Three distinct but inter-related forms of illicit trade co-exist: Counterfeiting of legitimate products; Smuggling of genuine products; Evasion or under-reporting of production to avoid tax obligations.
- Damages economic development and supports corrupt practices
- Weakens government policies and the rule of law
- Helps to finance organised crime
- Undermines investment in industry and the business of legitimate traders
Their goal is to increase the visibility of counterfeiting, smuggling, and activities like diversion into 'grey' markets. To achieve this objective, governments working with SICPA can implement proven security excise tax stamps and security banderols, unique coding, production control, product authentication features, and secure track & trace.