This joint OECD & EUIPO study examines the potential for the misuse of small parcels for trade in counterfeit and pirated goods. It presents the legal and economic contexts of the operation of express and postal services. For more information see oe.cd/fakes-small-parcels

1. Misuse of Small Parcels for
Trade in Counterfeit Goods
Trade in fakes in small parcels:
facts and trends

2. What do we know?
OECD – EUIPO studies: Evidence for policymaking
Set of studies: robust, factual, neutral
Results: photographs of trade in counterfeit goods

3. Value of trade in counterfeits in 2013: $461bn
Complex trade routes – misuse of modern
logistical solutions
63% of total number of seizures: small parcels
What do we know?

4. What do we know?
Other (e.g.
pedestrian, rail)
0% Road
8%
Sea
8%
Air
21%
Mail
63%
In terms of number of seizures
small parcels dominate global trade of counterfeit and pirated goods…

5. What do we know?
… and the size of shipments of fakes by small parcels is very small
1 item
53%
2- 10 items
26%
>10 items
21%

6. Yes
Difficult and costly enforcement
- Lack of information
- Lack of resources
- Insufficient co-operation
Is this a problem?

7. But markets for small parcels are booming.
Domestic still dominates.
Two digit growth rates in some countries
Shipments are getting smaller and lighter.
Context needed!
What do we know?

8. Customs seizures (WCO, TAXUD, CBP)
UPU data (postal)
Eurostat data on trade in small parcels
Data sources

9. Pictures
4
6
8
10
12
14
16
0 2 4 6 8 10 12 14 16 18 20
Number of parcels,
international service -
dispatch (in log)
Value of global customs seizures by mail (in log)

10. Pictures
Industry - specific
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Toys and games (95)
Clothing and textile fabrics (60-61)
Perfumery and cosmetics (33)
Jewellery (71)
Leather articles and handbags (42)
Watches (91)
Electronics and electrical equipment (85)
Optical, photographic and medical equipment (90)
Footwear (64)
Mail Air Rail Road, vehicles Sea

11. Pictures
perfumes and cosmetics
Air
6%
Mail
51%
Road,
vehicles
28%
Sea
15%
1 item
54%
2-5 items
13%
6-10 items
8%
>10 items
25%

12. Pictures
perfumes and cosmetics
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
Jordan
Russia
Thailand
Malaysia
Bulgaria
Singapore
Ukraine
Turkey
Hong Kong (China)
China (People's Republic of)
Share of customs seizures by mail Share of seized value by mail

13. Pictures
perfumes and cosmetics

14. Pictures
Toys and games
Air
16%
Mail
42%
Pedestrian
0%
Rail
0% Road
12% Sea
30%
1 item
59%
2-5 items
18%
6-10 items
4%
10 items
19%

15. Pictures
Toys and games
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
Tunisia
Korea
Switzerland
United States
Philippines
Pakistan
Thailand
Singapore
Hong Kong (China)
China (People's Republic of)
Share of customs seizures by mail Share of seized value by mail

16. Pictures
Toys and games

17. Conclusions
Small parcels are misused in most sectors – effective way of smuggling
Regional patterns– some economies “specialize” in illicit trade in fakes
via small parcels :
• China
• Hong Kong (China)
• Singapore,
• Thailand
• India
• Turkey
HK and Singapore – transit hubs

18. Thank you