Many alcoholic, as well as soft drink products enjoy high levels of demand and command premium prices. This situation, coupled with varying duty levels across the globe create opportunities for the counterfeiting, forgery, diversion and smuggling of large quantities of poor-quality and often dangerous substitutes over large areas, threatening public health, depriving governments and legitimate operators of millions of dollars of revenue, and eroding brand equity.
Both governments and manufacturers have started to impose their own anti-counterfeiting, anti-diversion and anti-smuggling control mechanisms for wine, beer and spirits authentication and supply chain security. These mechanisms include securealcoholexcise tax stamps and secure banderoles, product authentication features and secure alcohol track and trace technology.
To be effective, they must comply with certain requirements:
- They must offer solutions against all forms of alcohol and soft drink illicit trade
- They must not interfere with manufacturing and trade processes
- They must be flexible to apply, and at an acceptable cost
- They must allow for international collaboration in tackling alcohol illicit trade.
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