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

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 document explores the role Arrivals Duty and Tax Free can play in providing new sources of employment and commercial revenue to the European airports industry, as recommended by the Aviation Round Table Report on the Recovery of European Aviation1, a cross industry strategic blueprint for the sustainable recovery of European aviation.