CBP/ICE IPR Seizures and Value of Seized Goods Fell in FY 2014

April 3, 2015 by Tim Warren|Top News

CBP and ICE released statistics on their fiscal year 2014 intellectual property rights seizures (here). The statistics show that the number of seizures fell slightly from FY 2013, as did the total manufacturer's suggested retail price (MSRP) of the seized goods, said CBP in a press release (here). Watches/jewelry was the top category of commodities seized by value, making up 31 percent of the MSRP seized, said CBP.

China Remains Top Source of Counterfeits, Canada Takes Third

China remains the primary source country for counterfeit and pirated goods, representing 63% of all IPR seizures by MSRP, down from FY2013, when it made up 68 percent of the MSRP of seized goods. The MSRP fell to $773 million from $1.2 billion last year. The MSRP of seized goods originating in Hong Kong continued to account for a quarter of seized goods, though the MSRP fell to $310 million in FY2014, said CBP. Canada, not included within the top 10 sources of counterfeit goods last year, moved up to third in FY 2014, said CBP. Goods seized from Canada were worth about $12 million, 1 percent of the total goods seized, the agency said.

Number of Seizures Down 5%, MSRP Falls 30 %

The number of IPR seizures fell by about 5 percent to 23,140 in FY 2014 from 24,361 in FY 2013. The MSRP of these seizures dropped from $1.7 billion in FY 2013 to $1.2 billion in FY 2014.

Auto Parts, Semiconductor Seizures Grown

There was an increase in the number and value of auto parts seizures, said CBP.The number of seizures increased by more than 83 percent from 118 seizures in FY 2013 to 216 in FY 2014 and the MSRP increased 66 percent from $4.1 million in FY 2013 to $6.8 million in FY 2014."These additional seizures included a greater diversity of auto parts seized as compared to previous fiscal years, e.g.,fuel injectors, rearview mirrors, gauges, valves, motor oil, and tachometers," CBP said. There was also 5 percent increase in semiconductors in FY 2014 from the previous year, the agency said. That growth was due to "an increased enforcement focus" on semiconductors and "the safety and security risks they present," said CBP.

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

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

Watches/Jewelry. This category, worth an MSRP of $375 million made up 31 percent of total seizures, was the top category.
Handbags/wallets. Handbags/wallets, the top commodity category for seizures in FY 2013, was the next top category. The MSRP of these seizures was $342 million in FY 2014 and accounted for 28 percent of the seizures.
Consumer electronics. Consumer electronics/parts accounted 13 percent or $162 million of the MSRP of seizures in FY 2014.
Wearing apparel/Accessories. Wearing apparel and accessories accounted for $113 million, or 9 percent of the total MSRP of seizures in FY 2014, down slightly from the $116 million they accounted for last year.
Pharmaceuticals/Personal Care. This category made up 6 percent or $73 million of the total MSRP of seizures in FY 2014.
Footwear. Footwear accounted for 4 percent or $50 million of the MSRP of seizures in FY 2014.