Mapping the real routes of trade in fake goods
Contents
Preface
Preface 1 Executive summary 2 The key producers and transit points for fake goods 4 Main producers and transit points of fakes shipped to the EU, 2011-2013 6 Foodstuff 8 Pharmaceuticals 12 Perfumery and cosmetics 16 Leather articles and handbags 20 Clothing and fabrics 24 28 Footwear Jewellery 32 Electronics and electrical equipment 36 Optical, photographic and medical equipment 40 Toys, games and sports equipment 44
Globalisation, trade facilitation, and the rising economic importance of intellectual property are drivers of economic growth. However, they have also created new opportunities for criminal networks to expand the scope and scale of their operations, free-riding on intellectual property and polluting trade routes with counterfeit goods. The consequences for the economy are serious. Trade in counterfeit goods not only damages economic growth but also undermines good governance, the rule of law and citizens’ trust in government, and can ultimately threaten political stability. In some cases, the fakes can also have serious health, safety and environmental implications. Precise information about the routes of trade in counterfeit goods is essential for tailoring effective governance responses to this scourge. The complexity of the routes of trade in fakes can be a formidable obstacle for enforcement authorities.
We are very pleased that our two institutions were able to work together to analyse a unique set of global customs seizure data to chart the routes of trade in fake goods. We are also grateful to the World Customs Organization, the European Commission’s DirectorateGeneral for Taxation and Customs Union, and the United States Department of Homeland Security for providing excellent data on customs seizures of IP-infringing products. We are confident that this research will make a major contribution to the understanding of trade in counterfeit and pirated goods. We trust that it will help governments develop targeted policy responses and strengthen governance frameworks to tackle this phenomenon.
António Campinos Executive Director, EUIPO
Rolf Alter Director, OECD/GOV
PREFACE . 1
Executive summary Trade in counterfeit and pirated goods is a worldwide phenomenon that is growing in scope and magnitude. Globalisation, trade facilitation, and the rising economic importance of intellectual property have been fuelling economic growth on the one hand, while on the other opening up new opportunities for criminal networks to expand the scope and scale of their operations, with serious negative consequences for the economy and society. Trade in counterfeit pirated goods also undermines good governance, the rule of law and citizens’ trust in government, and can ultimately threaten political stability. Parties that engage in the trade of counterfeit and pirated products tend to ship infringing products via complex routes, with many intermediary points. The transit points are used to i) facilitate falsification of documents in ways that camouflage the original point of departure, ii) establish distribution centres for counterfeit and pirated goods, and iii) repackage or re-label goods. In addition, while imports of counterfeit goods are, in most cases, targeted by local enforcement authorities, goods in transit are often not within their scope, which means they are less likely to be intercepted.
2 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
This study assesses the complex routes associated with the global trade in counterfeit and pirated goods. It is important to note that higher reported shares of custom seizures, as well as higher reported estimates for being a source of counterfeited products (i.e. the GTRIC-e scores), do not necessarily suggest that an economy is a significant producer of counterfeits. The analysis in this study uses a set of statistical filters to go further in clarifying the role of important provenance countries. It identifies key producing economies and key transit points for ten main sectors that are particularly vulnerable to counterfeiting. These sectors span a wide range of IP-intense, tradable goods, including fast-moving-consumer goods such as foodstuff or cosmetics, to business-to-business products, such as spare parts and computer chips. The combined trade of fakes in these sectors account for USD 284 billion in 2013 (EUR 208 billion in 2013), more than half of total estimated trade in fake goods. In the analysis, the People’s Republic of China (hereafter “China”) emerges as the top producer of counterfeit goods in nine out of ten analysed categories. In addition, several Asian economies, including India, Thailand, Turkey, Malaysia, Pakistan and Viet Nam are important producers in many sectors, although their role is much less significant than China’s. Turkey appears to be an important producer in some
sectors – such as leather goods, foodstuff and cosmetics – which are sent by road to the EU.
fewer than ten items accounted for about 43% of all shipments, on average.
The data identifies several important transit points for trade in counterfeits, including Hong Kong (China), the United Arab Emirates and Singapore, which are handling trade in counterfeit goods in all the analysed product categories. Fake goods arrive in large quantities in containers and are sent further in small parcels by post or courier services.
