CBP/ICE IPR Seizures and Value of Seized Goods Up in FY 2015
CBP and ICE released statistics on their fiscal year 2015 intellectual property rights seizures (here). The statistics show that the number of seizures were up from FY 2014 (see 1504030019), as was the total manufacturer's suggested retail price (MSRP) of the seized goods, said CBP in a press release (here). The number of IPR seizures grew by 25 percent to 28,865 in FY 2015 from 23,140 in FY 2014. The MSRP of these seizures was up from $1.2 billion in FY 2014 to $1.3 billion in FY 2015.
Increasingly, seized goods are coming through the express mode of transport. During FY 2015, seized goods sent express made up $436.6 million in MSRP, up from $319.9 in FY 2014, said CBP. As a percent of the total MSRP also increased, accounting for 32 percent in FY 2015, up from 26 the year before. That increase coincides with a drop in seized cargo, said CBP. Cargo seizures fell 16 percent to $495.6 million in MSRP from $592.6 in FY 2014. Cargo seizures as a total of MSRP also fell, making up 37 percent, down from 49 percent a year earlier.
Meanwhile, the number of cargo seizures declined by 10 percent, while express seizures were up 18 percent, year over year. CBP noted that the agency partnered with the Express Association of America in FY 2015 to establish "a new process which allows for the voluntary abandonment of detained goods." This new process "resulted in 2,857 voluntary abandonments and an estimated $2.2 million in interdiction cost savings to the government," said the agency.
China Remains Top Source of Counterfeits
China remains the primary source country for counterfeit and pirated goods, representing 52 percent of all IPR seizures by MSRP, down from FY 2014, when it made up 63 percent of the total MSRP of seized goods. The MSRP fell to $697 million from $773 million last year. The number of seized goods originating in Hong Kong increased, now representing 35 percent of the seized goods. The MSRP also increased to $472 million from $310 million in FY 2014, said CBP. Singapore moved up to third in FY 2014, said CBP. Goods seized from Singapore were worth about $10 million, less than 1 percent of the total goods seized, the agency said.
Exclusion Order Enforcement Actions Triple
During FY 2015, "CBP completed 152 exclusion order enforcement actions (shipments seized and shipments excluded), an increase from 53 in FY 2014," it said. The total number of IPR border enforcement actions was up 37 percent compared to FY 2014, the agency said. Exclusion order action was up in other measures too. The MSRP for the seized goods was $8.7 million, up from $33,725 the previous year. CBP also gave far more "advice to ports" and seized 26 shipments related to exclusion orders, compared to two the previous year, it said.
Watches/Jewelry Continue to Top the List for MSRP
The following commodities were the top IPR seizures in terms of MSRP:
- Watches/Jewelry. This category, worth an MSRP of $580 million, up from $375 million last year, made up 43 percent of total seizures, was the top category.
- Handbags/wallets. Handbags/wallets was the next top category. The MSRP of these seizures was $208 million in FY 2015 and accounted for 15 percent of the seizures. Both the value and percent of total decreased
- Wearing apparel/accessories. Wearing apparel and accessories accounted for $157 million, or 12 percent of the total MSRP of seizures in FY 2015, up from the $113 million they accounted for last year.
- Consumer electronics. Consumer electronics/parts accounted 10 percent or $132 million of the MSRP of seizures in FY 2015.
- Pharmaceuticals/Personal Care. This category made up 6 percent or $75 million of the total MSRP of seizures in FY 2015.
- Footwear. Footwear accounted for 5 percent or $64 million of the MSRP of seizures in FY 2015.