This report examines governance frameworks to counter illicit trade. It looks at the
adequacy and effectiveness of sanctions and penalties applicable, the steps parties
engaged in illicit trade take to lower the risk of detection - for example through
small shipments - and the use of free trade zones as hubs for managing trade in illicit
products. It also identifies gaps in enforcement that may need to be addressed. The
report provides an overview of selected enforcement issues in BRICS economies (Brazil,
China, India, the Russian Federation and South Africa).
Poor implementation of policies against illicit trade, and a lack of co-ordination
across borders, is allowing criminal networks to evade detection and enforcement.
The rapid growth in the use of postal and courier services, as well as online sales,
is leading to more illicit trade in small shipments, which increases the cost of enforcement.
Free Trade Zones – separate areas inside a single country that are subject to light
or no regulation, duties and taxes – can be safe havens for criminal networks looking
to move illicit goods.