CBP/ICE Seizures in Express Mode Continued to Grow in FY17
Intellectual property rights seizures continued to ascend during fiscal year 2017, CBP and ICE said a statistical report for the year. The statistics show that the number of seizures were up from FY16 (see 1701170021), though the total manufacturer's suggested retail price (MSRP) of the seized goods fell, CBP said in a press release. The number of IPR seizures grew by eight percent to 34,143 in FY17, from 31,560 in FY16. The MSRP of these seizures was down from $1.4 billion in FY16 to $1.2 billion in FY17.
The number of goods seized that come through the express mode of transport continues to grow. "Of the more than 34,000 seizures of counterfeit and pirated goods in FY2017, approximately 90 percent were in the express carrier and international mail environments," the agency said. At the same time, the valuations of seized goods fell. During FY17, seized goods sent via express made up $429 million in MSRP, down from $614.5 million in FY16, CBP said. The seizures via express mode as a percentage of the total MSRP also decreased, accounting for 36 percent in FY17, down from 44 percent the year before. The number of seizures increased by 18 percent to 20,417 during FY17, more than in all other modes combined. The increase in express seizures again coincides with a drop in seized cargo, CBP said.
CBP began to measure "consumer products" as a new category this year, which accounted for the fifth most seized category during 2017, it said. That category includes goods such as "insulated drinking tumblers, cell phone and computer accessories, and lights and light fixtures." The agency also highlighted major seizures of counterfeit "iconic, mid-century, modern design home and office furniture." CBP seized 38 shipments that would have been worth $15.1 million if real, "a 260 percent increase in seizure value from the previous year."
China Remains Top Source of Counterfeits
China remains the primary source country for counterfeit and pirated goods, representing 46 percent of all IPR seizures by MSRP, up from FY16, when it made up 45 percent of the total MSRP of seized goods. The MSRP fell to $555 million in FY17, from $616 million the year before. The number of seized goods originating in Hong Kong also fell, now representing 32 percent of the seized goods. All other countries combined make up less than a quarter of the total MSRP.
Exclusion Order Enforcement
During FY17, CBP completed 115 exclusion order enforcement actions, including seized shipments and excluded shipments, it said. The total number of IPR border enforcement actions was up 12 percent compared with FY16, the agency said. CBP also seized 297 shipments of circumvention devices for violations of the Digital Millennium Copyright Act, a 324 percent increase from 70 such seizures in FY16, 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 $460 million, down from $654 in FY16, made up 38 percent of total seizures, making it the top category.
- Handbags/wallets. Handbags/wallets was the next top category. The MSRP of these seizures was $234 million in FY17 and accounted for 19 percent of the seizures.
- Consumer electronics. Consumer electronics/parts accounted for 7 percent, or $85 million, of the MSRP of seizures in FY17.
- Labels/Tags. Labels/tags accounted for $80.1 million, or 7 percent, up from $17 million, or 1 percent in 2016.
- Wearing apparel/accessories. Wearing apparel and accessories accounted for $75 million, or 6 percent of the total MSRP of seizures, in FY17, down from the $111 million they accounted for in FY16.
- Pharmaceuticals/Personal Care. This category made up 6 percent, or $70 million, of the total MSRP of seizures in FY17.