MORE than half of the total value of counterfeit goods seized around the world are shipped by sea, according to a new report by the Organisations for Economic Cooperation and Development (OECD) and European Union Intellectual Property Office (EUIPO).

Seaborne transport accounts for more than 80 per cent of the volume of merchandise traded between countries, and more than 70 per cent of the total value of trade.

Meanwhile, imports of counterfeit and pirated goods amounted to up to USD 509 billion in 2016, or around 3.3 per cent of global trade.Containerships carried 56 per cent of the total value of seized counterfeits in 2016, found the report.

Smugglers find container ships appealing, given the ease and low risk of stowing not only counterfeit products, but also narcotics, other contrabands and even undocumented migrants.

"Evidence shows that, while criminals continue to use all available modes of transport for illicit trade, seizures from commercial maritime container shipping continue to dominate in terms of volume and value of goods seized," it said.

Illicit trade in counterfeit and pirated goods damages economic growth and can harm individual and collective health and safety, proving to be a growing threat in a globalised and innovation-driven economy. It fuels corruption, undermines sound public governance, the rule of law and can ultimately threaten political stability.

"The COVID-19 pandemic has accelerated illicit trade, alarming law enforcement in many parts of the world," says the report.

A review of the data showed that the highest number of counterfeit shipments originated overwhelmingly in China, 79 per cent. Other Southeast Asian economies, India, Malaysia, Thailand and Singapore, followed suite. Mexico, Turkey and the UAE are also among the top provenance economies for counterfeit and pirated goods traded worldwide.

Between 2014 and 2016, 82 per cent of the seized value of counterfeit perfumes and cosmetics by customs authorities worldwide, 81 per cent of fake footwear and 73 per cent of fake foodstuff and toys and games concerned sea shipments.

"Additional analysis showed that over half of containers transported in 2016 by ships from economies known to be major sources of counterfeits entered the European Union through Germany, the Netherlands and the United Kingdom. There are also some EU countries, such as Bulgaria, Croatia, Greece and Romania, with relatively low volumes of containers trade in general, but with a high level of imports from counterfeiting-intense economies," it says.

To combat illicit trade, a number of risk-assessment and targeting methods have been adapted for containerised shipping, in particular to enforce against illicit trade in narcotics and hazardous and prohibited goods. But the analysis reveals that the illicit trade in counterfeits has not been a high priority for enforcement, as shipments of counterfeits are commonly perceived as "commercial trade infractions" rather than criminal activity.Consequently, existing enforcement efforts may not be adequately tailored to respond to this risk, according to the report.

The report calls for tailored and flexible governance solutions to strengthen risk-assessment and targeting methods against counterfeits.