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»Issue 7, Volume 07 www.scarbrough-intl.com » July 2007 |
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SCARBROUGH NEWS China and the US Working Together against Counterfeiting Fake Gucci purses from China were seized at the port of Detroit last September. There were 9,017 fake purses that had what looks like an “ee” design on them. After the shipment was selected for customs exam, it was determined that the design was indistinguishable from the Gucci trademark, and therefore was a violation of Intellectual Property Rights. On May 30, 2007, Customs and Border protection issued a $2,930,525.00 penalty against the importer of record that was trying to bring in the fake purses. Patents, trademarks, copyrights and trade secrets are all legally protected under Intellectual Property Rights. The Gucci trademark is protected under that law. In 1999, Intellectual Property Rights (IPR) seizures surged. Beanie Babies were a huge craze and quite a collector’s item that helped trigger a surge in IPR seizures. Among other top items that have been seized are cigarettes, apparel, handbags, DVD’s, electronic goods, watches, footwear, toys, games, sunglasses, and headwear. Some of the top countries to export seized goods are China, Hong Kong, Korea, Singapore and Taiwan. With apparel being a large IPR violation, some importers use tricks in order to save money. The importer will import parts or “identifying elements” instead of a finished product. The identifying elements could be tags, buckles, clasps, embroidery, or any other element that would identify the designer. An example would be a Gucci clasp. These elements are of a lower value than a finished product, so if the shipment does get seized, the importer’s loses are less money than if the items were fully assembled. CBP and Immigration and Customs Enforcement have made 14,675 seizures of counterfeit goods worth around $155 million in 2006. With the CBP officers, other government agencies and import specialists working together, they hope to discourage IPR violators. Since the IPR violation surges, Customs is taking action. In order to protect the US economy and strengthen enforcement of these laws, CBP Commissioner Ralph Basham met with Mu Xinsheng, Minister of Customs for the General Administration of Customs of the People’s Republic of China. On May 22, 2007 an agreement was signed that provides for exchanges of information on seizures of counterfeit goods from the two nations. This was done in hopes of enforcing Intellectual Property Rights. Customs will now exchange information on significant seizures each quarter with China, in order to track violators. The information included will be the number of seizures, quantity and value of goods, description and Harmonized Tariff Schedule classification of the commodity, mode of transportation and main ports used for import and export. New enforcement approaches include identifying high-risk shipments for border inspection, and conducting audits of importers. Any high risk shipment is likely to go for an exam. Customs warns consumers that they may risk their health and lives when using fake products. There is no guarantee of the quality of the product that you are getting. -- Brandi Miller, Import Customer Service Representative |
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