DOCSLIB.ORG

Balancing Facilitation and Control to Combat Illicit Trade in the World's

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Balancing Facilitation and Control to Combat Illicit Trade in the World's 2020 UPDATE Controlling the Zone: Balancing Facilitation and Control to Combat Illicit Trade in Free Trade Zones SEMINAL REPORT Key messages: In 2013, ICC BASCAP published a seminal report, “Controlling the zone: Balancing facilitation and control to combat illicit trade in the world’s Free Trade Zones”. This 2020 update aims to build on that report by assessing the current environment as well as to shed light on the trends of counterfeiting and other forms of illicit trade facilitated within free trade zones (FTZs). This 2020 update: • Looks deeper into the role of FTZs in the context of their unplanned contribution to the global trade in counterfeiting and piracy. In the last few years, this issue has garnered much attention among policy makers and law enforcement. Increasingly, national governments are also recognising the key role that Customs play in FTZs and have strengthened enforcement—however, there is a lot more left to be done. • Recognises the impact of the recent outbreak of the novel coronavirus (2019-nCoV or COVID-19) on companies’ supply chains, trade, and vulnerabilities that allow opportunities for illicit traders to move contraband in FTZs. • Addresses the impact that counterfeiting in FTZs has on SMEs, their supply chains and business operations. • Provides specific case examples of enforcement actions including Customs seizures within or having transited FTZs and other examples where FTZs have been exploited by criminal groups. • Presents current solutions developed by national governments, private entities and intergovernmental organisations to mitigate abuse in FTZs. • Offers new recommendations for governments, Customs and FTZ operators and the World Customs Organisation. Copyright © 2020 International Chamber of Commerce (ICC) ICC holds all copyright and other intellectual property rights in this collective work, and encourages its reproduction and dissemination subject to the following: • ICC must be cited as the source and copyright holder mentioning the title of the document, © International Chamber of Commerce (ICC), and the publication year. • Express written permission must be obtained for any modification, adaptation or translation, for any commercial use, and for use in any manner that implies that another organization or person is the source of, or is associated with, the work. • The work may not be reproduced or made available on websites except through a link to the relevant ICC web page (not to the document itself). Permission can be requested from ICC through [email protected] TABLE OF CONTENTS Executive Summary .......................................................................................................................................4 1. Introduction ................................................................................................................................................5 2. Vulnerabilities to counterfeiting and piracy .......................................................................................6 2.1. SMEs and FTZs ...............................................................................................................................................................................8 2.2. Findings from the OECD-EUIPO study on FTZs............................................................................................................9 2.3. IPR abuses facilitated in FTZs .................................................................................................................................................9 2.4. Associated crimes facilitated by FTZs ..............................................................................................................................10 2.4.1. Money laundering .................................................................................................................................................................................. 10 2.4.2. Corruption ...................................................................................................................................................................................................11 2.4.3. Illicit trade in tobacco ...........................................................................................................................................................................12 2.5. Specific vulnerabilities: how traffickers exploit free trade zones ......................................................................... 13 2.5.1. Illustrations of abuse and supply chain routes ............................................................................................................................15 3. The important role of Customs in free trade zones ....................................................................... 19 3.1. Case Studies: Customs' Enforcement Action ...............................................................................................................20 4. International framework .......................................................................................................................22 4.1. Agreements and conventions ............................................................................................................................................... 22 4.1.1. WCO conventions and instruments .............................................................................................................................................22 4.1.2. TRIPS and other WTO obligations ................................................................................................................................................24 4.2. International standards ............................................................................................................................................................ 25 4.2.1. OECD recommendations ...................................................................................................................................................................25 4.2.2. WCO Practical Guidance on Free Zones ...................................................................................................................................26 4.3. Trade agreements ...................................................................................................................................................................... 26 5. Current approaches, best practices and standards ........................................................................28 5.1. National-level cases or legislation ...................................................................................................................................... 