This analysis can inform policy discussions among individual governments or on a regional or global level that aim to prevent, reduce or deter trade in counterfeit and pirated goods. It can help in designing more tailored policy responses to strengthen governance frameworks aiming to tackle this risk. The report calls for more indepth analysis for the development of efficient enforcement and governance frameworks in three areas:
In addition, there are some important regional transit points. For example several Middle Eastern economies (e.g. the United Arab Emirates, Saudi Arabia and Yemen) are important transit points for sending fake goods to Africa. Four transit points – Albania, Egypt, Morocco and Ukraine – are of particular significance for redistributing fakes destined for the EU. Finally, Panama is an important transit point for fakes en route to the United States.
l
the role of free trade zones in transhipments
l
the detection problem posed by small shipments
l
the economic features of provenance economies, including the quantitative relationship between the intensities of counterfeiting and indices of free trade, quality of governance, and public sector integrity.
Finally, the data show that small shipments and parcels tend to dominate numerous trade routes, reflecting the shrinking costs of postal and courier shipments and the increasing importance of Internet and e-commerce in international trade. Shipments with EXECUTIVE SUMMARY . 3
The key producers and transit points for fake goods
$461bn
total import value of counterfeit & pirated goods in 2013 Ukraine Armenia Azerbaijan
Albania Tunisa Morocco
Mexico HIGH INTENSITY of producing or transiting fakes
Belize Panama
Turkey Egypt
Nigeria
China
Undetermined
Transits
Producers
LOW INTENSITY of producing or transiting fakes
The probability for producing fakes is based on the average GTRIC scores for the analysed economy. For more details on the GTRIC index see the OECD/EUIPO report.
4 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
$121bn Electronics & electrical equipment $41bn Jewellery $13bn Footwear
Mongolia
$29bn Optical, photographic & medical equipment $12bn Foodstuff
$10bn Toys
$9bn Leather products
$28bn Clothing & textile fabrics
$16bn Pharma
$5bn Perfumery
Kuwait
Iran Hong Kong (China) Pakistan United Macau (China) Arab Bangladesh Emirates Philipines Yemen India Thailand Cambodia Malaysia Kenya Singapore
Saudi Arabia
Ethiopia
Indonesia Paraguay
Values of trade in fakes in ten of the top product categories
63%
of all seized fakes were shipped by postal & express services. Growing challenge for law enforcement!
Transportation modes by value of seizures 73% Sea
8% Postal & express service
1% Rail
11% Air
7% Road MAIN PRODUCERS AND TRANSIT POINTS FOR FAKE GOODS . 5
Main producers and transit points of fakes shipped to the EU, 2011-2013
Morocco
Tunisia Senegal
HIGH INTENSITY of producing or transiting fakes
Mongolia
Turkey
Nigeria
Saudi Arabia
China United Arab Emirates
Pakistan India Thailand
Undetermined
Transits
Producers
Singapore
LOW INTENSITY of producing or transiting fakes
€21bn Electronics & electrical equipment
€2.6bn Toys
Armenia
Lebanon Iran Kuwait Egypt
total import value of counterfeit & pirated goods in 2013
Values of trade in fakes in ten of the top product categories
€6bn Optical, photographic & medical equipment
Ukraine Albania
€85bn
Hong Kong (China) Macau (China) Vietnam Malaysia
Philipines
67.5%
of all fakes seized in the EU were shipped by postal & express services. Growing challenge for law enforcement!
€2.3bn Foodstuff
€5bn Clothing & textile fabrics €2bn Leather products
€1.8bn Jewelery
€5bn Pharmaceuticals
€4bn Footwear
€0.6bn Perfumery
Transportation modes by value of seizures 61% Sea
18% Postal & express service
13% Air
8% Road
The probability for producing fakes is based on the average GTRIC scores for the analysed economy. For more details on the GTRIC index see the OECD/EUIPO report.
6 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
MAIN PRODUCERS AND TRANSIT POINTS OF FAKES SHIPPED TO THE EU, 2011-2013 . 7
Globally, China, India and several other smaller Asian economies (Pakistan, Indonesia, Viet Nam and Thailand) are the main producers of counterfeit foodstuff. They export directly to the US, the EU, Japan, Western Africa (Benin, Senegal, Nigeria), Northern Africa (Morocco, Algeria) and Yemen; or indirectly, through Saudi Arabia, the UAE and Yemen, to other Gulf region economies.
