About Rs 39,000-crore loss in one year due to illicit markets in manufacturing sectors: FICCI report
Illicit market in just seven select manufacturing sectors including FMCG, packaged foods, tobacco, alcohol and mobile phones had led to a loss to the nation to the tune of Rs 32,239 crore during 2014, a report released by FICCI said on Tuesday. The FICCI report prepared by its Committee Against Smuggling and Counterfeiting Activities Destroying the Economy and titled “Illicit Market: A Threat to Our National Interest” released here said the loss was inclusive of both direct and indirect taxes, with the indirect taxes component working out to a whopping Rs 34,020 crore. While counterfeiting and illicit trade in tobacco products accounted for the maximum revenue loss – nearly 23 per cent of the total loss which works out to about Rs 9139 crore, mobile phones accounted for 17 per cent (Rs 6705 crore), alcohol 16 per cent (Rs 6309 crore), and FMCG packaged food also about 16 per cent (Rs 6096 crore), the report said. The study also revealed that during the course of two years from 2011-12 to 2013-14, revenue loss to the government had grown exponentially by Rs. 13,049 crores, an increase by 49.8 per cent. Assam, the report said, has seen a significant growth in illicit trade among these sectors in the last couple of years with the state emerging as one of the fastest growing markets for illegal cigarettes and alcohol in the entire country.
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Transcarpathian smugglers to be sent to fight in Donbas
Three smugglers caught red-handed will be sent to the military enlistment office for mobilization, head of the Transcarpathian regional authorities Hennadiy Moskal said. “Since last week the Transcarpathian region has been actively searching for places used to hide illegal migrants and tobacco products intended for smuggling. For the past two days three local residents who tried to traffic six boxes of cigarettes across the border were detained on the green border. The cigarettes were seized and the detainees [men of recruitment age] were sent to the military enlistment office for mobilization in the Ukrainian armed forces,” the regional head’s website said in a statement. Monday, July 20, six boxes of cigarettes were found in a cargo wagon of the train which was delivering the ore abroad. The law enforcers are searching for masterminds of this smuggling scheme. It was also reported that a hang-glider was detected near the border, took off and headed for Slovakia when the border guards began approaching. The regional chief said that the number of smuggling attempts had dropped sharply in the Trans-Carpathian Region as compared with the previous reported period. Meanwhile, employees of military enlistment offices cannot find people put on the law enforcement database as smugglers [there are 2,500 of them in the region] to hand draft notices to them. The sixth wave of mobilization has been fulfilled only by 10% in the Transcarpathian region by now.
http://en.interfax.com.ua/news/general/279496.html
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Ho Chi Minh police seize five tons of counterfeit cosmetics
The National Steering Committee on Prevention and Control of Smuggling, Trade Fraud and Counterfeit Goods and Ho Chi Minh City’s economic police have seized a huge haul of counterfeit cosmetics in the city’s District 6. Some five tons of fake beauty products were discovered at a storage area of Huyen Trang Cosmetic Company, according to a report in Viet Nam News. The products were registered as imported from France, South Korea and Japan, but were found to have been produced in China and smuggled into the country. The haul was part of a wider operation to crack down on a large smuggling ring in the city thought to be trafficking fake goods masquerading as imported products from brands such as Sasaki, Hikato and Puroz, which command a high price on the Vietnamese market. The investigators reportedly found falsified ‘Made in Japan’ and ‘Made in Korea’ labels at the scene.
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Fakes are costing Europe’s fashion industry
It’s exceedingly easy to buy knock-offs of European luxury brands. They’re so common people hardly pay them any mind. But their prevalence is actually a major problem, and it’s undermining Europe’s fashion industry.Counterfeits cost European brands the value of 9.7% of their total sales every year, or a staggering €26.3 billion ($28.7 billion), according to a new report by Europe’s Office for Harmonization in the Internal Market (OHIM). Those lost sales ripple outward, resulting in approximately 363,000 lost jobs across the manufacturing, retail, and wholesale sectors of Europe’s fashion industries.
Lear MoreAlibaba’s anti-counterfeit codes
Consumer goods giant Unilever has joined forces with Alibaba in a programme that aims to prevent counterfeits on the online retailer’s sites. The Chinese arm of Unilever has signed a memorandum of understanding with Alibaba that -alongside initiatives to expand distribution of consumer goods – will also see Unilever brands carry a new QR code-based technology that the company recently adopted to help fight counterfeits. The QR codes “will help consumers easily identify counterfeit products with [a] mobile app and provide a special shopping experience for the consumer” and will be added to Unilever’s products initially on a trial basis. The codes are being supplied by Visualead, an Israeli start-up in which Alibaba bought a minority stake earlier this year, and according to earlier reports be supplied to companies who request them at no cost. Unilever has had a dedicated storefront on Alibaba’s Tmall since 2011 and has since also started making use of the online retailer’s Tmall Global platform for sales outside China – but the new agreement calls for much closer cooperation between the companies both on- and off-line. The deal will result in expanded distribution channels – giving customers in rural China better access to Unilever products for example – and also see the two companies working on a ‘big data’ approach to advertising and driving sales.
