These counterfeit and contrabanded goods reach Brazil and are sold by the local mafia; proceedings of the brazilian sales are used to buy drugs from the Colombian and Bolivian drug lords. Also, about 25% of those goods sold in Brazil are guns and ammo which are used by the local mobsters in their murders and robberies. Last but not least, a big chunk of the money buys police and political protection.
Bin Laden's family killed in private plane crash in England, officials say (AP)
from the article: Three men charged with financing Hezbollah in Miami