FOODSTUFF
8 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
Regionally, Turkey is a relatively significant producer of counterfeit food products, and exports them to the EU countries and to Serbia, Yemen, or (indirectly) to Saudi Arabia. Ethiopia and Kenya are also identified as producers of fake food products for export to Saudi Arabia and Yemen. Most counterfeit foodstuff is shipped in large quantity shipments, either in containers by sea or by air. FOODSTUFF . 9
The key trade routes for fake foodstuff
1.2%
the total share of fakes in global trade in food products
Transportation methods for counterfeit foodstuff (as a percentage of total seizures) 56% Air
2% Rail
37% Sea
Turkey Iran
Egypt
United Arab Emirates
Saudi Arabia
HIGH INTENSITY of producing or transiting fakes
Ethiopia
Pakistan
China
Thailand Indonesia
Size of shipments
Some of the most common seizures of food products Cookies & Sweets
Bananas
Drinks
Sweets
Tea & Coffee
6-10 items 0.4%
Undetermined
Transits
Producers
>10 items 99%
LOW INTENSITY of producing or transiting fakes
1% Mail
Vietnam
Yemen Kenya
4% Road
India
The probability for producing fakes is based on the average GTRIC scores for the analysed economy. For more details on the GTRIC index see the OECD/EUIPO report.
10 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
$12bn
the global trade value of fake foodstuff
2-5 items 1% 1 item 0.2% FOODSTUFF . 11
PHARMACEUTICALS
12 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
India and China are the largest identified producers of counterfeit pharmaceuticals. They are shipped all around the globe, with a special focus on African economies, Europe and the US. In addition, Singapore is also indicated as a potential producer of fake pharmaceuticals. Hong Kong (China) is one of the most important transit points for counterfeit pharmaceuticals, mainly exporting them by post to the US, Europe, Japan and some South American economies in small parcels. Other relevant transit points for fake pharmaceuticals include Yemen, the United Arab Emirates and Iran. From these countries, fake pharmaceuticals are reshipped either to African economies such as Egypt or Ethiopia by air and sea, or to Europe and the US by mail. PHARMACEUTICALS . 13
The key trade routes for fake pharmaceuticals
Albania Lebanon Belize HIGH INTENSITY of producing or transiting fakes
3.3%
the total share of fakes in global trade in pharmaceuticals
13% Air
China
United Arab Emirates Yemen
India
1% Road
Hong Kong (China) Singapore
Size of shipments
Some of the most common seizures of pharmaceuticals HIV and Aids drugs
Cancer drugs
Medical supplies
Medical equipment
6-10 items 7%
Undetermined
Transits
Producers
82% Mail
4% Sea
Iran
>10 items 85%
LOW INTENSITY of producing or transiting fakes
Transportation methods for counterfeit pharmaceuticals (as a percentage of total seizures)
The probability for producing fakes is based on the average GTRIC scores for the analysed economy. For more details on the GTRIC index see the OECD/EUIPO report.
14 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
$16.2bn
the global trade value of fake pharmaceuticals
2-5 items 6% 1 item 2% PHARMACEUTICALS . 15
Generally, China is the key producer of counterfeit perfumes and cosmetics preparations that are shipped throughout the globe. Counterfeit perfumes and cosmetics produced in Malaysia, Thailand, India and Singapore are generally exported to the EU, the US, Saudi Arabia and Kuwait. Finally, Turkey is a regional producer exporting counterfeit perfumery and cosmetics almost exclusively to the EU.
PERFUMERY AND COSMETICS
16 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
Trade routes for counterfeit perfumery and cosmetics are very complex. Hong Kong (China) is the key transit hub for the fakes produced in China, which are then exported throughout the world. The United Arab Emirates and Kuwait receive counterfeit pharmaceuticals mainly from China, and re-export them notably to the EU and to Africa. Regionally, Albania is an important transit point for fake perfumes and cosmetics on the way from Turkey to the EU. Fake perfumes and cosmetics produced in China, Malaysia, Thailand, India, and Singapore are shipped to the OECD countries mostly by postal parcels. Shipments to the Middle East and African economies are carried mostly by sea or air. Lastly, counterfeit perfumery and cosmetics exported from Turkey to the EU are transported by road. PERFUMERY AND COSMETICS . 17
The key trade routes for fake perfumery and cosmetics
4.7%
the total share of fakes in global trade in perfumery and cosmetics
Transportation methods for counterfeit perfumery and cosmetics (as a percentage of total seizures) 51% Mail
28% Road
15% Sea
Belarus Albania
Ukraine China
Turkey Kuwait
HIGH INTENSITY of producing or transiting fakes
Panama
India United Arab Emirates Thailand
6% Air
Hong Kong (China) Malaysia Singapore
Size of shipments
Undetermined
Transits
Producers
>10 items 8%
LOW INTENSITY of producing or transiting fakes
The probability for producing fakes is based on the average GTRIC scores for the analysed economy. For more details on the GTRIC index see the OECD/EUIPO report.
