Global Counterfeit Supply Network

According to the Organization for Economic Co-operation for Development (OECD) and European Union Intellectual Property Office (EUIPO) the estimated value of Counterfeit Products at global level is worth 4.77 trillion, about 5-7 % of total value of goods traded every year. Based on this research two important patterns were noticed;
  • Most developed countries are primary targets for selling counterfeit products.
  • China is the largest producer of fake goods, while Hong Kong, Singapore and United Arab Emirates are the most important points of distribution for counterfeit goods at the global level.

In this report we examined and tabulated the routes for 10 types of counterfeit goods, for a value of $284 billion, over half of the estimated value of commerce in smuggling. Which is at least as Efficient and Intricate as the world of legitimate transport.

In distribution of counterfeits goods we found various nodes or points were the goods were dispatched to different countries by which we deduced that the transit nodes are used essentially for three tasks;

  1. Facilitating the falsification of documents in order to disguise the true origins of the products.
  2. Establishing points of distribution for counterfeit products.
  3. Finally relabeling or re-packaging falsified goods.

Previous year, in E.U. countries, there were 57,000 seizures from postal traffic (70.5% of the total) versus 2,400 (3%) from maritime transport, but if 893,000 objects were seized in the postal sector (2.2%), 30.1 million were seized from maritime traffic (74%), for a value of €57.7 million in the postal sector (9%) versus €325.4 million in maritime traffic (50.7%). The Tabulation of global counterfeit transport routes are given below;

 

Product

Value

Most Counterfeited Products

Counterfeiting Country

Global Routes Opted

Games, Toys & Sports Equipment.

$88.3 billion, or 0.5% of global trade.

Tricycles, Scooters, Toy cars with pedals and other toys with wheels, Dolls, Models, Puzzles, Video games, Table football, Casino tables, Carnival and other festival terms, Equipment for gymnastics, Athletics, other sports (including table tennis)and Outdoor activities like Fishing rods and similar equipment, Balls, Balloons, Bicycles, Boxing gloves, Playing cards, Action figures, and Robots.

China (87% of the total value of goods seized), Hong Kong (9%), and the Emirates (1.5%).

China to the United States (24%), Saudi Arabia (15%) and Spain (8%). Chinese products reach Europe by all modalities of transportation (via Hong Kong for postal and aerial transport), while Indian and Pakistani products travel by post or by sea, Turkish products by road.

Optical, Photographic And Medical Equipment.

$561 billion, 3% of global trade.

Cameras, Photographic Image Projectors, Medical, Surgical, Dental and Veterinary Instruments.

China (54% of the total value of seized goods), Uruguay (17%), and Malaysia (14%).

Chinese products reach Europe by post, air, and sea, while itis necessary to pass through Tur-key or Kuwait for the road option, including for goods that have al-ready passed through Hong Kong. By sea or air, Chinese counterfeit goods (or hose re-shipped from Hong Kong) reach the E.U. via Morocco and Algeria. Products reach Europe by post and air from Bangladesh, Cambodia, Malaysia, Pakistan, Thai-land and Vietnam (with Singapore as the most important logistical node, for China, too). Turkish products reach Europe by air, post, and road. For goods of unclear origin, Albania is a point of transfer on the way to Europe by road and by sea, from Mongolia, it is by post

Electronic and Electrical Products.

$88.6 billion, 5.3% of global trade.

Memory cards, Flash drives, Headphones, Earbuds, Cellular phones, Batteries, Chargers, Microphones, Speakers, and Integrated electrical circuits.

China, Hong Kong, and the Emirates.

Chinese products reach the E.U. by post, sea and air. Thailand and India are also producer countries, their products reaching Europe by post and air. The distribution point for all of these countries, except or India, is Hong Kong. Limited to the postal modality of transport, the goods reach Europe through Singapore by post. The Emirates and Turkey are points of distribution for products of unknown governance by air and postal modalities of transportation, Egypt is limited to air transport

Jewelry

$40.9 billion

*——————————-*

China (53% of the total value of goods seized), Hong Kong (42%), and the Emirates (2%), with Morocco in third place instead of the U.A.E. in the ranking of the leading exporters of fake jewelry to Europe.

