A Critical Analysis of Commercial Frauds in the International Supply Chain with Available Remedies in Pakistan

Shan Ali; Waqas Irshad; Faheem Raza Khuhro

doi:10.33152/jmphss-6.3.7

Shan Ali Bahria University, Islamabad, Pakistan
Waqas Irshad Bahria University, Islamabad, Pakistan
Faheem Raza Khuhro Boston University, Boston, MA

DOI: https://doi.org/10.33152/jmphss-6.3.7

Keywords: International trade, International trade transactions, Supply chain, Commercial frauds, Economic crisis, World trade organization

Abstract

Due to the result of globalization, international trade and supply chains have rapidly been witnessed across the borders, which has forced the law makers and jurists to develop legal framework for the issues arising out of fraud involved in transaction of supply and chain. However, World Trade Organization (WTO) has been playing a dominant role in policing the issue of commercial fraud in the supply chain by providing guidelines and mechanism to the member states for the enactment within the national laws. Consequently, Pakistan as a developing country has brought a number of legal reforms in its national legislation and has made attempts in tackling the issue as per the guidelines provided by WTO but such reforms have proved to stillborn for its ineffectiveness in dealing with commercial fraud in the international supply chain. Therefore, this study highlights the disputes arising in the supply chain and explores the reasons for the ineffectiveness of existing mechanism to resolve these conflicts at the national level by critically analyzing existing laws in light of the International Trade Law (ITL) and IL. In this context, this study highlights the major issues and suggest factor which can be incorporated into existing laws. This study suggests that there should be a proper mechanism and legal framework which identify

References

Abbasi, A., Albrecht, C., Vance, A., & Hansen, J. (2012). Metafraud: a meta-learning framework for detecting financial fraud. Mis Quarterly, 36(4), 1293-1327.

Bull, C. (2019). An Effective Platform for International Arbitration: Raising the Standards in Speed, Costs and Enforceability. In International Organizations and the Promotion of Effective Dispute Resolution. Brill Nijhoff, Leiden, Netherlands.

Cho, S. (2003). The nature of remedies in international trade law. U. Pitt. L. Rev., 65, 763.

CRS (2022). Trade Remedies: Antidumping. Retrieved from https://crsreports.congress.gov/product/pdf/R/R46296

ITD (2009). Trade Remedies: A Tool Kit. Retrieved from https://www.adb.org/sites/default/files/publication/27526/trade-remedies-toolkit.pdf

Jam, F. A., Akhtar, S., Haq, I. U., Ahmad-U-Rehman, M., & Hijazi, S. T. (2010). Impact of leader behavior on employee job stress: evidence from Pakistan. European Journal of Economics, Finance and Administrative Sciences, 21, 172-179.

Jam, F. A., Mehmood, S., & Ahmad, Z. (2013). Time series model to forecast area of mangoes from Pakistan: An application of univariate ARIMA model. Acad. Contemp. Res, 2, 10-15.

Khan, T. I., Jam, F. A.., Anwar, F., Sheikh, R. A., & Kaur, S. (2012). Neuroticism and job outcomes: Mediating effects of perceived organizational politics. African Journal of Business Management, 6(7), 2508-2515.

Soud, D. (2020). Downstream Oil Theft: Countermeasures and Good Practices Concrete Countermeasures Report, Atlantic Council P. Available at http://www.jstor.com/stable/resrep24588.5.

Suy, E. (1981). Achievements of the United Nations Commission on International Trade Law. The International Lawyer, 15(1), 139. Lotta, F., & Bogue, J. (2015). Defining food fraud in the modern supply chain. Eur. Food & Feed L. Rev., 10, 114-122.

Drake-Brockman, J. (2019.) An Australian perspective on the Australia-EU free trade agreement. Potential Benefits of an Australia-EU Free Trade Agreement, Key Issues, and Options. Adelaide, Australia: University of Adelaide Press.

Button, M. (2012). Cross-border fraud and the case for an “Interfraud”. Policing: An International Journal of Police Strategies & Management, 3592), 285-303. https://doi.org/10.1108/13639511211230057

Younus, M. (2021). The rising trend of fraud and forgery in Pakistan’s banking industry and precautions taken against. Qualitative Research in Financial Markets.

Aalim, M. (2018). Supply Chain Management Issues and Challenges in Pakistan’ (Scribd). available at https://www.scribd.com/document/268585547/

CIPE (2014). Multinationals Discuss Issues with Supply Chain Compliance in Pakistan. Available at https://www.cipe.org/blog/2014/05/27/multinationals-discuss-issues-with-supply-chain-compliance-in-pakistan/

Mugarura, N. (2014). The Letter of Credit, its resilience and viability in securing international commercial transactions. London, UK: Global Action Research and Development Initiative Limited.

Wong, P. L. (2018). Supply Chain Fraud: Common Examples and Risk Management Best Practices. available at https://www.linkedin.com/ pulse/supply-chain-fraud-common-examples-risk-management-best-pei-li-wong

Philip I. & Levy, (1997). A Political-Economic Analysis of Free-Trade Agreements. The American Economic Review, 87, 506.

Karim, S. (2014). Trade Policy Reforms in Pakistan, Southern Illinois University Carbondale Open SIUC. Retrieved from https://opensiuc.lib.siu.edu/cgi/viewcontent.cgi?article=1717&context=gs_rp

Repousis, S., Lois, P., & Veli, V. (2019). An investigation of the fraud risk and fraud scheme methods in Greek commercial banks. Journal of Money Laundering Control, 22(1), 53-61. https://doi.org/10.1108/JMLC-11-2017-0065

Deshpande, V. S. (1989). The applicable law in international commercial arbitration. Journal of the Indian Law Institute, 31(2), 127-135.

Aladwan, Z. (2020). The implementation of the fraud exception rule: A comparative study. Journal of Financial Crime, 27(3), 977-993. https://doi.org/10.1108/JFC-02-2020-0016