FOCUS 19 to be 5% of worldwide GDP. I


Sales are declining or fl at in many developed markets, and a lot of consumer products have hit an affordability ceiling; particularly those that are heavily taxed, such as alcohol and tobacco. In addition criminals have become smarter and much more entrepreneurial about how they access their consumers.


Businesses have always had the illicit problem high on their agenda but they have often felt that the problem sits outside of their control. One thing we’re fi nding is that companies are waking up to the fact that their biggest competitors are illegal peddlers of their own goods.


Monitor and evaluate


Illicit tobacco and alcohol products can be divided into counterfeit and contraband. Counterfeit is defi ned as products that are illegally manufactured and sold by a party other than its original trade-mark owner. Contraband is defi ned as genuine product which is bought in a lower priced country and imported without paying the correct excise duty.


In other sectors ‘grey’ market imports are often on the cusp of legality.


llicit trade in consumer and industrial products has never been more prolifi c and has grown exponentially across the world in recent years. The scale of the problem is in fact estimated


BUSINESSES HAVE ALWAYS HAD THE ILLICIT PROBLEM HIGH ON THEIR AGENDA BUT THEY HAVE OFTEN FELT THAT THE PROBLEM SITS OUTSIDE OF THEIR CONTROL.


© 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member fi rm of the KPMG network of independent member fi rms affi liated with KPMG International Cooperative, a Swiss entity. All rights reserved.


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ILLICIT TRADE

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