Definitions
| Term | Definition |
| Tax avoidance | Legal activities to pay less tax or no taxes |
| Tax evasion | Illegal activities to pay less tax or no taxes |
| Smuggling | The illegal trading of products across borders |
| Illicit trade | Any practice or conduct prohibited by law and which relates to production, shipment, receipt, possession, distribution, sale or purchase including any practice or conduct intended to facilitate such activity6 |
| Illicit manufacturing | The production of tobacco products contrary to law |
| Counterfeit production | Production of manufactured products which bear a trademark without the consent of the owner of the trademark |
| Free zone | A part of the territory of a Contracting Party where any goods introduced are generally regarded, insofar as import duties and taxes are concerned, as being outside the Customs territory.42 |