28 5.1.1. Malaysia ......................................................................................................................................................................................................28 5.1.2. Thailand ......................................................................................................................................................................................................28 5.1.3. Singapore ..................................................................................................................................................................................................28 5.1.4. Colombia ...................................................................................................................................................................................................29 5.1.5. China ............................................................................................................................................................................................................29 5.2. Private sector initiatives and efforts ................................................................................................................................. 29 5.2.1. ICC World Chambers Federation (WCF) International CO Accreditation Chain ...................................................29 5.2.2. World Free Zone Organization Safe Zone program ........................................................................................................... 30 5.2.3. International Trademark Association Guidelines and Recommendations ..................................................................31 5.2.4. Global Illicit Trade Environment Index: Free Trade Zones—Five Case Studies ........................................................31 6. Recommendations ..................................................................................................................................33 6.1. General recommendations..................................................................................................................................................... 33 6.1.1. Strengthen relationship between Customs and FTZs .........................................................................................................33 6.1.2. Empower national Customs authorities .................................................................................................................................... 34 6.1.3. Ensure government allow targeted data sharing between Customs and the private sector ........................................................................................................................................................................ 34 6.1.4. Strengthen national government adherence to international conventions
Load more

Recommended publications
  • Illicit Tobacco Trade in Georgia: Prevalence and Perceptions Megan Little,1 Hana Ross,1 George Bakhturidze ‍ ,2,3 Iago Kachkachishvili4
    Original research Tob Control: first published as 10.1136/tobaccocontrol-2018-054839 on 18 January 2019. Downloaded from Illicit tobacco trade in Georgia: prevalence and perceptions Megan Little,1 Hana Ross,1 George Bakhturidze ,2,3 Iago Kachkachishvili4 ► Additional material is ABSTRact The new government coming to power in 2004 published online only. To view Background In lower- income and middle- income decided to double and triple taxes for imported please visit the journal online filtered and domestic filtered cigarettes, respec- (http:// dx. doi. org/ 10. 1136/ countries, limited research exists on illicit tobacco tobaccocontrol- 2018- 054839). trade and its responsiveness to taxation. Tobacco taxes tively. In preparation for this increase, tobacco are critical in reducing tobacco consumption, thereby companies prepurchased tax stamps (introduced in 1 Economics, Southern Africa improving public health. However, the tobacco industry 1999) with the lower 2004 value, to use in their Labour and Development 2005 sales. This resulted in an artificial tax revenue Research Unit, University of claims that tax increases will increase illicit tobacco Cape Town, Cape Town, South trade. Therefore, research evidence on the size of the increase in 2004 followed by a sharp fall in early Africa illicit cigarette market is needed in Georgia and other 2005, when the new tax came into effect. Tobacco 2 Tobacco Control Research, low- income and middle- income countries to inform companies then asserted that the tax revenue fall FCTC Implementation and tobacco tax policies. was driven by a sharp increase in illicit trade from Monitoring Center in Georgia, 10% in 2003 to 65% in post-2005.3 This persuaded Tbilisi, Georgia Methods In 2017, a household survey using stratified 3Health Promotion Research, multistage sampling was conducted in Georgia with the government to lower taxes by 30%–40% in Georgian Health Promotion and 2997 smokers, to assess illicit tobacco consumption.
    [Show full text]
  • World Bank Document
    HNP DISCUSSION PAPER Public Disclosure Authorized Public Disclosure Authorized Economics of Tobacco Control Paper No. 23 Russia (Moscow) 1999 Global Youth Tobacco Survey: About this series... This series is produced by the Health, Nutrition, and Population Family (HNP) of the World Bank’s Human Development Network. The papers in this series aim to provide a vehicle for publishing preliminary and unpolished results on HNP topics to encourage discussion and Public Disclosure Authorized Public Disclosure Authorized Economic Aspects debate. The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations or to members of its Board of Executive Directors or the countries they represent. Citation and the use of material presented in this series should take into account this provisional character. For free copies of papers in this series please contact the individual authors whose name appears on the paper. Hana Ross Enquiries about the series and submissions should be made directly to the Editor in Chief Alexander S. Preker ([email protected]) or HNP Advisory Service ([email protected], tel 202 473-2256, fax 202 522-3234). For more information, see also www.worldbank.org/hnppublications. The Economics of Tobacco Control sub-series is produced jointly with the Tobacco Free Initiative of the World Health Organization. The findings, interpretations and conclusions expressed in this paper are entirely those of the authors and should not be attributed in any Public Disclosure Authorized Public Disclosure Authorized manner to the World Health Organization or to the World Bank, their affiliated organizations or members of their Executive Boards or the countries they represent.