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Cigarettes Smuggled From Ukraine
“The results of the searches are being compiled together and will be announced later, but today, we can say that the main supplier of cigarettes, which are smuggled abroad, is Lviv Tobacco Factory,” he said. “Some of the seized cigarettes are Belarusian, and this means that there is a “window” for the smugglers in Chernihiv region on the border with Belarus,” Moskal said. He added that in order to boost up the fight against smuggling beyond checkpoints along Zakarpattia region, the checkpoints with customs officers, personnel of the State Border Guard Service, the Interior Ministry, the Security Service of Ukraine and the State Fiscal Service had been established on all four mountain passes, leading to the region. “These checkpoints will not allow imports of large wholesale lots of cigarettes (including those lacking excise stamps) and counterfeit spirits to Zakarpattia, and exports of round timber from Zakarpattia region,” Moskal said. As UNIAN reported earlier, the smuggling is considered to be the main reason for July 11 conflict in the town of Mukacheve between the Right Sector and the people close to Mykhailo Lanyo, Ukrainian MP, which resulted in a shootout. According to representatives of the Right Sector organization, Lanyo, himself, had called them to hold talks, because the Right Sector started interfering with the flows of contraband.
http://charter97.org/en/news/2015/7/22/160902/
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Conviction for cigarette smuggling
A 49-year-old man was arrested on Tuesday, after police found a large quantity of smuggled cigarettes in his possession. Acting on a court order, officers pulled over the 49-year old at around 9am and confiscated two cartons of smuggled cigarettes. Upon further investigation, police found a van parked at the house of a relative, loaded with 1,214 cigarette cartons, 7 packs of cigarettes and 295 50gramme tobacco packs. Police were led to the 49-year-old after receiving an anonymous tip. Another 88 cartons and 5 tobacco packs were discovered at a third vehicle. According to Customs and Excise officials, the cigarettes appear to have originated from the non-government controlled areas. The suspect is expected to appear before court on Wednesday.
http://cyprus-mail.com/2015/07/21/man-arrested-for-cigarette-smuggling/
Lear MoreCounterfeit products seized, Liverpool
Police seized almost $60,000 worth of illegal tobacco products and counterfeit electronics goods during raids on six tobacconists in Sydney’s south-west today. The search warrants were the result of Strike Force Recnac, which was formed in April 2015 to investigate the sale of illicit tobacco products from multiple retail premises within the Liverpool CBD. Police conducted five of the warrants simultaneously at 10am today (Tuesday 21 July 2015) at tobacconists on Macquarie Street and Bigge Street, and a mini-mart on Macquarie Street. A sixth warrant was carried out later in the day at another Macquarie Street tobacconist. During today’s searches, officers seized almost $50,000 worth of illegal and/or counterfeit tobacco products, including cigarettes, cigars, chop chop (loose tobacco), shisha-flavoured tobacco, and counterfeit plain packaging. Police also allegedly located counterfeit electronics items – including cables, tablets and phones – with an estimated potential street value of more than $10,000. In addition, police seized more than $7000 in cash; it will be alleged this is proceeds of crime.
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Fake Mac makeup Seller Convicted
New Port Richey, Florida – A 45-year-old New Port Richey woman is accused of using the notoriety of a top cosmetic brand to make more than a million dollars by selling fake MAC brand cosmetics online. A federal judge sentenced Tina Oleszczuk to 18 months in federal prison and she has to pay MAC $961,744.75 According to court documents, from March 2012 to March 2014, Oleszczuk, through her company, Cozmetic Delights LLC, sold more than $1 million worth of counterfeit Make-up Art Cosmetics, Inc. (“MAC”) cosmetics out of her New Port Richey home. Investigators say she purchased and had bulk quantities of counterfeit MAC cosmetics delivered from a source in China and then she sold the counterfeit cosmetics as legitimate goods at significantly higher prices.
Lear MoreIllegal tobacco trade busted
An investigation is under way after test shoppers found tobacco was being illegally sold in Morecambe. A global cigarette firm bought non-duty paid tobacco at locations across Morecambe and will hand the evidence to Trading Standards. The tobacco and cigarettes haul is thought to include counterfeit versions of genuine tobacco brands and products made specially to be smuggled into the UK to avoid paying tax and sold on illegally, also known as illicit whites. David Morris, MP for Morecambe and Lunesdale, also saw the evidence for himself and said he was “extremely shocked” at the extent of the illegal tobacco trade The test purchases were carried out by Japan Tobacco International (JTI) whose brands include Benson & Hedges and Silk Cut. A JTI spokesman said: “The impact of the illicit trade in tobacco on society is far reaching and members of the public, retailers, suppliers and the Government all have a role to play to combat the issue. Criminals who deal in illegal tobacco will sell to all-comers, including children. JTI fully supports any efforts to rid our streets of illegal tobacco and stop criminals infiltrating our communities.
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