Together we can stop the trade of illicit and counterfeit goods

By Niko Allie

Everyone loves a great deal, but sometimes a deal is too good to be true.  When you are offered goods well below the normal price, there is a good chance that you are unwittingly partaking in the purchase of illicit or counterfeit goods.

Replicas of original or branded products are considered counterfeit goods and their trade is illegal. Counterfeit products are often poorly formulated and pose serious risks to people’s health, safety and our economy.

When you purchase such goods, you are fueling an illegal industry that operates without rules or regard for the law. The sale of counterfeit and illicit goods takes a heavy toll on small businesses and deprives hard working men and women from making an honest living. It erodes the tax base and results in less funding for pressing needs such as community safety, health and education. It slowly strangles communities and at times even results in catastrophic injuries or deaths.  

Those who manufacture or import illicit and counterfeit goods do not follow agreed upon labour practices, and routinely subject their employees to inhumane working conditions. These goods go beyond clothing, textiles or branded items and often include consumable items.  

Recent intelligence driven raids by the National Counterfeit Goods Unit led to the seizure of counterfeit sanitary pads, deodorants and other consumables worth over R4.8 million at a self-storage facility in Mayfair, Johannesburg. On the same day, counterfeit sanitary pads, hair extensions, toothbrushes and other consumables worth over R9.3 million were seized at a small holding in Bredell, Kempton Park, Gauteng.

Raids like this help to keep dangerous goods off the street and are part of our comprehensive approach to bring an end to dangerous illicit and counterfeit goods. Multi-disciplinary enforcement teams routinely conduct targeted inspections and investigations, and there is a dedicated and focused capacity within the South African Revenue Service (SARS) to deal specifically with criminal and illicit economy activities.  SARS also has a strict policy to regulate all imports. Foreign-going vessels or aircraft that enter and pass through our territorial waters or airspace are subject to customs control until they leave the territorial water or airspace of the republic.

We also continue to target well-known illicit activities such as counterfeit goods, tobacco smuggling and illegal imports. Evidence shows that illicit trade costs the country’s economy billions of rands in lost revenue as goods illegally brought into the country erodes our productive capacity which in turn aggravates already high levels of poverty and inequality. The trade in counterfeit goods such as food, drink, medicine and cigarettes is extremely worrying and all of these have serious implications for the health and safety of consumers.

Bringing an end to the dangerous trade requires the help of everyone, and we all have a role to play.  If we all choose to buy original and genuine products, we support local industries, stimulate job creation and ultimately fuel economic growth. Similarly, if local businesses buy locally manufactured goods and products, we can fight counterfeits and build our local industries.

As consumers, we are often the end point of illicit trade, and our actions can bring an end to the trade of illicit and counterfeit goods. We call on everyone to do the right thing and not to support counterfeit goods.  It is in your power to refuse to knowingly sell or buy counterfeit goods.

You can become part of the change by blowing the whistle on those involved in counterfeit goods. Report counterfeit activities by dialling the National Anti-Corruption Hotline on 0800 701 701. If we all obey the law and encourage others to support legitimate businesses, we can bring an end to illicit trade and ensure that local businesses thrive.