    [Show full text]
  • The Tobacco Source Book Data to Support a National Tobacco Control Strategy
    Ministry of Health Republic of Indonesia The Tobacco Source Book Data to support a National Tobacco Control Strategy March 2004 The Cover One day, a santri (student) was found to have been smoking in the toilet where he threw his cigarette butt to the floor, causing a small explosion and minor burns to his bottom. “What a commotion it caused, to be sure,” says Lily Qurrotul Ishaqiyah, the wife of Abdullah Munif, deputy head of the pesantren (boarding school). Lily can relate the incident in detail not only because it took place less than one year ago but also because it has now become a legend. A smoking ban has been in place for more than six years at the Langitan Islamic Boarding School in the village of Wedangan. The young man—who shall not be named here—has since stopped smoking, says Abdullah Munif. “He was not badly hurt, but he was really embarrassed.” The santri (student) was reduced to smoking in the toilet because there was no other place inside the school compound for him to do so. Smoking has been prohibited by the pesantren’s charismatic leader, Abdullah Faqih. Today, even the food stalls and small cafes outside of the boarding school have notices that say “we do not sell cigarette” plastered across their walls. Established in 1852, the pesantren is the oldest in Indonesia and stands on the bank of Bengawan Solo. Every year the school produces thousands of graduates--many of whom go on to higher education both here and overseas, or to work as da'i (preachers) in various parts of the country.
    [Show full text]
  • Plain Packaging and the Interpretation of the TRIPS Agreement Daniel J
    Vanderbilt University Law School Scholarship@Vanderbilt Law Vanderbilt Law School Faculty Publications Faculty Scholarship 2013 Plain Packaging and the Interpretation of the TRIPS Agreement Daniel J. Gervais Susy Frankel Follow this and additional works at: https://scholarship.law.vanderbilt.edu/faculty-publications Part of the Intellectual Property Law Commons, and the International Trade Law Commons Recommended Citation Daniel J. Gervais and Susy Frankel, Plain Packaging and the Interpretation of the TRIPS Agreement, 46 Vanderbilt Journal of Transnational Law. 1149 (2013) Available at: https://scholarship.law.vanderbilt.edu/faculty-publications/841 This Article is brought to you for free and open access by the Faculty Scholarship at Scholarship@Vanderbilt Law. It has been accepted for inclusion in Vanderbilt Law School Faculty Publications by an authorized administrator of Scholarship@Vanderbilt Law. For more information, please contact [email protected]. This article was originally published as: Daniel Gervais and Susy Frankel Plain Packaging and the Interpretation of the Tripps Agreement 46 Vanderbilt Journal of Transnational Law 1149 (2013) 1 +(,121/,1( Citation: 46 Vand. J. Transnat'l L. 1149 2013 Provided by: Vanderbilt University Law School Content downloaded/printed from HeinOnline (http://heinonline.org) Mon Feb 22 13:39:51 2016 -- Your use of this HeinOnline PDF indicates your acceptance of HeinOnline's Terms and Conditions of the license agreement available at http://heinonline.org/HOL/License -- The search text
    [Show full text]
  • Enhancing Business Performance of Pt
    ENHANCING BUSINESS PERFORMANCE OF PT. BENTOEL PRIMA Gabriel Bin Susabda;Ryan Eleazar ABSTRACT Currently, PT. Bentoel Internasional Investama, Tbk ("Bentoel" or "Company") and its subsidiaries, is a member of the British American Tobacco Group, the world's second largest tobacco group by global market share with trademarks in more than 200 countries. Bentoel is the fourth largest cigarette producer in Indonesia with a market share of 7%. Bentoel manufactures and markets a wide range of tobacco products such as machine clove cigarettes, hand-rolled cigarettes and white cigarettes. Our main portfolio includes Dunhill Filter, Dunhill Mild, Club Mild and Lucky Strike Mild. We also produce and market local brands such as Neo Mild, Tali Jagat, Bintang Buana, Sejati, Star Mild and Uno Mild, as well as global brands such as Lucky Strike and Dunhill. Bentoel employs over 6,000 employees, from starting to build partnerships with tobacco farmers, buying and processing leaf tobacco and cloves, to cigarette production, marketing and distribution. 1. COMPANY PROFILE PT Bentoel Internasional Investama Tbk is a member of British American Tobacco Group(the second largest group in the world based on global sales). Currently the company is ranked among the 4 largest cigarette producers in Indonesia. With dozens of already created brands, and with more than 8,000 employees, PT Bentoel Internasional Investama believes to be the fastest growing cigarette company in Indonesia. History of The Company Beginning in 1930 when Mr. Ong Hok Liong underwent a home-based cigarette industry called Strootjes Fabriek Ong Hok Liong. Then in 1954 the cigarette factory changed its name to PT Cigarette Company Tjap Bentoel.