Chinese, Thai, Indonesian, Malaysian and Vietnamese products reach Europe via Hong Kong by post, air and sea. China also has Singapore and Saudi Arabia as points of distribution to Europe, limited to the postal modality. Armenia also has its share of production, which reaches Europe by post. The United Arab Emirates are a distribution point for products of unknown origin on their way to Europe by postal and aerial transport.

Shoes

$13 billion, 10.5% of global trade.

*——————————-*

China (90% of the value of goods seized), Hong Kong (5%) and Turkey (2%).

Chinese counterfeit products reach Europe by post and by sea, like Filipino, Thai, Malaysian, Vietnamese and Indian products. Hong Kong is the transit point for all those countries except for India. Chinese goods also depart from Hong Kong by airmail. Senegal is also a transit point for Chinese products. Turkish products reach Europe by all modalities of transport: post, road, air and ship.

Apparel And Textile

$252 billion, or 1.5% of global trade.

Men’s and Women’s Shirts, Coats and Suits.

China (59% of the total value of seized goods), Turkey (9%) and Hong Kong (8%).

China to Spain (19% of the overall value of good seized), the Netherlands (8%),and the Czech Republic (7%). The route to Italy comes in eighth (3%), with traffic generally by post. counterfeit apparel and textiles from Vietnam, Thailand and India also reach Europe by air and post. For Chinese, Thai and Vietnamese products, the logistical hub is Hong Kong, from which goods are redirected to Europe. Singapore also plays the same role, and its traffickers bring in more profits from their logistical activity (postal) than from production. The United Arab Emirates are another point of distribution for goods of unknown provenance on their way to Europe by post, air and sea.

Leather Goods And Handbags

$74.1 billion, or 0.5% of global trade.

Leather apparel, but also Shorts, Suits, Boxes, Costume Jeweler, Travel bags that are partially or entirely leather, and up Holsters and Textile materials.

China (70% of the total value of goods seized), Hong Kong (20%), and the Emirates (3%), which are also the leading exporters to Europe.

Chinese products reach Europe by post; Cambodian, Filipino, Thai, Indonesian and Malaysian products travel by post, but also by air and sea; Turkish products travel by post, road and air. The points of distribution for Asian products on their way to Europe are Hong Kong (which can redirect goods from China and Thailand, as well as those produced in the former British colony itself, via Kuwait and by post), while Singapore trades in Chinese products which are sent to Europe by post. 51% of counterfeit leather goods and handbags travel by post, 39% of the shipments consist of a single object.

Perfumes And Cosmetics.

$111 billion, 1% of global trade.

*——————————-*

China (58% of the overall value of good seized), Turkey (20%), and the Emirates (8%).

These products reach Europe by sea and by post; the nodes on the way to the E.U. are Hong Kong for Chinese products, Kuwait (which also serves the Emirates and Thai traffickers), and Albania. The latter country, in particular, receives goods not only from the Emirates and China, but also from Turkey and also from China via Hong Kong, redirecting them to Europe by road. The Emirates are also a hub for counterfeit perfume and cosmetics on their way to Europe, mainly by sea and air.

Pharmaceuticals Products

$486 billion, 2.4% of global trade.

Medication, both unpacked and Ready for retail sale, Thread and Other material for sutures, First aid kits, and Paste for dental fillings

India (55% of the total value of seizures), China (32%) and Hong Kong (3%).

Indian counterfeit products reach Europe by post, while the distribution points on the way to the E.U. are Iran (by post) and Hong Kong (by air and post). In effect, 86% of counterfeit medicine travels by post, and 85% of the shipments consist of more than 10 items.

Food

$12 billion, 1.2% of global trade.

Cookies, Sweets and Ice cream.

China, the United Arab Emirates, and Turkey.

Chinese and Turkish counterfeit products reach Europe primarily by road.

 

 

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