LEADERS from global shipping firms, freight forwarders, brand owners - whose products are counterfeited - and industry organisations representing both industries signed a joint "Declaration of Intent to Prevent the Maritime Transport of Counterfeit Goods" today in Brussels. It marks the first time the global shipping industry and brand owners have made a public commitment to work together to stop the transport of counterfeit goods on shipping vessels.
Initial signatories include the leading global shipping firms and freight forwarders and ten major multinational brand manufacturers, along with the International Federation of Freight Forwarders Associations (FIATA), and the International Chamber of Commerce's (ICC) Business Action to Stop Counterfeiting and Piracy (BASCAP) and Commercial Crime Service (CCS). More transporters, brand owners and their industry associations are expected to join the voluntary initiative as awareness grows.
According to the United Nations (UN) Office on Drugs and Crime, about 90% of all international trade is moved around the world in more than 500 million containers on 89,000 maritime vessels. While this represents approximately 90% of all international trade, UNODC says that less than 2% of these containers are inspected to verify their contents. This results in enormous opportunities for criminal networks to abuse this critical supply chain channel to transport huge volumes of counterfeit products affecting virtually every product sector. According to a recent OECD/EUIPO report, US$461 billion in counterfeit goods moved through international trade in 2013, with almost 10% being shipped on maritime vessels.
Maersk Line and CMA CGM Group, two of the largest global transport companies with approximately half of all global shipping, and Kuehne and Nagel and Expeditors, two of the leading freight forwarding and logistics companies with total revenues of more than US$ 27 billion, were the first in their industries to sign the Declaration. A total 10 members of BASCAP were the first brand owners to sign the Declaration representing hundreds of global brands with combined sales of more than US$350 billion.
The non-binding Declaration acknowledges the "destructive impact" of counterfeits on international trade. It calls on the maritime transport industry to address it "through continuous proactive measures, and corporate social responsibility principles." The Declaration includes a zero tolerance policy on counterfeiting, strict supply chain controls and other due diligence checks to stop business cooperation with those suspected of dealing in the counterfeit trade.
This commitment paves the way for new voluntary collaboration programmes between intermediaries and brand owners to stop abuse of the global supply chain by counterfeiters.
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