Strengthening International Collaboration is the Cornerstone to Combat Illicit Trade

Bhubaneswar- 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.”