International Anti-Corruption Commitments

Title of the document

Recommendation of the Council on Countering Illicit Trade: Enhancing Transparency in Free Trade Zones

(https://www.oecd.org/governanc...)

Issuing body

Organisation for Economic Co-operation and Development

Brief description

The Recommendation promotes transparency in order to deter the abuse of free trade zones as conduits for illicit trade.

Relevant excerpts

1.Ensure that the legal framework for free trade zone (FTZ), established in their territory or that are otherwise under their administrative control,

a)Provides for the right of competent authorities to require relevant data, documents, samples and other information related to the production and movement of goods, and to carry out, in accordance with domestic law, ex officio checks at any time on goods stored, manufactured or packaged and services provided or activities conducted in FTZ.

b)Allows for competent authorities to take appropriate actions and measures in accordance with their domestic law.

2.Ensure competent authorities have access to aggregated statistical data on goods entering and leaving FTZ on the basis of their tariff classification, and information that identifies the owner(s) of goods.

3.Cooperate internationally in the exchange of law enforcement information, and consult with competent authorities and affected industries in investigations and other legal or administrative proceedings concerning specific cases of misuse of FTZ related to illicit trade.

4.Enhance domestic inter-agency co-operation, including obligations to report suspicions of illegal behaviour to the competent public authorities, information sharing between agencies; and other co-operation mechanisms such as joint investigations and joint intelligence centres.

5.Promote awareness amongst competent authorities and private sector stakeholders (e.g. major intermediaries including shipping agents, freight forwarders, customs brokers and logistics companies) to understand the roles and responsibilities of operating in an FTZ, as well as risks related to FTZ operations.