18 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
$5.3bn
the global trade value of fake perfumery and cosmetics
Some of the most common seizures of perfumery and cosmetics Perfumes
Cosmetics
Make up
Creams
Nail sets
6-10 items 13% 2-5 items 17% 1 item 62% PERFUMERY AND COSMETICS . 19
LEATHER ARTICLES AND HANDBAGS
20 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
China is the main producer of counterfeit leather articles and handbags. Fakes are exported across the globe either directly, or using several large trade hubs, such as Hong Kong (China) and Macau (China) and Kuwait. Other regional producers of counterfeit leather articles and handbags include Cambodia, the Philippines, Thailand, Indonesia and Malaysia. They export fakes directly to the EU and the US. Finally, Turkey and Tunisia are also indicated as important producers that particularly target the EU. Postal parcels were the main conveyance method for fake leather goods used by counterfeiters in producing economies and transit points to ship goods to the US and the EU. Air and sea transport were used for sending counterfeit leather articles and handbags from producing economies to transit points. LEATHER ARTICLES AND HANDBAGS . 21
The key trade routes for fake leather articles and handbags
11.5%
the total share of fakes in global trade in leather articles and handbags
Transportation methods for counterfeit leather articles and handbags (as a percentage of total seizures) 51% Mail
28% Road
15% Sea
Belarus Ukraine Morocco
Albania
Kuwait
Tunisia Egypt
HIGH INTENSITY of producing or transiting fakes
China
Turkey United Arab Emirates
Macau (China) Thailand Malaysia
6% Air
Hong Kong (China) Cambodia Philippines Singapore
Size of shipments
Undetermined
Transits
Producers
>10 items 33%
LOW INTENSITY of producing or transiting fakes
The probability for producing fakes is based on the average GTRIC scores for the analysed economy. For more details on the GTRIC index see the OECD/EUIPO report.
22 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
$8.6bn
the global trade value of fake leather articles and handbags
Some of the most common seizures of leather articles and handbags Handbags
Wallets
Gloves
Luggage
Belts
6-10 items 7% 2-5 items 21% 1 item 39% LEATHER ARTICLES AND HANDBAGS . 23
China is the main producer of counterfeit clothes and textile fabrics. In addition, Viet Nam, Thailand, Cambodia and Malaysia also appear as important producers, exporting them across the globe, either directly, or via Hong Kong (China) and Singapore. India, Pakistan and Bangladesh are also important producers of counterfeit textile articles, which they ship to the EU, the US, Kuwait and Saudi Arabia. Finally, Turkey, Tunisia and Morocco are also
CLOTHING AND FABRICS
24 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
indicated as important producing economies, mostly destined for the EU. The main transit hubs for the trade in fake clothes and fabrics include Hong Kong (China), Singapore and the United Arab Emirates. Fake clothes and fabrics enter the EU and the US from producing economies and transit hubs mostly in the post. Air and sea transport are used for exporting fake clothes and fabrics from producing economies to transit points. Finally, road transport is used for trafficking fake clothes and fabrics from Middle Eastern transit economies to the EU. CLOTHING AND FABRICS . 25
The key trade routes for fake clothing and fabrics
11%
the total share of fakes in global trade in clothing and fabrics
Transportation methods for counterfeit clothing and fabrics (as a percentage of total seizures) 46% Mail
33% Air
15% Road
Ukraine China
Azerbaijan Morocco
HIGH INTENSITY of producing or transiting fakes
Honduras Panama
Turkey
United Arab Emirates
India
6% Sea
Hong Kong (China) Vietnam
Thailand Singapore
Peru
Size of shipments
Undetermined
Transits
Producers
>10 items 30%
LOW INTENSITY of producing or transiting fakes
The probability for producing fakes is based on the average GTRIC scores for the analysed economy. For more details on the GTRIC index see the OECD/EUIPO report.
