Strengthening International Collaboration is the Cornerstone to Combat Illicit Trade

 

India, 2024-- In a speech at the recently held Asia Security: Anti-counterfeiting, Trademark, and Brand Protection conference, Rodney Van Dooren, Head - Illicit Trade Prevention, Philip

Morris International (PMI) highlighted how international collaboration is the cornerstone to

combat illicit trade along with stringent regulation and enforcement, to curb this menace. He

further pointed out how prohibition has not been a viable option, while regulation and

enforcement would be the solution to curb illicit trade. The two-day conference held on

23 rd  and 24 th  of July in Delhi was focused on the theme, 'The Power of Collaboration and Unity in the Fight Against Illicit Trade and Counterfeiting'. It witnessed participation from brand owners,

regulators, law enforcement agencies, government, policymakers, and security solution

providers discussing the impact of illicit trade on government, brands, and the society.

Speaking on the need for co-operation between source, transit, and destination country

Governments, Rodney Van Doreen, Head of Illicit Trade Prevention, Philip Morris

International (PMI) said,"Approximately 12% of the global cigarettes consumed are illicit

which impacts Governments across the globe to the tune of $40.5 billion in tax losses. According to

the Euromonitor report, one in four cigarettes consumed in India is illicit which translates to close to $2

billion in tax losses. There are various smuggling routes around the world for both counterfeit and

contraband products making this challenge not a domestic but a transnational issue that requires transnational solution."

Explaining the web of illicit cigarette trade, he elaborated on how in every corner of ASEAN and

beyond, the intricate web of illicit trade connects actors in source countries. Be it in the tobacco

fields where the leaves were harvested, to the heart of a bustling city where the production of

illegitimate and counterfeit cigarettes was thriving, to transit countries, and destination

countries. The trade of illicit cigarettes has become a profitable venture for the unscrupulous.

"Is cooperation between all these actors essential to prevent illicit trade? The answer lay in the

tendrils that connected them all. Like a spider's web, the illicit trade relied on the delicate

balance of each strand. Sever one, and the entire structure would crumble," he added.

On PMI's strategy to counter illicit trade, he highlighted that the focus is on research &

intelligence, protecting supply chain, partnerships, cooperation with law enforcement and

raising awareness.

Sharing his recommendations on addressing the larger transnational issue of illicit trade,

Rodney added, "Authorities need to better leverage the existing free trade agreements and

provisions within the World Trade Organization (WTO) to raise awareness with transit and

source countries, including India, to take responsibility of what's happening in their country.

The next recommendation is to promote harmonization of existing gold standard regulations

around ASEAN, supported by implementing rules, including the law enforcement agency that

has jurisdiction and the related penalties.

The adoption of the regulation requires manufacturers and exporters to ensure that the goods

being exported comply with the destination market regulation. Additionally in transshipment,

adopt regulation that allows for inspection of suspicious shipments and exercise jurisdiction by

Customs or any appropriate law enforcement agency on IP-infringing violations. Lastly,

strengthen domestic enforcement effectiveness by enhanced cooperation with the legal

industry and inter-law enforcement agency cooperation."

The conference attracted international audience of leading specialists engaging in discussions

about the latest trends, developments, threats, and solutions pertaining to illicit trade and

counterfeiting across various industries. It provided a unique opportunity to delve into winning

strategies, successful case studies, and cutting-edge technologies, with a particular emphasis on

the Asia-Pacific (APAC) region.