Royal Mail accuses Border Force of failing to stop fake stamps from China

Royal Mail has accused Border Force of failing to prevent counterfeit stamps flooding Britain from China.

A senior executive at the postal service suggested the Government was not doing enough to stop the import of forgeries that are leaving victims with £5 penalties.

A diplomatic row also erupted on Thursday as senior MPs called for Chinese government officials to face ministers while the Communist nation dismissed the claims as “baseless” – and said Royal Mail should investigate its own supply chains.

An investigation by The Telegraph identified four major Chinese suppliers offering to print up to one million counterfeit Royal Mail stamps a week for as little as 4p each – and deliver them to Britain within days.

Security experts warned that the mass production of fakes was a form of “economic warfare” committed with the “tacit approval” of the Chinese Communist Party.

The postal service last week launched a review into its new barcoded stamps amid fears customers are wrongly being forced to pay £5 to collect letters. Sources close to the Royal Mail said fakes printed in China were to blame.

David Gold, director of external affairs and policy at Royal Mail, on Thursday said it was Border Force’s responsibility to stop counterfeits entering the country.

He said: “One of the things which is obvious is if these stamps are coming in from abroad, people’s obvious question will be ‘shouldn’t Border Force just be stopping them?’

“[I would ask] what the Government is doing to put pressure on law enforcement to stop these items coming into the country in the first place.”

It comes after the Home Office recently sacked a whistleblower who raised concerns that hundreds of private jets were landing at one airport with no Border Force security checks.

Mr Gold said Royal Mail had been spurred into introducing the new barcoded stamps in 2022 because his company was losing £19m a year to counterfeits.

It is understood that the convincing Chinese forgeries are being bought unwittingly by small retailers, who are not required to buy stamps directly from Royal Mail.

Mr Gold said counterfeiters were part of a “losing battle” and said Royal Mail’s security team were actively monitoring suspicious shops where they have received intelligence fraudulent stamps are being sold.

He also said he had seen online adverts selling counterfeit stamps in recent weeks, which he said was often the case when Royal Mail announced price rises.

The postal service has increased the price of stamps four times in the past two years, culminating in last week’s rise to £1.35 for a first class stamp and 85p for a second class stamp.

MPs yesterday demanded that China was held to account for allowing fakes to flood the country.

Alicia Kearns, chairman of the foreign affairs committee, demanded the Chinese state launch an investigation and crack down on factories “brazenly” producing the counterfeits.

She said: “It is incumbent upon the Chinese state to now crack down on these companies who are openly supporting illicit trade in stamps, investigate printing facilities and expose those funding them.

“There is evidently a need for enhanced measures to safeguard postal service integrity, enhanced intelligence sharing, and increased efforts to mitigate potential economic and security risks associated with counterfeit postage operations linked to China.”

Labour’s shadow business secretary Jonathan Reynolds said: “This is incredibly worrying for British consumers and small businesses who are being defrauded, the Government must urgently investigate the scale of this forgery and work with Royal Mail, the police and the regulator to clamp down on this criminality.”

The Liberal Democrats called on the Chinese government to face questions from ministers and urging the Foreign Office to arrange a meeting with the Chinese ambassador.

The party’s treasury spokesman Sarah Olney said: “Surely a government minister has to step in to investigate.

“The Government can’t pass the buck on our postal service being undermined by fake stamps, made on the other side of the world. Ministers are missing in action on a potential scandal.

“As part of an investigation, ministers should question Chinese government officials in the UK. No stone can be left unturned, and the public will expect the Chinese embassy to be contacted by the Foreign Office”

However a spokesman for the Chinese embassy dismissed the reports, telling The Times they were “baseless” and “low-level”.

He said that Royal Mail should “have a thorough investigation over the internal supply chain, instead of pursuing the attention of the media” and said claims it was “triggering war by bringing fake stamps” were “totally ridiculous, absurd and ill-intentional”.

A former post office minister also said the Government should review the law around who is allowed to sell Royal Mail stamps.

Until 1989, stamps could only be sold by the Royal Mail and in Post Offices. These rules were relaxed to help improve access to stamps.

Paul Scully, who served as post office minister under Boris Johnson, said it was “always worth a review of the law” but stressed it should not become more difficult for customers to purchase stamps.

Yet a government source told The Telegraph there were no immediate plans to change the law.

A Home Office spokesman said: “We do not tolerate the sale of illegal products and Border Force will take concerted action to stop them crossing our borders by detecting and seizing harmful goods and supporting law enforcement to dismantle the criminal gangs that attempt to smuggle them in.

“Border Force works closely with law enforcement partners to share intelligence and have a strong track record in targeting illicit commodities, and we continue to ensure all goods brought into the UK by passengers are appropriately declared and abide by customs and excise rules.”