The end of a Chinese mirage in Ajman?

Since the autumn of 2011, efforts by the FH to stamp out counterfeiting in the United Arab Emirates have focused on sellers and importers in the mirate of Dubai. Attracting the great majority of tourists visiting the country, it is here that most of the traffic in fake Swiss watches took place. The past tense is used because recent events have somewhat altered the dynamics of a situation which most people imagined would remain stable.

In the space of three years, thanks to its agents and the efficiency of the Dubai police, no fewer than 300,000 fake Swiss watches have been seized in this emirate as a result of action taken by the FH. Two observations explain the size of the problem in this city-state. Firstly, a ceaseless flow of tourists coming from all over the world to admire the colossal towers in the desert, go shopping, or stretch out on the beaches. There can be no doubt that the wealth flaunted by the few engenders in holidaymakers of more modest means a desire to show themselves off in the best possible light in this world of appearances. The temptation is great therefore to surrender to the lure of counterfeiters and their touts in souks and markets, who replace the call to prayer with the whispered names of prestigious brands uttered in accents typical of southern Asia.

The second avenue of reflection is the following: in recent years Dubai has become one of the main nerve centres for the flow of merchandise, mainly from Asia en route to the Middle and Near East, Africa, Europe and the Americas. Local political willingness to offer huge free zones subject to scant inspection is certainly a major contributing factor. In addition, trade on the territory is booming and highly competitive. This situation provides a fertile breeding ground for all sorts of imports and commerce. Very quickly, Dubai has also become an exporter of goods to countries in the region. For example, according to some sources, goods - counterfeit or original - that are sometimes frowned upon by the authorities of neighbouring countries such as Iran or Saudi Arabia, often find their way onto trucks, or into wooden boats sailing from Dubai’s ports.

To all appearances pressure exerted by the aforementioned seizures is beginning to have an effect and according to some traffickers, it is now easier and safer to secure supplies via the neighbouring emirate of Ajman. This information obtained by our agents, together with the relatively recent existence of a large shopping mall devoted mainly to products of Chinese origin - the China Mart now open in the emirate – awakened the interest of our investigators.

After taking stock of the situation and establishing initial contact with the authorities of Ajman through its agents, the FH sent two of its staff to take part in raids targeting stalls at the China Mart. This shopping mall had not before been searched by the authorities. A fact underlined by the insouciance with which Chinese traders lined up fake products in their shops, veritable Aladdin’s caves offering mountains of fake products for sale!

A «first» such as this required police support at the highest level, which is why, the day before the raid, FH agents organised a meeting with the police chief in Ajman, a brigadier general who assured his visitors that they could count on the full support of his men.

And the support was real. The next day, four shops were greatly surprised to receive a visit from police officers accompanied by FH representatives, staff and agents. It took the four intervention teams more than four hours to carry out the raids and sift through the merchandise, since only counterfeit versions of brands for which power of attorney had been obtained were able to be confiscated. Presenting documents half in Arabic and half in Chinese bearing multiple signatures and stamps, two Chinese shopkeepers tried to explain to officers that they were happy for the police to confiscate fake watches, but that for some very well known brands they had written permission from the authorities and could therefore legally trade in the goods. Despite protestations in several languages, more than 18,000 fake Swiss watches were packed away and removed on the day of the raid.

To judge by the haste with which Chinese traders not covered by search warrants emptied their shops of fake bags and perfumes while the operation was in progress, and by the fact that most shops in the China Mart closed their doors at the end of hostilities, we can safely assume that there will be a «before and after» effect in the mood which holds sway in this little corner of China on the edge of the Rub al-Khali desert.

March 05, 2015