Trusted, Transparent, Secure – Associations release position paper on illicit trade

FRANCE/INTERNATIONAL. The Duty Free World Council (DFWC) and the Tax Free World Association (TFWA) have released a position paper on tackling illicit trade, counterfeiting and intellectual property theft.

The paper sets out the disproportionate and unfair impact illicit trade has on duty and tax free channels through fraudulent labelling by criminals and also in terms of lost sales opportunities.

It calls on national governments and cross-border enforcement agencies to work with industry to put an end to the practice.

The campaign distances illegality in tobacco trading from the highly-regulated duty free industry

The paper’s release comes after the successful launch of the Duty Free: Trusted, Transparent, Secure campaign in July, which is being led by the DFWC and TFWA with support from a global network of regional travel retail associations.

DFWC and TFWA are sending out a strong message that duty and tax free channels are among the world’s most transparent, secure and legitimate supply chains, with 100% of products sold in travel retail shops being authentic and traceable.

The campaign logo makes a strong statement about the duty free industry

As the position paper states, in recent years illicit traders have begun to fraudulently label tax-evaded goods as ‘duty-free’. By using fake labels and markings, these criminals attempt to cash-in on the trust consumers have placed in the duty and tax-free industry for over 75 years.

In addition to warning consumers of the dangers of illicit goods and how to distinguish genuine duty free products from falsely labelled ones, the position paper recommends:

  1. Better regulation of informal and casual retail channels such as street stalls and markets, and for the robust implementation of existing rules
  2. Greater control over Free Trade Zones (FTZs) & Special Economic Zones with a common approach to enforcement to prevent the emergence of illicit trade hot-spots
  3. Help educating consumers to build on industry-led initiatives such as the dutyfreefacts.com website
  4. Investigation of duty free specific issues such as fraudulent mislabelling, an emerging trend among criminals
  5. Enhanced cooperation between industry and enforcement bodies to tackle the “common enemy” that is illicit trade
Erik Juul-Mortensen and Sarah Branquinho sent out strong messages on fighting illegal tobacco trading

Of the position paper, DFWC President Sarah Branquinho said: “We are proud to launch the position paper in support of the Duty Free: Trusted, Transparent and Secure campaign. Since the campaign’s launch this summer, we have been greatly encouraged by the level of support it has received from industry and enforcement bodies.

“Today’s paper outlines how we can increase cooperation and work together to tackle this form of illegality.”

TFWA President Erik Juul-Mortensen said: TFWA has been honoured to be a part of the Duty Free: Trusted, Transparent and Secure campaign since its conception. Today’s position paper highlights the action our industry has been taking against illicit trade for many years, and what steps are required from the public sector to strengthen this.

“We hope the paper and our ongoing campaign inspires stronger action, and raises awareness of the dangers of illicit goods among consumers.”

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