26 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
$27.7bn
the global trade value of fake clothing and fabrics
Some of the most common seizures of clothing and fabrics Shirts
Suits
Coats
Blouses
Fabric
6-10 items 12% 2-5 items 27% 1 item 31% CLOTHING AND FABRICS . 27
China is the main producer of counterfeit footwear, followed by the Philippines, Thailand, Viet Nam and Malaysia. Fake footwear is shipped from these economies directly to the EU, the US, Kuwait, Saudi Arabia, Qatar, Australia, Japan, Korea and numerous economies located throughout the African and the South American continents. They are also shipped to some trade hubs, such as Hong Kong (China) and Singapore. In addition India and Pakistan also appear to be important producers of counterfeit footwear, which is shipped directly to the EU, the US, Kuwait and Saudi Arabia. Finally, Turkey and Morocco are also indicated as important producers of fake footwear, targeting the EU. Hong Kong (China), Singapore and the United Arab Emirates are the main global transit points. Regionally, Albania, Bosnia and Herzegovina, and Morocco are
FOOTWEAR
28 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
important transit points for counterfeit footwear shipped to the EU, while Panama is an important transit point for fake footwear en route to the US. Most counterfeit footwear is shipped by mail in small consignments of up to five items. FOOTWEAR . 29
The key trade routes for fake footwear
10.5%
the total share of fakes in global trade in footwear
Armenia Morocco Honduras HIGH INTENSITY of producing or transiting fakes
Senegal
United Arab Emirates
Panama
Hong Kong (China) Thailand Vietnam Malaysia Philippines Singapore
10% Air
2% Sea
Size of shipments
Some of the most common seizures of footwear Trainers
Dress shoes
Boots
Flat shoes
Sandals
6-10 items 4%
Undetermined
Transits
85% Mail
China
>10 items 8% Producers
3% Road
Azerbaijan Iran Turkey
Peru
LOW INTENSITY of producing or transiting fakes
Transportation methods for counterfeit footwear (as a percentage of total seizures)
The probability for producing fakes is based on the average GTRIC scores for the analysed economy. For more details on the GTRIC index see the OECD/EUIPO report.
30 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
$13.3bn
the global trade value of fake footwear
2-5 items 24% 1 item 64% FOOTWEAR . 31
China is the main producer of fake jewellery, followed by Indonesia, Malaysia, Thailand and Viet Nam. Counterfeit jewellery is shipped from these economies directly to Europe, the US, Kuwait, Saudi Arabia, Qatar and to large trade hubs: Hong Kong (China), Macau (China) and Singapore. The destination economies for the fake jewellery exported from China include Australia, Japan, Korea and numerous economies located throughout the African and the South American continents.
JEWELLERY
32 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
The main transit points for trade in counterfeit jewellery are Hong Kong (China), Macau (China) and Singapore. Other important transit points for this type of product include Saudi Arabia and the United Arab Emirates. Lastly, Morocco is an important transit point for fake jewellery transported to the EU. JEWELLERY . 33
The key trade routes for fake jewellery
4.8%
the total share of fakes in global trade in jewellery
Transportation methods for counterfeit jewellery (as a percentage of total seizures) 61% Mail
6% Sea 28% Air
Ukraine China Morocco
Turkey Saudi Arabia
HIGH INTENSITY of producing or transiting fakes
Armenia United Arab Emirates
Panama
Macau (China)
5%
Hong Kong (China) Vietnam
Thailand Malaysia
Singapore Indonesia
Size of shipments
LOW INTENSITY of producing or transiting fakes
Precious stones
Precious metal
Gold
Pearls
Fashion jewellery
6-10 items 9%
Undetermined
Transits
Producers
>10 items 48%
Some of the most common seizures of jewellery
The probability for producing fakes is based on the average GTRIC scores for the analysed economy. For more details on the GTRIC index see the OECD/EUIPO report.