    [Show full text]
  • 14 December 2007 JT International S.A. JT International Holding BV
    14 December 2007 JT International S.A. JT International Holding BV and the European Community and the Participating Member States COOPERATION AGREEMENT Page 1 THIS AGREEMENT is made on 14 December 2007. BETWEEN JT International S.A. (JTI) and JT International Holding BV (JTH), on their own behalf and for and on behalf of all subsidiaries of JTH existing at the date of this Agreement (together Japan Tobacco Companies) and The European Community (the EC) represented by the European Commission (the Commission) and the Member States of the European Union participating in this Agreement (the Participating Member States). 1. RECITALS WHEREAS (A) illicit traffic in Cigarettes is a growing problem for the EC, for Member States and for legitimate trade in tobacco products. It takes the form of trade in both counterfeit Cigarettes and genuine products, which are smuggled into the EC without payment of any applicable EC or Member State tax or duty, or unlawfully introduced from low-tax jurisdictions into higher-tax jurisdictions; (B) illicit traffic in Cigarettes is against the public interest in tax collection, transparent markets, and the protection of lawful competition. As such, illicit traffic in Cigarettes is against the interests of the EC, the Member States, as well as Japan Tobacco Companies and their stakeholders, including employees, customers, business partners and shareholders; (C) the problem of illicit traffic in Cigarettes calls for binding cooperative efforts between the tobacco industry, the Member States and the EC aimed at eliminating the flow of contraband and counterfeit and consequent loss of revenues; (D) Japan Tobacco Companies recognise that creating a system to provide the EC and Member States with the effective and timely ability to track and trace sales of Japan Tobacco Cigarettes is an important component of their commitment to fight the trade in Illegal Product.
    [Show full text]
  • Introducing PKFWD a New Division of Phillips
    For immediate release: CONTACT Rachel McKnett Phillips & King International [email protected] Introducing PKFWD A new division of Phillips & King International offers retailers a path to new category growth. Phillips and King is pleased to announce the launch of PK>FWD. A new division of Phillips & King focused on curating and distributing top-selling alternative smoking accessories for the forward-thinking retailer. PK>FWD was created to address the evolution of the tobacco industry, offering forward-thinking progressive retailers a go-to destination for top-quality alternative accessories and products. The new website and buying guide is designed to specifically service headshops and smoke shops, but PK>FWD was also developed for the traditional tobacconists looking to grow their business into these profitable new categories. Phillips and King has an exceptional reputation for success, and with PK>FWD, they can help their customers minimize the risks of entering new markets by curating the right inventory to support business growth and increased profits. “Phillips and King has been in the tobacconist business for over 110 years, and specifically servicing the headshop and smoke shop categories for over 10 years” says Sergio Montolfo, General Manager of Phillips and King. “We have a long history of being THE company people turn to for quality offerings and industry insights. We know what sources to turn to, what products to sell, and what items are in demand at the consumer level. We’ve seen the alternative category grow exponentially over the last ten years, and are pleased to be on the forefront of the continued evolution with our new category-specific buying guide and website.
