Illegal Trafficking of Used Clothing Faces Crackdown in Peru

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Illegal Trafficking of Used Clothing Faces Crackdown in Peru

By

Arthur Zaczkiewicz

Arthur Zaczkiewicz

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In South America, the supply chain of used clothing is big business. It is also illegal and follows the same routes as cocaine.

In response, the Observatory for Combating Illicit Trade (OLCI) of the National Society of Industries (SNI) in Peru released a study that called for a government crackdown that includes strengthening the border and dismantling the networks that finance, transport and distribute illegal goods. And they’ll be using technology to do it.

The study, which was prepared by the Institute of Criminology, also called for the government to “prioritize the fight against criminal organizations linked to the illegal trafficking of used clothing.”

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The study found that there was $143.3 million worth of used clothing trafficked during 2023. This is the equivalent to an annual average of 136,095 tons between 2021 and 2023. The investigation found that the illegal supply chain doesn’t end when the items enter Peru . Inside the country, the used clothing is stored, sorted and then distributed through a network of wholesalers and retailers using digital platforms and social media as well as courier services to supply buyers in different regions.

Ricardo Gutiérrez Rojas, president of the SNI’s Commission for Combating Illicit Trade , said the study demonstrates “that we are not facing an isolated informal trade, but rather an international chain linked to illicit trade, document fraud, corruption, environmental pollution and dynamics associated with organized crime.” Gutiérrez Rojas said public policies must be based on evidence “to understand the magnitude and the critical points that must be addressed.”

Felipe James Callao, president of the SNI, said studies have shown that illicit trade is increasingly affecting all industrial activity “and almost half of the country’s industrial companies are affected by some form of illicit trade, with smuggling being the main threat.”

To succeed, there needs to be collaboration between the state and private sector.

The study found that the illicit activity is multinational and that Chile is the main entry point for used clothing into South America . The report’s authors said that a significant amount of the illegal shipments enter Peru illegally via the borders with Chile and Bolivia. The methods of transportation vary and include cargo trucks, buses, private vehicles and unauthorized border crossings, “so-called ‘ant trafficking,’ and even lake routes through Lake Titicaca, sharing corridors used by other illicit economies,” the report noted.

The study found a supply chain made up of 11 links, 32 activities and 88 tasks, said Nicolás Zevallos, director of public affairs at the Institute of Criminology, in a statement, adding that the investigation found 24 points where the apparel ends up as environmental waste.

Zevallos said a key finding of the investigation is that in Peru there are no isolated routes for each type of crime. “There isn’t one route exclusively for used clothing, another for illegal gold and another for drug trafficking. They all share corridors and logistics operators.”

The investigators found that same transport that transports used clothing across the southern border “can also bring in illegal mercury, weapons or be used for human trafficking or cocaine,” Zevallos said, adding that logistics operators “diversify their criminal activities in a complementary way.”

In response, the OLCI offered a proposal that combines legal reforms and institutional strengthening as well as operational actions. The aim is to confront this illegal economy while protecting industry and also regaining control of border trade. The latter is aligned with Keiko Fujimori’s, president of the republic, goal of reinforcing border surveillance with artificial intelligence, drones and facial recognition.

“Among the main actions is the strengthening of the customs’ operational capacity through modern risk management systems supported by digital tools and data intelligence,” the OLCI said in the statement.

OLCI suggested that the actions of the national police and the public prosecutor’s office as well as the judiciary “should focus on dismantling the networks that finance, transport and distribute illegal goods, instead of directing the greatest efforts against small-scale merchants.”

The role of local governments also needs to be bolstered so they can they can permanently monitor establishments where the used clothing is sold and also close the sites down.

Gutiérrez Rojas said the study presents clear conclusions: “the fight against illicit trade and the protection of the environment are one and the same agenda.” And since the supply chain crosses multiple countries and jurisdictions, he said, “International cooperation must be a pillar to face this problem.”

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