In it's 2020 update to its report "Controlling the Zone: Balancing Facilitation and Control to Combat Illicit Trade in Free Trade Zones", the International Chamber of Commerce notes the unintended role free trade zones (FTZs) have had in contributing to counterfeiting and piracy The updated report notes increasing work by governments and authorities to strengthen enforcement, but notes there is still more to be done. It is important to know that duty- and tax-free sales are not free zone sales. Duty free sales take place in a highly regulated retail environment e.g. airports, ports, ferries, cruise ships and land border shops, and their operations are governed by national customs authorities. Our supply chain is one of the most secure in the world with processes and technologies in place to provide for verification of registration, compliance, certification, review and audit.

Recent work by the OECD has shown that Free Trade Zones can offer advantages to businesses through lighter regulations, but also generate opportunities for illicit trade. Read more about the OECD's “Recommendation of the Council on Countering Illicit Trade: Enhancing Transparency in Free Trade Zones" here. It is important to know that duty- and tax-free sales are not free zone sales. Duty free sales take place in a highly regulated retail environment e.g. airports, ports, ferries, cruise ships and land border shops, and their operations are governed by national customs authorities. Our supply chain is one of the most secure in the world with processes and technologies in place to provide for verification of registration, compliance, certification, review and audit.

A 2016 report commissioned by the Duty Free World Council on the impact of duty free and travel retail in Europe. The report finds that in 2016 the duty free and travel retail industry was contributing around 6.5bn EUR to the European economy, and supporting over 100,000 direct jobs.

A report commissioned by the UK Travel Retail Forum assessing the potential economic impact of a reduction in the inbound tobacco allowance in Jersey. The report found the loss in corresponding non-aeronautical revenue and associated tourism spend could impact the Jersey economy by millions every year.

A study commissioned by the UK Travel Retail Forum to make an assessment of the consequences of the UK Government withdrawing VAT-free sales in the UK following Brexit. The initial assessment found that the removal of VAT-free sales could result in a loss of over £2million GBP in GDP, and affect thousands of jobs.

A 2018 report by the Duty Free World Council and Tax Free World Association examining the economic impact of duty free and travel retail for the Americas. The report finds In 2016, US$12.9 billion was spent on duty free and travel retail in the Americas. with nearly US$1.9 billion in the U.S. and Canada and US$4.8 billion in Latin America and the Caribbean, most of which was generated within airport terminals.

A 201 report by the Duty Free World Council and Asia Pacific Travel Retail Association on the economic impact of duty free and travel retail in the Asia Pacific region. The report found that in 2017 an estimated US$36.2 billion was spent on duty free and travel retail in the Asia Pacific region. Airports and airlines accounted for nearly US$21.2 billion in duty free and travel retail sales, and duty free and travel retail spending in APAC accounted for an estimated 140,900 direct jobs and US$7.5 billion in direct GDP.

A 1996 report examining the potential consequences of the abolition of duty free sales in Europe for intra-EU travellers.

A 1998 study examining the potential impact of the abolition of duty free in the EU on the Netherlands.

Duty free and travel retail (often referred to collectively as DFTR) are unique retailing channels, not least because they operate exclusively in an international trading environment.

Illicit trade is broadly defined as any exchange of goods or services that a national or international law maker deems to be illegal. The term encompasses counterfeiting, piracy and intellectual property theft, and plagues industries across the world. 

Duty free trade boasts a secure and transparent supply chain, which is supported by an industry fully committed to ensuring the authenticity, traceability and genuineness of its products.

Statistics released by Airports Council International (ACI World), culled from data from airports in all parts of the world in 2016, offer an intriguing insight into the relative values of different segments of non-aeronautical revenue generation.

ACI’s Policy Brief – Path to the airport industry recovery – Restoring a sustainable economic equilibrium draws attention to the crucial role duty free and travel retail plays in the success and growth of airports around the world, with up to 44% of airport revenues coming from non-aeronautical sources, and retail concessions contributing 30% of this figure.

This study, commissioned by leading players from the aviation and tourism sectors and published at the Annual Conference & Exhibition of the Airport Operators Association (AOA), the trade body for UK airports, on 10 November, shows that all three elements of the sector made a significant contribution to the UK economy.