🇧🇷Brazil

Multas por Comércio de Madeira Ilegal e Não Conformidade com Legality Requirements

4 verified sources

Definition

Brazil has banned export of logs, sawnwood, and firewood from natural forests since 2005. Companies exporting without proper documentation or with illegally sourced timber face severe penalties. Over 90% of Brazilian timber carries some form of illegality, and fraud through false forest management plans is common, particularly in Pará, Rondônia, and Mato Grosso states.

Key Findings

  • Financial Impact: Hard Evidence: ~R$ 28 million (US$ 8 million) in illegal timber exports detected in single 2015 Interpol Purple Notice operation. Lumber Liquidators (US importer) paid US$ 13 million penalty. EUDR fines: minimum 4% of annual turnover plus confiscation. For typical R$ 50M revenue manufacturer, this equals R$ 2M+ annual exposure.
  • Frequency: Ongoing; Interpol Purple Notice issued August 2016; enforcement sporadic but penalties severe when applied.
  • Root Cause: Weak state enforcement, reduced IBAMA oversight capacity, fraudulent documents accepted at point of export, manual allocation sheets lack legality cross-checks.

Why This Matters

The Pitch: Brazilian wood manufacturers waste R$ millions annually in hidden penalties and confiscated shipments due to gaps in order allocation documentation. Automated legality verification during order processing eliminates this risk.

Affected Stakeholders

Sourcing/Procurement, Order Fulfillment, Export Documentation, Supply Chain Compliance

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Risco de Lavagem de Madeira Ilegal via Falsificação de Planos de Manejo

Logic Evidence: UN study cited shows probability of penalties <0.08%, but impact is catastrophic when applied. Single 2015 Pará operation: ~R$ 28 million in confiscated illegal timber. Estimated 2-5% of Brazilian timber exports (~R$ 2-5 billion annually) contain undetected fraud; typical loss per company: R$ 500K-R$ 5M per major seizure.

Não Conformidade com Requisitos de Embalagem de Madeira (ISPM 15) e Certificação

Hard Evidence: CBP penalties scale with negligence type: Fraud = up to 100% of merchandise domestic value; Gross Negligence = up to 4× customs duties lost; Negligence = up to 2× duties lost. Typical R$ 100K shipment: R$ 50K-R$ 400K penalty per violation. Brazil's post-2016 enforcement: automatic rejection of non-certified WPM shipments; re-export costs R$ 20K-R$ 80K per incident.

Perda de Receita por Rejeição de Pedidos e Atrasos em Verificação de Conformidade

Logic Evidence: Typical 1-3% revenue churn in procurement-heavy Brazilian manufacturing due to slow order-to-shipment cycles. For R$ 50M annual revenue manufacturer: R$ 500K-R$ 1.5M annual revenue loss. Additionally, 5-15 day delays in tally sheet verification = 15-30 days AR drag; R$ 50M revenue / 365 days = R$ 137K per-day-delayed; 15-day average delay = R$ 2M cash flow impact.

Multa por Madeira Ilegal e Não-Conformidade com Licenças Florestais

HARD: R$28 million (~USD 8 million) in illegal timber exports documented by Interpol in 2015 (Pará State). HARD: USD 13 million penalty paid by Lumber Liquidators (2016). LOGIC: EUDR penalties: minimum 4% of operator annual turnover + product confiscation + temporary import ban.

Fraude em Autorização de Manejo Florestal e Lavagem de Madeira Ilegal

HARD: R$28 million in fraudulently obtained exports detected (Interpol 2016). LOGIC: Estimated 78-90% illegality rate suggests R$ billions in at-risk timber exports annually; seizure/penalty exposure equals product value + domestic turnover multipliers.

Perda de Capacidade Operacional por Tempos Improdutivos no Transporte de Madeira

Quantified: 9.26% capacity loss translates to ~2.3 additional days of lost transport capacity per 25-day operational month per vehicle. At average transport rates of 0.30 R$/m³.km, a typical 25m³-capacity vehicle losing 3+ minutes per 100km trip = R$ 1,500-2,200/month per vehicle; fleet-wide impact: R$ 18,000-26,400/month for 10-vehicle operations.

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