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Contraband Products Flood Paraguayan Supermarket Shelves, Importers Warn
๐Ÿ‡ต๐Ÿ‡พ Paraguay /Economy & Trade

Contraband Products Flood Paraguayan Supermarket Shelves, Importers Warn

From ABC Color · (3d ago) Spanish Critical tone

Translated from Spanish, summarized and contextualized by DistantNews.

TLDR

  • Importers warn that contraband products are creating unfair competition in Paraguay's fruit and vegetable sector.
  • They report that irregular shipments sometimes end up on supermarket shelves, making it difficult to trace product origins.
  • The association is urging tax authorities to increase efforts against illegal imports, which affect various product categories beyond produce.

From the offices of ABC Color in Asunciรณn, we report on a growing concern within the fruit and vegetable import sector. The Asociaciรณn de Importadores y Comerciantes Frutihortรญcolas (Asicofru) has sounded the alarm, stating that a surge in contraband goods is not only disrupting fair trade but is actively making its way onto the shelves of major supermarkets.

the entry of contraband products is generating unfair competition in the sector.

โ€” Asociaciรณn de Importadores y Comerciantes Frutihortรญcolas (Asicofru)The association's general statement on the issue.

Asicofru president Karen Leguizamรณn highlighted the difficulty in combating this issue, explaining that informal operators often manage to present falsified documentation, making it nearly impossible for retailers to verify the provenance of the goods they receive. This lack of traceability means that even well-intentioned supermarkets can inadvertently stock products that have bypassed legal import channels and evaded taxes.

in some occasions these goods end up on supermarket shelves.

โ€” Karen LeguizamรณnPresident of Asicofru, detailing the reach of contraband.

The association is also critical of the National Directorate of Tax Revenue (DNIT), citing a lack of personnel to effectively combat the influx of illegal items. While acknowledging joint operations with other institutions, Asicofru points out that these efforts are hampered by the DNIT's limited capacity, hindering significant results.

it is there where the situation escapes the hands of the supermarket owners, to know if there is traceability or not.

โ€” Karen LeguizamรณnExplaining the difficulty for retailers to identify contraband.

Furthermore, Leguizamรณn touched upon the domestic supply issues, particularly with tomatoes, which create a demand that national production struggles to meet. This deficit, she argues, creates an opening for contraband, and she criticized the Minister of Agriculture and Livestock for allegedly withholding import authorizations, potentially driving up prices artificially. This situation underscores a recurring tension between agricultural policy and market realities in Paraguay.

the DNIT has few officials nationwide to combat the illegal entry of products

โ€” Karen LeguizamรณnCriticizing the tax authority's capacity to fight smuggling.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.