Table 1


Tax avoidanceLegal activities to pay less tax or no taxes
Tax evasionIllegal activities to pay less tax or no taxes
SmugglingThe illegal trading of products across borders
Illicit tradeAny 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 manufacturingThe production of tobacco products contrary to law
Counterfeit productionProduction of manufactured products which bear a trademark without the consent of the owner of the trademark
Free zoneA 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