34 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
$40.9bn
the global trade value of fake jewellery
2-5 items 23% 1 item 20% JEWELLERY . 35
China is the main producer of counterfeit electronics and electrical equipment, which it exports throughout the globe. Other minor producers include Thailand, Korea, India and Singapore. Mexico is a regional producer of
ELECTRONICS AND ELECTRICAL EQUIPMENT
36 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
fake electronic equipment targeting the US market. Hong Kong (China) is the largest transit point for counterfeit electronics and electrical equipment produced in China and Thailand and re-exported throughout the globe. The United Arab Emirates is also a central transit point for re-exports to Africa through large containers by sea, but also by road to other Middle East economies and by mail and air to the EU. Regionally, Egypt and Turkey are transit points for fake electronics being shipped to the EU. Belize, Guatemala and Panama are key transit points for counterfeit electronic and electrical goods targeting the US. Parcels were mostly used by counterfeiters located in producing economies and in Hong Kong (China) to reach OECD countries. Air and sea transport were used for trade flows of counterfeit electronics and electrical products transported from producing economies to transit points, or from some transit points to the EU. ELECTRONICS AND ELECTRICAL EQUIPMENT . 37
The key trade routes for fake electronics and electrical equipment
China
Azerbaijan
Mexico HIGH INTENSITY of producing or transiting fakes
Egypt
Belize Panama
Nigeria
United Arab Emirates
India Thailand
5.3%
the total share of fakes in global trade in electronics and electrical equipment
Transits
Producers
Undetermined
The probability for producing fakes is based on the average GTRIC scores for the analysed economy. For more details on the GTRIC index see the OECD/EUIPO report.
38 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
25% Air
3% Road
Hong Kong (China) Cambodia
Size of shipments >10 items 48%
LOW INTENSITY of producing or transiting fakes
66% Mail
6% Sea
Korea
Singapore
$121bn
Transportation methods for counterfeit electronics and electrical equipment (as a percentage of total seizures)
the global trade value of fake electronics and electrical equipment
Some of the most common seizures of electronics and electrical equipment Mobile phones
Headphones
Batteries
Speakers
Microphones
6-10 items 7% 2-5 items 15% 1 item 30% ELECTRONICS AND ELECTRICAL EQUIPMENT . 39
OPTICAL, PHOTOGRAPHIC AND MEDICAL EQUIPMENT
40 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
China is the key producer of fake optical, photographic and medical equipment. Several East Asian economies – Bangladesh, Cambodia, Indonesia, Malaysia, Pakistan, Thailand and Viet Nam – also appear to be significant producers. Turkey produces counterfeit optical and photographic equipment targeted exclusively at the EU and Saudi Arabia. Large Asian trade hubs – Hong Kong (China) and Singapore – are the main transit points for exporting counterfeit optical, photographic and medical equipment worldwide, while Morocco, Algeria, Albania and Mongolia are identified as transit points for fake sunglasses, optical products and medical equipment en route to the EU. Uruguay and the Dominican Republic appear to be important transit points for counterfeiters located in China and Hong Kong (China) to the US. The lion’s share of shipments of counterfeit sunglasses, photographic apparatus, and medical equipment is sent by mail and express services. OPTICAL, PHOTOGRAPHIC AND MEDICAL EQUIPMENT . 41
The key trade routes for fake optical, photographic and medical equipment
5.2%
the total share of fakes in global trade in optical, photographic and medical equipment
Transportation methods for counterfeit optical, photographic and medical equipment (as a percentage of total seizures) 77% Mail
4% Road
16% Air
Mongolia China
Turkey Morocco Dominican Republic
Undetermined
Transits
Producers
Pakistan
Bangladesh
Singapore
42 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
Size of shipments >10 items 37%
Uruguay
The probability for producing fakes is based on the average GTRIC scores for the analysed economy. For more details on the GTRIC index see the OECD/EUIPO report.
