CBP/ICE IPR Seizures Down Slightly in FY 2012, While Value of Seized Goods Increased

January 18, 2013 by Tim Warren|Top News

CBP and U.S. Immigration and Customs Enforcement issued statistics on their fiscal year 2012 intellectual property rights seizures. The statistics show that while the number of seized counterfeit goods has decreased since FY 2011, the total manufacturer's suggested retail price (MSRP) of the seized goods increased , said CBP. Handbags/wallets remained at as the top category of commodities seized by value, making up 40 percent of the MSRP seized, said CBP

Number of Seizures Down 8%, but MSRP Up

The number of IPR seizures fell by about 8 percent to 22,848 in FY 2012 from 24,792 in FY 2011. The MSRP of these seizures grew from $1.1 billion in FY 2011 to $1.3 billion in FY 2012. The domestic value -- the cost of the infringing merchandise when it was last purchased plus all duties, fees, broker’s charges, unloading charges, U.S. freight charges to bring the property to the importer’s premises, and profit -- of all IPR seizures in FY 2012 decreased by 12.2 percent compared to FY 2011.

(Past statistical releases included more information on domestic value. The FY 2012 report said "to more realistically represent the economic impact of intellectual property rights theft, CBP and ICE are focusing on the" MSRP.)

Top safety and security products seized include: (i) pharmaceuticals (representing 57% of MSRP), (ii) consumer electronics (23%); (iii) cigarettes (9%); (iv) critical technology components (7%); (v) automotive (3%); (vi) toys (less than 1%); (vii) food (less than 1%); (viii) sporting goods (less than 1%); (ix) lighters (less than 1%); (x) knives (less than 1%); and (xi) all other commodities (less than 1%).

International Mail Seizures Rose 18%

IPR seizures in the international mail and express facilities continued to outpace IPR seizures in cargo and other environments for FY 2012, said CBP. However, due to the size of shipments, the MSRP of IPR seizures in the cargo environment exceeded international mail and express seizures, it said. The number of seizures at international mail facilities grew by 18 percent from FY 2011 to 9,852, while seizures from express couriers dropped 22 percent to 8,490.

The Internet has fueled explosive growth in the numbers of small packages of counterfeit and pirated goods shipped through express carriers and mail, said CBP. CBP and ICE have increased their efforts against the websites involved, with ICE taking down 697 sites and CBP handling the forfeitures, said CBP.

Handbags/Wallets, Watches/Jewelry Remain at Top of the List for MSRP

The following commodities were the top IPR seizures in terms of MSRP:

Handbags/wallets. Handbags/wallets was the top commodity category for seizures in FY 2012. The MSRP of these seizures increased 142.2 percent to $511 million compared to FY 2011. The category also accounted for 10 percent of the seizures.

Watches/Jewelry. This category, worth an MSRP of $187 million, saw an 8.3 percent increase in MSRP from FY 2011 to FY 2012. Watches and jewelry seizures made up 8 percent of total seizures

Wearing apparel/Accessories. Wearing apparel and accessories accounted for $133 million, or 11 percent of the total MSRP of seizures in FY 2012, down slightly from the $142 million they accounted for last year. This category was also involved in 29 percent of the total seizures.

Consumer electronics. Consumer electronics/parts accounted 8 percent or $104 million of the MSRP of seizures in FY 2012.

Footwear. Footwear accounted for 8 percent or $103 million of the MSRP of seizures in FY 2012.

Pharmaceuticals/Personal Care. This category made up 7 percent or $83 million of the total MSRP of seizures in FY 2012.

In terms of volume, wearing apparel accounted for the largest number of seizures, representing 29% or 7,805 items seized. Consumer electronics accounted for 15%, optical media 11% and handbags/wallets/backpacks 10%, pharmaceuticals 9%, and watches/jewelry 8% in terms of total number of items seized.

China Remains Top Source of Counterfeits, Representing 72% of All Seizures

China remains the primary source country for counterfeit and pirated goods, representing 72% of all IPR seizures by MSRP. In FY 2012, seizures of infringing goods from China and Hong Kong totaled $1.1 billion, which is a 10.4% increase from FY 2011. Handbags/wallets made up 49 of these seizures, said CBP.

Peru was added to the top ten source economies list due to the seizure of nearly $2 million in counterfeit wearing apparel, predominately sportswear and team jerseys, said CBP.

See ITT's Online Archives 12011012 for summary of CBP/ICE's FY 2011 IPR seizure statistics.)

CBP's press release is (here).