Code Orange: BSI Supply Chain Solutions Warns of Continued Smuggling of Counterfeit Items into the Philippines

Press release - RESTON, VA - February 19, 2014 

BSI has confirmed several recent seizures by Philippine authorities of various smuggled counterfeit goods shipped into the country since February 2014.  While the Philippine government has made efforts to curb contraband smuggling into the country’s ports, specifically the Port of Manila, widespread corruption mixed with weak regulatory laws and high tariffs produce an ideal climate for organized groups to introduce items into the country. For instance, on February 7, Philippine police raided two large warehouses in Pasay and Paranaque that resulted in the seizure of roughly $13.75 million of counterfeit toiletries, apparel, shoes, and perfume - likely from China. 

According to reports, the Philippine economy lost over $3 billion to smuggled items in 2011 (the most recent information released). A vast majority of the smuggled items, particularly counterfeit goods, imported into the country originate in China, with household products and apparel among the two most common items. While imitated items are manufactured in several provinces in China, Guangdong and Zhejiang tend to produce higher amounts of apparel and consumer goods than other regions in the country. BSI has noted that the production of high-value electronics, both finished products and semiconductors, are also frequently manufactured in and exported out of Guangdong.

Dan Purtell, BSI’s Senior Vice President for Supply Chain Solutions states, “It is a business imperative to take a holistic, comprehensive approach to supply chain risk management to identify the highest risk areas for counterfeiting and its residual impact on brand and reputation. Then, and only then, can the resiliency and integrity of a supply chain be well understood.”  

About BSI Supply Chain Solutions:

BSI’s Supply Chain Solutions group helps organizations and governments mitigate business risk at every point of the value chain, whether brand protection, transit of goods, business continuity, or security compliance. We focus on supporting the overall integrity of our clients’ supply chain, providing timely world-wide information, leading edge tools, and best practices from over 100 years of experience. BSI unites professional advisory services with unique technology and automation, on-site supplier audits, and proprietary risk data and analytics to help companies effectively identify, assess, and mitigate risks that threaten the global supply chain and enterprise as a whole. No matter the global supply chain concern – social responsibility, intellectual property, cargo disruption, political instability, counterfeit goods, or compliance – BSI has developed a proven portfolio that can address today’s emerging supplier and supply chain risks. BSI Supply Chain Solutions is the only firm that infuses rich intelligence into a company’s supply chain risk management program.


Shereen Abuzobaa, Commercial Director
(703) 437-9000