The Federal Revenue Service, with the support of the Military Brigade, carried out an operation in shops in the centre of São Leopoldo on Tuesday morning (28). The targets were shops selling counterfeit goods (pirated products) with no proven origin.
In the raid, which involved 40 Federal Revenue officials and 14 military police officers, 1,200 packages (bags or boxes for storing and transporting the products) of goods valued at around BRL 9 million (selling price) were seized from three companies with branches, totalling six shops selling retail and wholesale products, as well as a warehouse.
According to the Federal Revenue Service, when possible, the counterfeit goods are de-characterised (i.e. the brand identification is removed) and donated.When de-characterisation is not possible, the goods are destroyed. Goods that have been imported irregularly (without paying taxes) can be auctioned, donated or incorporated into assets.
Companies face the penalty of having their goods confiscated and being held responsible ("Fiscal Liability for Criminal Purposes"), but shops are not prevented from operating and can open as normal.
"The commercialisation of counterfeit and smuggled products harms the country. Traders and industries that operate regularly pay taxes and create jobs in accordance with labour laws," said the Internal Revenue Service in a statement.