The company sought judicial relief to obtain an injunction ordering the relabeling of the goods at its own expense, given the suspicion of counterfeiting in the labels, thus allowing their customs clearance for sale within the national territory. On the merits, the company requested the annulment of the administrative act that decreed the application of the penalty of forfeiture to the goods, arguing that it was an excessively disproportionate and burdensome measure, lacking any legal basis.

The Honorable Judge to whom, As one might expect, he asserted that If the suspicion rests solely on the labels, removing them would be sufficient., thus dispelling the suspicion of counterfeiting, since they would only supposedly be bearing the logo subject to tax imposition, demonstrating that the application of the penalty of forfeiture is unreasonable.

Furthermore, the Judiciary also raised the issue that If the only element suspected of being altered or falsified in terms of its essential characteristics is the label affixed to the products intended for sale, simply removing these labels would eliminate the element of counterfeiting, thus removing the illegality of the importation of the goods..

Finally, Given that Brazilian law upholds the principle that good faith is presumed, bad faith must therefore be proven..

In short, it is essential that foreign trade operators be supported by a specialized legal team to provide the necessary support for maintaining their rights, because even if they seek to conduct their commercial activities in accordance with current legislation, they may end up surprised by discretionary and illegal conduct adopted by the Administrative Authority.

For more information, contact our team!

Decision commented on by Gian Lucca Jorri, Lawyer, graduated in Law in 2016 from the Catholic University of Santos / SP, specializing in Customs and Tax Law. OAB/SP No. 404.759