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CBP’s New York/Newark Seaport Officers Thwart Counterfeiters with Major Seizures of Fake Goods

(11/05/2007)
Most people identify sneakers as footwear, but not-so-clever smugglers thought they could fool U.S. Customs and Border Protection officers and import specialists at Newark Seaport in New Jersey by describing containers of counterfeit footwear as plastic forks, brake pads or Christmas wreaths.

CBP has the responsibility for stopping the importation of merchandise that violates trade names, registered trademarks and copyrights whose owners have sought protection by recording their rights with the agency.

Newark CBP officers examine a seized a shipment of counterfeit Coach handbags, travel bags, and wallets, valued at $275,000.

During the past 12 months CBP officers and import specialists working in the New York and New Jersey seaports seized a record amount of counterfeit and pirated goods. During fiscal year 2007, goods valued at over $60 million were seized for various intellectual property rights violations, a new port record.

In 2006, more than $25 million worth of IPR-violating goods was seized; in 2005, the total value for seized goods for IPR violations was more than $18 million, reflecting significant seizure increases, by domestic value, of almost 144 percent from 2006 to 2007, and 238 percent from 2005 to 2007.

During the first three weeks of fiscal ‘08, New York/Newark Seaport officers and import specialists scored multiple seizures of counterfeit goods. Among the catch were notable busts of trademarked Yoki Sport jackets, trademarked Nike Air Jordan sneakers, and Coach, Gucci, and Louis Vuitton tote, travel, and handbags valued at $4.4 million.

The majority of IPR violations for imported goods arrive in shipments from China, Hong Kong, Korea, Singapore and Taiwan.

Historically, smugglers have used false walls of shipping containers to conceal narcotics; however, Newark’s officers were a bit surprised when they uncovered fake Nike sneakers hidden behind a false wall in a refrigerated container.

Another attempt at concealment seemed like a variation of those Russian nesting dolls or Japanese puzzle boxes where the smaller objects are stacked inside the larger figures: here, it was wallets within bags within bags – Gucci and Channel merchandise hidden inside cheap, no-name handbags.

And, very large wooden frames, bordering works of art, were the chosen “safes” for counterfeit handbags and wallets until Newark CBP officers “broke” into them.

Whether it is brand name items such as Beanie Baby stuffed toys, or Cabbage Patch dolls, Rolex watches, Gucci wallets, or fake products that impact public health and safety concerns like tainted toothpaste, foodstuff and pharmaceuticals, or electrical products, CBP officers target, intercept, detain, seize and destroy merchandise that violates IPR regulations.

Their efforts are complemented by referrals from the Los Angeles National Targeting and Analysis Group. CBP agriculture specialists and import specialists also have made significant contributions. Training and cooperation from within the industry itself has enhanced CBP officers’ and import specialists’ expertise in learning how to tell the difference between what is real or not.

“The efforts of CBP are changing the dynamics of the counterfeit Intellectual Property Rights trade in the New York/Newark Area,” said Adele Fasano, area director for New York/Newark . “These efforts reflect the commitment of CBP to keep illegitimate goods out of the commerce of the United States.”

Besides the actual counterfeit merchandise being illegally imported, shrewd operators attempt to bring in fraudulent designer labels, tags and logo’d pieces, which for them, may be more cost-effective.

The counterfeiting of products that can harm the health and safety of consumers is particularly troubling. Several of Newark Seaport’s seizures for IPR violations also were considered to be health and safety concerns. For example, during fiscal year 2007, seizures included electrical heavy-duty extension cords bearing fake safety certification trademarks, valued at $565,203; seizures of toys worth $34,649; and toiletries such as toothpaste, shampoo, and soap, valued at $310,188.

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