Vertical Markets

Counterfeit trade

by Mark Rowe

Over the years, international trade has grown and the increase in counterfeit trade has come as an inevitable side effect. Illicit trade in counterfeits that misuses maritime transport is a universal and general problem, which should be a concern to all shipping lines that use containers, says an official report. Trade in counterfeit and pirated goods amounted to up to 3.3 per cent of world trade in 2016, according to a report by the European Union agency the European Union Intellectual Property Office (EUIPO) with the OECD. Counterfeiters operate swiftly in the global economy, misusing modern logistics and legitimate trade mechanisms and thrive in economies lacking good governance standards, EUIPO said.

The main counterfeit shipments are from East Asia, especially China and Hong Kong. India, Malaysia, Mexico, Singapore, Thailand, Turkey and the United Arab Emirates remain among the top provenance economies for counterfeit and pirated goods traded worldwide.

All types of counterfeit goods are shipped by sea: high-value electronic equipment, to leather goods, clothing, cosmetics, toys and games, pharmaceutical products. Half of all the containers transported from five major provenance countries of counterfeits by maritime transport to Europe entered in 2016 through four ports: Rotterdam, Hamburg, Felixstowe and Antwerp. Southampton and London (Tilbury) were other UK container ports named in the report, titled: Misuse of Containerized Maritime Shipping in the Global Trade of Counterfeits, Illicit Trade.

Counterfeit and pirated products tend to be shipped by virtually every means of transport. In terms of the number of seizures, trafficking of fakes via small parcels is growing and becoming a significant problem for enforcement; however, in terms of value, counterfeits transported by container ship clearly dominate. Counterfeit goods accounted for 6.8pc of goods imports into the EU from third countries, worth 121 billion euros, it’s estimated.

Christian Archambeau, Executive Director of the EUIPO, said: “Heightened concern over counterfeit personal protection equipment and medicines as a result of the covid-19 crisis has opened a window for significant progress to be made in countering this illicit trade. We need a concerted effort to combat fakes of all kinds, on all routes whether by sea in containers or in small postal packets. Counterfeits harm legitimate trade, are often dangerous and need to return to being a priority in enforcement against international crime.”

X-ray or gamma-ray scanning of containers can be means of detecting illegal shipments such as narcotics, weapons or wildlife trafficking. They are, however, not effective in detecting counterfeit goods, as physical inspection is the only effective tool. However fewer than 2pc of containers are physically inspected.

In conclusion, the report says that seaports should ‘up their game and improve their capability for effective scrutiny of cargo’. The authors point to the attractiveness of containers for counterfeit traders; the ‘interoperability of containers, the anonymity of containers, the growing complexity of trade routes, alliances and vessel sharing agreements, and the fragmented governance structure of maritime transport that facilitates diffusion of responsibility’. A dilemma for customs is that they have had to balance the need for expedited processing of imports, with the need for properly assessing duties and monitoring imports with a view towards countering counterfeits.

Maritime transport companies could use their pivotal role in supply chains to better scrutinise their cargo, the report ends by suggesting. Certification schemes, such as those for protecting natural forests, could be a way forward, the report suggests.

For the 80-page report visit the EUIPO website. You can also download it from the OECD website.

Comment

The Anti-Counterfeit Group (ACG) has warned that planned infrastructure developments in European ports, as a result of the Chinese Belt and Road initiative, could further accelerate the growth of fakes entering Europe in container ships.

Phil Lewis, ACG’s Director General says: “Huge sums of money are falling into criminals’ hands from this massive trade, which could be used to re-build our economy, protect consumers and businesses, and support vital public services.

“The ACG calls on UK Government to target our enforcement resources to combat this largely overlooked form of international criminality and to take extra care in signing trade deals with countries, which have little respect for our prized business assets or the safety of consumers.”

Related News

  • Vertical Markets

    Securing summer

    by Mark Rowe

    As summer approaches, it’s even more important to ensure you’re getting the most out of the security measures you’ve been considering. Whether…

  • Vertical Markets

    Breslin on policy

    by msecadm4921

    Education policy is full of contradictions and mixed messages and yesterday’s announcement on the declassification of vocational qualifications, in terms of their…

Newsletter

Subscribe to our weekly newsletter to stay on top of security news and events.

© 2024 Professional Security Magazine. All rights reserved.

Website by MSEC Marketing