INTERNATIONAL. Duty Free World Council (DFWC) and Tax Free World Association (TFWA) have issued a zero-tolerance declaration on illicit trade, counterfeiting and intellectual property theft.
In an important signal of support, leading travel retailers Aer Rianta International, Dubai Duty Free, Dufry, Gebr. Heinemann, Lagardère Travel Retail and Qatar Duty Free have signed up to the declaration. Collectively, these initial signatories account for around US$25 billion of travel retail sales (based on 2019 data).
The declaration has been created as the next step in the ‘Duty Free: Trusted, Transparent, Secure’ campaign, which was jointly launched by DFWC and TFWA in June 2022.
A significant number of brand owners have also expressed their willingness to make the same commitment, and DFWC and TFWA will publish a separate announcement on supplier support in the near future.
By signing this declaration, retailers commit to a zero-tolerance approach to illicit trade, and at the same time are requesting suppliers to follow suit with a clear anti-illicit trade policy. This builds on the commitments already made by several travel retailers through United Nations Global Compact.
The commitment stands as a key tool to demonstrate that the industry is in no way associated with the growing problem of illicit goods fraudulently labelled as duty free.
DFWC President Sarah Branquinho said, “There is no place in our industry for companies that engage in illicit trade. Illicit trade in all its forms causes substantial societal harm and costs our industry significant lost sales opportunities. It can also cause our industry reputational harm when illicit or counterfeit goods are fraudulently mislabelled as ‘duty-free’ in an attempt to lend authenticity to the product.
“Ultimately, consumers should be aware that when they purchase goods labelled as duty-free outside of a licensed duty-free retailer, it is very likely to be a counterfeit product.
“Our industry already boasts one of the most transparent, trusted and secure supply chains in the world. We are proud of our industry’s credentials and commit to maintaining these high standards.
“Today, some of the major players in our industry are making clear their ongoing stance against illicit trade and will be encouraging their suppliers to follow suit. There can be no room for doubt – the duty- and tax-free industry has zero tolerance for illicit trade in all its forms. We want to send a clear message worldwide – when you shop in a duty-free shop, you can do so with complete confidence.
“Our announcement today builds upon the decades of trust that we have built with our customers, governments, customs authorities and industry partners. DFWC, TFWA and the initial signatories are keen to grow the momentum behind this initiative and are confident the industry will be fully behind it.” ✈