3% Sea
Hong Kong (China) Cambodia Thailand
HIGH INTENSITY of producing or transiting fakes
LOW INTENSITY of producing or transiting fakes
Kuwait
$29.2bn
the global trade value of fake optical, photographic and medical equipment
Some of the most common seizures of optical, photographic and medical equipment Glasses
Microscopes
Contact lenses
Telescopes
Bulbs
6-10 items 10% 2-5 items 24% 1 item 29% OPTICAL, PHOTOGRAPHIC AND MEDICAL EQUIPMENT . 43
China is the main producing economy of fake toys, games and sports equipment.It produces and exports them throughout the world, using a significant number of transit points, such as Hong Kong (China), Singapore and Macau (China). Other producing economies include India and Pakistan. Regionally, Turkey and Morocco are producers shipping to the EU; Mexico is
TOYS, GAMES AND SPORTS EQUIPMENT
44 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
also identified as a potential producer targeting the US. Apart from Hong Kong (China), Singapore and Macau (China), there are several other transit points for trade in fake toys, including Saudi Arabia, Kuwait and Bahrain. They receive the fakes direct from China, India, and Pakistan, and indirectly from Hong Kong (China), and re-export them to the EU, the US, and North and Central Africa. On a regional scale, Morocco, Lebanon, and Armenia also appear as important transit points for the fake toys, games and sports equipment en route from China, Hong Kong (China) and Turkey to Europe. Finally, Uruguay and Paraguay are transit points for products made in China and Hong Kong (China) targeted to the US market. TOYS, GAMES AND SPORTS EQUIPMENT . 45
The key trade routes for fake toys, games and sports equipment
11%
the total share of fakes in global trade in toys, games and sports equipment
Turkey Morocco Saudi Arabia
Mexico HIGH INTENSITY of producing or transiting fakes
Armenia Bahrain United Arab Emirates
Ecuador
India
Macau (China)
Undetermined
Transits
Producers
Uruguay
The probability for producing fakes is based on the average GTRIC scores for the analysed economy. For more details on the GTRIC index see the OECD/EUIPO report.
46 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
30% Sea
16% Air
12% Road
0.5% Rail
Hong Kong (China)
Paraguay
LOW INTENSITY of producing or transiting fakes
42% Mail
China
Singapore
Size of shipments >10 items 41%
$9.7bn
Transportation methods for counterfeit toys, games and sports equipment (as a percentage of total seizures)
the global trade value of fake toys, games and sports equipment
Some of the most common seizures of toys, games and sports equipment Balls
Games consoles
Robots and dolls
Skateboards
Plastic toys
6-10 items 7% 2-5 items 15% 1 item 37% TOYS, GAMES AND SPORTS EQUIPMENT . 47
Further reading THE ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
Trade in Counterfeit and Pirated Goods MAPPING THE ECONOMIC IMPACT
2017 Situation Report on Counterfeiting and Piracy in the European Union A joint project between Europol and the European Union Intellectual Property Office
The OECD is a unique forum where the governments of 35 democracies work together to address the economic, social and environmental challenges of globalisation. The OECD is at the forefront of efforts to understand and to help governments respond to new developments and concerns, such as corporate governance, the information economy and the challenges of an ageing population. The Organisation provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice and work to co-ordinate domestic and international policies.
Managed by the EUIPO, THE EUROPEAN OBSERVATORY ON INFRINGEMENTS OF INTELLECTUAL PROPERTY RIGHTS is a network of experts and specialist stakeholders. The Observatory’s objectives are to: l
Provide evidence-based contributions and data to enable EU policymakers to shape effective IP enforcement policies and to support innovation and creativity;
l
Provide data, tools and databases to support the fight against IP infringement;
l
Provide knowledge and learning programmes for IP and enforcement authorities as well as for businesses and IP practitioners;
l
Develop initiatives to help innovators, creators and businesses (especially SMEs) protect their IP rights;
l
Design campaigns to raise awareness of the value of IP and the negative consequences of IP infringement.
www.oecd.org
June 2017
Mapping the Real Routes of Trade in Fake Goods
48 . MAPPING THE REAL ROUTES OF TRADE IN FAKE GOODS
Trade in Counterfeit and Pirated Goods: Mapping the Economic Impact
2017 Situation Report on Counterfeiting and Piracy in the European Union
The OECD Task Force on Countering Illicit Trade (TF-CIT) convenes governments and a wide range of stakeholders to map and analyse the underlying dynamics of illicit trade. Its evidence-based research and advanced analytics draw attention to the convergence of criminal networks that operate illicit trade, from counterfeits to narcotics, from excise goods to the trafficking of persons and wildlife. The goal of the TFCIT is to foster public policies, international cooperation and public private partnerships that deter and reduce illicit markets. http://oe.cd/tfcit
http://euipo.europa.eu For other reports: http://euipo.europa.eu
http://oe.cd/routes