    [Show full text]
  • Travel Guide
    TRAVEL GUIDE Traces of the COLD WAR PERIOD The Countries around THE BALTIC SEA Johannes Bach Rasmussen 1 Traces of the Cold War Period: Military Installations and Towns, Prisons, Partisan Bunkers Travel Guide. Traces of the Cold War Period The Countries around the Baltic Sea TemaNord 2010:574 © Nordic Council of Ministers, Copenhagen 2010 ISBN 978-92-893-2121-1 Print: Arco Grafisk A/S, Skive Layout: Eva Ahnoff, Morten Kjærgaard Maps and drawings: Arne Erik Larsen Copies: 1500 Printed on environmentally friendly paper. This publication can be ordered on www.norden.org/order. Other Nordic publications are available at www.norden.org/ publications Printed in Denmark T R 8 Y 1 K 6 S 1- AG NR. 54 The book is produced in cooperation between Øhavsmuseet and The Baltic Initiative and Network. Øhavsmuseet (The Archipelago Museum) Department Langelands Museum Jens Winthers Vej 12, 5900 Rudkøbing, Denmark. Phone: +45 63 51 63 00 E-mail: [email protected] The Baltic Initiative and Network Att. Johannes Bach Rasmussen Møllegade 20, 2200 Copenhagen N, Denmark. Phone: +45 35 36 05 59. Mobile: +45 30 25 05 59 E-mail: [email protected] Top: The Museum of the Barricades of 1991, Riga, Latvia. From the Days of the Barricades in 1991 when people in the newly independent country tried to defend key institutions from attack from Soviet military and security forces. Middle: The Anna Akhmatova Museum, St. Petersburg, Russia. Handwritten bark book with Akhmatova’s lyrics. Made by a GULAG prisoner, wife of an executed “enemy of the people”. Bottom: The Museum of Genocide Victims, Vilnius, Lithuania.
    [Show full text]
  • Speculation About Options for Teen Tobacco Use Cessation in the Russian Federation
    TOBACCO INDUCED DISEASES Vol. 3, No. 3:1-15 (2007) © PTID Society Speculation about Options for Teen Tobacco Use Cessation in the Russian Federation Steve Sussman, Ulya Gufranova, & Andrey Demin University of Southern California, Schenenov Moscow Medical Academy, and Russian Public Health Association ABSTRACT: This paper summarizes prevalence and consequences, recent policies, prevention and cessation efforts, recent developmental work (focus groups), and speculation about the current status of cigarette smoking in the Russian Federation. Unique aspects of modern Russian society are suggested as leading to relatively high prevalence internationally of smoking among Russian males. Similar factors may lead to deflated smoking cessation attempt and quit rates. We believe that the future of tobacco control in Russia is close, but that it will involve raising the prices of tobacco products, enforcing no tobacco use policies among minors, ratification of the Framework Convention on Tobacco Control (FCTC) and implementation of evidenced-based tobacco use prevention and cessation programs. “Today I intend to tell you about tobacco the world, particularly among men, due -- like a people’s whim and disaster.” in large part to smoking. Russia like I. M. Dogel, a Russian pharmacologist. other countries deserves a healthy posterity. The negative influence of “The veritable civilization index tobacco on health currently is one of the isn’t a reach level and towns dimensions, most thoroughly investigated health not harvest abundance, but a person’s problems. It is known today that there is look which was cultivated by country” a cause-and-effect relation between (R.U.Emerson, American poet and smoking and many diseases, particularly philosopher in 19th century).
    [Show full text]
  • WT/DS406/R Page A-1 ANNEX a EXECUTIVE SUMMARIES of THE
    WT/DS406/R Page A-1 ANNEX A EXECUTIVE SUMMARIES OF THE FIRST WRITTEN SUBMISSIONS OF THE PARTIES Contents Page Annex A-1 Executive summary of the first written submission of Indonesia A-2 Annex A-2 Executive summary of the first written submission of the United States A-11 WT/DS406/R Page A-2 ANNEX A-1 EXECUTIVE SUMMARY OF THE FIRST WRITTEN SUBMISSION OF INDONESIA I. INTRODUCTION 1. The Republic of Indonesia ("Indonesia") challenges Section 101 of the Family Smoking Prevention and Tobacco Control Act of 2009 (the "Act"). In particular, Indonesia challenges the "special rule for cigarettes" in Section 101(b), which banned the production or sale of certain cigarettes it characterized as "flavored" (hereinafter the "Special Rule"). 2. According to the legislative history of the Act, the Special Rule was meant to stop cigarette manufacturers from targeting underage smokers with flavours intended to increase the appeal of smoking. One type of flavoured cigarette escaped the ban – menthol cigarettes. 3. Cigarettes may contain a variety of ingredients and flavours that are added to the tobacco or filter. There is, in short, "no logical difference", according to Professor Michael Siegel of Boston University, "between menthol and the hundreds of other flavor additives put into cigarettes", and that includes clove. 4. Clove cigarettes have been produced in Indonesia for over a century. It is estimated that as many as 6 million Indonesians are employed directly or indirectly in the manufacture of cigarettes and the growing of tobacco. The cigarette industry, including clove, accounts for approximately 1.66 per cent of Indonesia's total gross domestic product ("GDP").
