Cigarettes, alcohol, clothing and textiles accounted for the largest proportion of the fake goods trade, according to the SA Revenue Service (Sars). Last week the US's Food and Drug Administration recalled toothpaste sold in discount stores in four states after it was found to be tainted with a poisonous chemical.

The toothpaste, labelled Colgate, had Made in South Africa printed on the boxes containing the tubes. However, in a media statement, Colgate-Palmolive, the manufacturer of Colgate toothpaste, said the product, which was recalled, was a "counterfeit toothpaste falsely packaged". It added that its own brand of toothpaste did not contain the chemical found in the fake toothpaste.

The company said it did not import toothpaste into the US from South Africa. Responding to questions about the counterfeit toothpaste, Sars spokesperson Adrian Lackay said that in South Africa the "biggest contributors to volumes" of fake goods were cigarettes, alcohol, clothing and textiles, and musical and video compact discs.

The tax authorities were increasing the monitoring of goods to detect any illicit products. Lackay said Sars was setting up scanners, with the largest to be stationed at the Durban port, while mobile units would be assigned to border posts and airports. Currently, Sars examines 6 percent of goods that pass through South Africa's borders. The international trend is 5 percent.

According to the Sars annual report for 2005/06, the number of fake goods seized increased by 60 percent for that period compared with the previous year.

There were 846 seizures (excluding fake cigarettes) worth R450 million, compared with 331 seizures for 2004/05, valued at R232 million. During 2005/06 at least 1 056 seizures of cigarettes (with 228.1 million sticks) were made, with a value of R93.5 million.

Of these seizures, 85.5 percent were fake cigarettes. In the previous year, 533 seizures had been made, amounting to R63 million in value. Lackay said economic growth might fan the trade in fake goods. Syndicates were using fake goods to conduct "roundtripping" - the act of registering goods as though they are destined for another country when, in fact, they may not leave their place of manufacturing.

Meanwhile, the purported exporter manages to receive tax relief on the basis of the goods exported. The trade in fake goods led to fiscal revenue losses estimated at R2 billion a year between 2003 and 2005. Globally, the fake goods industry is worth $500 billion (R3.5 trillion), about 10 percent of global trade in 2005.

Tonny Mafu, www.busrep.co.za