The following is excerpted from the 15 May 2013 news release by International Chamber of Commerce.
The report, Controlling the Zone: Balancing facilitation and control to combat illicit trade in the world’s Free Trade Zones, looks at the increasing vulnerability of FTZs to criminal activities that are facilitating the global trade of counterfeit and pirated products. It summarizes the circumstances that have enabled the exploitation of FTZs, including an examination of weaknesses in international agreements, national legislation and judicial enforcement.
National governments encourage the creation of FTZs to increase trade and attract investment by removing or reducing duties and tariffs, softening customs controls and largely decreasing oversight in FTZs. These incentives have simultaneously made it easier for criminals to set up illicit operations, with increasing evidence showing that FTZs are being exploited to facilitate the international trade in counterfeit and pirated goods…
The new report, presented this week at the 2013 World Customs Organization IT Conference and Exhibition in Dubai, aims to encourage governments to retake control of FTZs and ensure that national laws and customs procedures are effectively applied. It also aims to kick start a wider dialogue on how to address the abuse of and illicit activities within FTZs because of the impact these activities have on all sectors of society…
This article is available in its entirety at: http://www.iccwbo.org/News/Articles/2013/New-report-calls-for-actions-to-stop-counterfeiting-and-piracy-in-Free-Trade-Zones/.