Illicit Trade
Illicit trade is a worldwide phenomenon and a major challenge for governments, representing nearly 3% of global GDP – USD 2.2 trillion. (World Economic Forum) The consequences of illicit trade negatively impact governments, the local economy, and citizens’ health and safety.
Traceability programs are a government response to this ever-growing threat with the aim to:
- Improving tax revenue collection: Governments lose USD 40.5 billion in revenue from the illicit trade of tobacco products annually. (World Health Organization)
- Detecting, preventing, and reducing illicit trade: Illicit trade activities comprise a wide range of activities, such as smuggling and counterfeiting. Counterfeit spirits and wine drain EUR 1.2 billion in government revenues in Europe. (Tracit)
- Protecting citizens’ health and safety: Illicit pharmaceuticals are estimated to cause one million deaths annually and contribute to severe public health crises. (National Library of Medicine) Counterfeit drugs have become a USD 200-billion-a-year industry. (Reuters)
- Complying with supranational regulations: As part of the Protocol to Eliminate Illicit Trade in Tobacco Products of the WHO Framework Convention on Tobacco Control, member states must implement a tracking and tracing regime to secure the supply chain of tobacco products.
Our approach
Our digital solution empowers governments to enhance and control tax revenue collection while preventing and reducing illicit trade and protecting citizens’ health and safety.
Centralized Management
Governmental Authorities
Governmental Authorities
Reporting
Factory
Consumer
Warehouse
Retailer
Distributor
Distributor
Retailer
Warehouse
Consumer
Factory
A joint global effort
INEXTO believes government authorities, law enforcement, and the private sector can jointly fight against this global problem. Adopting modern technology solutions is one of the crucial tools to combat the modern threat of illicit trade.
INEXTO’s Government Solution is a modular and customizable solution that enables government authorities to control and have complete visibility of domestic production, import, export, and distribution of goods. It covers a wide range of excisable and “sensitive” goods and considers the requirements and specifications of all stakeholders: Ministries of Finance, Health, and Industry; tax authorities; customs; manufacturers; importers; and exporters.
Governmental Solutions by Inexto
Features
- Solution that satisfies government and private sectors using interoperable standards, including GS1, ISO, and 3rd party government information systems.
- Unique identifiers applied on labels/tax stamps or directly marked on the product.
- Performant solutions designed for diverse production environments:
- High-speed manufacturing and global distribution networks – up to 1’000 products/minute
- Manual, semi-automated, and fully automated production lines
- Digital authentication: security feature (smartphone enabled) used on labels/tax stamps and packaging.
Benefits
- Improved tax revenue collection.
- Enhanced regulatory control.
- Cost-savings and optimized resource allocations in tax control operations.
- Data-driven decision-making based on data analytics reports.
- Agile and innovative: Adaptive to evolving regulations, customer requirements, and industry trends.
- Solution applicable to different industries: tobacco, beer, spirits, wine, soft drinks, bottled water, and others.