
Luiz Claudio Garé, a lawyer and legal and institutional relations consultant for the BPG (Brand Protection Group), points out that the distribution of these products still follows the same distribution route as in the physical market, with wholesale sales primarily taking place in popular commercial districts of São Paulo, such as the Brás, Bom Retiro, and Rua 25 de Março areas.
“An important victory for companies was holding shopping arcades liable for the stores located within them that sell pirated and contraband goods,” said Garé, referring to a decision by the STJ (Superior Court of Justice).
He notes that some shopping arcades in these commercial centers essentially thrive on the sale of illegal goods, whether pirated or contraband.
These products generally arrive via well-known routes, coming from Asia through ports with false declarations of contents, or by highway from neighboring countries such as Paraguay, Bolivia, Argentina, and Uruguay.
“Another route that has drawn attention is via Suriname, with products arriving by river and entering Brazil through Pará. It’s a route for distributing these products to the North and Northeast regions, but it has also been used to supply the entire country,” said Garé.
The information is based on seizures and joint efforts between brands and government authorities. He notes that these routes are also two-way, with counterfeit products made in Brazil being distributed to other countries in the region as well.
Garé points to the Nova Serrana (MG) region as a hub for the manufacture of counterfeit shoes and to Arapongas (PR) as a hub for the manufacture of counterfeit caps.
“Generally, where there are legitimate manufacturers, there are also centers of counterfeiting. Counterfeiters take advantage of the technical expertise, the ease of obtaining machinery, and the availability of skilled labor in the region,” he said. Both the illegal import and export of products cause losses to public coffers.
The internet has become another major concern regarding the trade in contraband and counterfeit goods.
“Marketplaces allow anyone to list products for sale, which facilitates the sale of counterfeit and pirated goods directly to consumers through various accounts,” says Garé.
According to him, this concern also extends to perfumes, medications, and even auto parts. The attorney notes that the internet has also made it easier for international stores to import products directly, and these stores do not always deliver genuine products.
The president of ETCO (Brazilian Institute of Competition Ethics), Edson Vismona, states that—whether or not they are misled about the origin of what they are buying—consumers of counterfeit or smuggled goods are seeking lower prices.
He cites the example of the militias in Rio de Janeiro, which are reportedly counterfeiting cigarette brands from Paraguay to sell in the areas they control. “Buyers already seek out these brands because they know they’re cheaper,” he said.
In this case, the militias not only maintain clandestine factories for cigarette production but also force all merchants in their areas of influence to sell only the goods they produce, thereby multiplying their profits from the sale of counterfeit goods.
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