industry focus
Free ports free-for-all could cause a considerable increase in illicit trade
The boss of the UK’s leading watchdog for fake goods has warned of the dangers posed by a rush to introduce free ports across Britain.
Phil Lewis, the director general of the Anti-Counterfeiting Group (ACG), says that the UK runs the risk of seeing significant growth in counterfeit goods, illicit trade and money laundering when the Government introduces regional free ports, as outlined by the Chancellor.
This month Rishi Sunak announced the location of eight new free ports and it is hoped they will help to generate trade and much needed employment in areas around Liverpool, Southampton, the Port of Tilbury, the Port of Sheerness and Prestwick Airport.
Also known as free trade zones, free ports are effectively duty-free areas, set up to facilitate lawful, cross-border trade by offering storage and distribution facilities to help smooth the export, transit and shipment of goods and services around the world.
In 2015, it was widely reported that well over 3,500 free zones existed around the world, employing around 66 million people and generating over EUR 365 billion (USD 500 billion) in added trade. Many supporters believe freeports will boost manufacturing and generate more jobs and investment across the UK.
However, on the day of the publication of the Anti-Counterfeit Group (ACG) annual report, Mr Lewis said he is deeply worried that criminals will seek to see misuse these free ports and this could result in an explosion of illicit trade.
He said “Free ports amplify illicit trade because they sit outside the home country’s jurisdiction. Often, they are lightly regulated which appeals to transnational crime groups and illegal activities.
"Unless enforcement and policing are strong, free ports can become transit points and distribution centres for counterfeit goods. Freeports have been found to facilitate the export of fakes by concealing and disguising consignments in mixed shipments accompanied by false transportation documents.”
He said “businesses need assurance there will be effective detection systems at these new freeports, including specialised officers and modern technology to assist surveillance, inspections and preventative customs controls. Without it, international criminals will take control of our borders.”
“The global trade in counterfeit goods is now worth more than $509 billion and it is destroying businesses and threatening the safety of consumers daily. This years’ annual report shows the scale and impact of counterfeit goods and the collaborative work necessary to tackle this insidious trade across the UK, Europe and internationally.”