    [Show full text]
  • 1 Chapter 11. Tobacco and Tobacco Related Devices
    CHAPTER 11. TOBACCO AND TOBACCO RELATED DEVICES § 11-1. License to sell--required; definitions. § 11-2. Same--Fee. § 11-3. Same--Grant or denial and issuance; expiration date. § 11-4. Same--Character of applicant; movable places of business and vending machines licenses prohibited; to be issued for sale only at single location. § 11-5. Same--Revocation or suspension, administrative penalties. § 11-6. Same--Not required of blind persons. § 11-7. Sales from vending machines prohibited. § 11-8. Sales to minors prohibited. § 11-9. Smoking by minors, possession or purchase of tobacco prohibited. § 11-10. Self-service merchandising. § 11-11. Sales of flavored tobacco products restricted. - - - Sec. 11-1. License to sell1--required; definitions. (a) For the purposes of this Chapter, the terms “tobacco” and “tobacco related devices” shall have the meanings given them in Section 609.685 of the Minnesota Statutes and as the same may from time to time be amended, and shall include electronic cigarettes defined as any electronic-smoking device that can be used to deliver nicotine or any other substances to the person inhaling from the device. The term shall include such devices whether they are manufactured as electronic cigarettes, electronic cigars, electronic pipes or any other product name; (b) No person or any clerk, servant, employee or agent of any such person shall, within the city, directly or indirectly upon any pretense manufacture, sell, exchange, barter or keep for sale any tobacco or tobacco related devices without first having obtained a license therefor. (Ord. No. 6577, § 1; Ord. No. 8971, 2-12-1990, § 1; Ord.
    [Show full text]
  • Manual for Developing Tobacco Control Legislation in the Region of the Americas
    Manual for Developing Tobacco Control Legislation in the Region of Americas Control Tobacco Developing Manual for Manual for Developing Tobacco Control Legislation in the Region of the Americas Health solutions for the poor Manual for Developing Tobacco Control Legislation in the Region of the Americas Sustainable Development and Environmental Health Area PAN AMERICAN HEALTH ORGANIZATION 525 Twenty- third Street, N.W. Washington, D.C. 20037, USA 2013 Also published in Spanish (2013) with the title: Manual para desarrollar legislación para el control del tabaco en la Región de las Américas. ISBN: 978-92-75-31746-4 PAHO HQ Library Cataloguing-in-Publication Data ************************************************************************************************************ Pan American Health Organization. Manual for Developing Tobacco Control Legislation in the Region of the Americas. Washington, DC : PAHO, 2013. 1. Smoking - legislation & jurisprudence. 2. Tobacco - adverse effects. 3. Tobacco Industry - legislation & jurisprudence. 4. Control and Sanitary Supervision of Tobacco-Derived Products. 5. Tobacco-Derived Products Publicity. 6. Consumption of Tobacco-Derived Products. 7. Americas. I. Title. ISBN 978-92-75-11746-0 (NLM classification: WA754 DA1) The Pan American Health Organization welcomes requests for permission to reproduce or translate its publications, in part or in full. Applications and inquiries should be addressed to Editorial Services, Entity of Knowledge Management and Communications (KMC), Pan American Health Organization, Washington, D.C., U.S.A. ([email protected]). The Area of Sustainable Development and Environmental Health will be glad to provide the latest information on any changes made to the text, plans for new editions, and reprints and translations already available. © Pan American Health Organization, 2013. All rights reserved.
    [Show full text]