Electronic notes are not enough to combat illegal gold – 01/04/2023 – Panel SA

The norm published by the Federal Revenue on Thursday (30) to end the paper invoice in the gold trade and demand the electronic invoice from July should help to combat illegal mining in indigenous lands and environmental reserves. But the measure is still insufficient, in the opinion of Ecio Morais, director of the IBGM (the jewelry market association that brings together brands such as Vivara and HStern).

There is still a need to strengthen monitoring to increase the traceability and transparency of gold, he says.

After the adoption of the electronic invoice for the gold mining trade, what should change in the jewelry market? It is an important measure, which we have been defending for many years. It should be celebrated, no doubt. It allows for greater traceability in the gold chain.

Today, how it works: the garimpeiro will sell this gold to a purchase station in the garimpo, and DTVM, which is the purchaser of the gold, issues a paper invoice. It is an archaic model, which is supplied by legislation today.

With the electronic invoice, this process becomes completely computerized and much more traceable. It is a big benefit for the entire gold value chain. Now, a lot still has to be implemented. This is a necessary condition, but not a sufficient one.

Within what is still missing, what are the priorities? What we defend is a greater strengthening of the monitoring system for this market, particularly the strengthening of the ANM (National Mining Agency), which is largely responsible for issuing environmental licenses, mining permits. It is she who issues, inspects and monitors. It is she who should police this market. So, we advocate strengthening the agency to have more traceable and transparent gold.

After the news about the tragedy of the Yanomami, the jewelry retailer recorded an upward movement in the purchase of gold directly from miners, which are certified, instead of buying from DTVMs. Is this trend confirmed, has it grown? The issue of operating with a large mining company is a little more difficult because you need to have scale, that is, you have to buy in large quantities.

There is a logistical issue, you have to pick up the metal at the mining company’s headquarters. It does not sell fragmented in small quantities, 1kg or 0.5 kg of gold. She only sells in bulk.

And, finally, there is a tax problem, of differentiating gold as a commodity and a financial asset. It compromises the viability of this operation a little. But it is an effort that the entire sector has made to make this operation viable, and that we can acquire gold from large mining companies.

And there is the effort to trace the metal, so that we can acquire gold from DTVMs, but gold that is traceable, transparent, monitored. And it’s perfectly viable today, there’s technology for that, georeferencing that monitors mining. The electronic invoice came to help.

Did the Vivara chain already make this purchase directly from the mining company? Does it have this facility because it is a large chain, with wide distribution, unlike the small jeweler? Correct. Vivara buys in large quantities, that is, it has scale, and is headquartered in Manaus. So, there is a tax facility. When you buy from a DTVM, they have offices in the production poles, they deliver the fragmented metal, 250 grams or 1 kg, which makes the operation of a small company viable.

But I believe that with a joint effort by society, the sector and public authorities, we are going to make this gold chain much more transparent, traceable and regulated.

And recycling? Has the sector been talking about that project to buy pawned jewelry from Caixa? This is a project that we see with affection. We would like Caixa to be more sensitive so that the sector has access to the stock from the pledge and which did not manage to be auctioned. If there were a mechanism that facilitated access by the industry to this metal that is available in Caixa, it would be an intelligent and environmentally sustainable measure.

Does this tragedy of the Yanomami concern the sector from the point of view of the reputation of jewelry retailing and this product category? I think it’s a concern for all of Brazilian society. Naturally, the jewelery segment, as it is involved in the chain, as it is the final link, has a slightly greater concern. The solution to this problem permeates the whole society and particularly the public power. It has ANM, ICMBio, Ibama, Federal Police, Armed Forces, Federal Revenue Service.

The issue of electronic invoices is very important, but what should surprise us is that it has not yet been implemented. We have one of the most computerized and modern financial systems in the world, and the method of acquiring financial asset gold is still on carbon paper. It’s archaic.

And the case of former President Bolsonaro bringing jewels to the country. How does the sector see this issue? It’s an isolated case. The normal procedures were not complied with, without going into that merit. For now, we do not see any impact. I am more concerned with the mining issue than with this isolated case involving the former president.

What is the importance of jewelry as a gift in this market? Do you have surveys that show which portion of sales is destined for gifts and how much is destined for the buyer? In recent years there has been a change in behavior. The woman gained space in the labor market and presents herself. This is growing. The jewel is still a symbol of passage. Wedding anniversary, graduation, that remains. But this market for executive women who present themselves has grown a lot.

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Master in economics from PUC-SP, specializing in business law. He currently holds the position of executive director of the IBGM (Brazilian Institute of Gems and Precious Metals). He has already headed Sindijoias SP (a trade union for the jewelry industry in São Paulo) and Ajesp (an association of jewelers in SP).

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