CBP, ICE Release Annual Report on Counterfeit Goods Seized

December 03, 2009: U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement announced today that in fiscal year 2009 they made 14,841 seizures of counterfeit and pirated goods with a total domestic value of $260.7 million.

The annual intellectual property rights report is now available on the CBP and ICE Web site.

Imports of counterfeit and pirated goods undermine the economic vitality of the United States directly by reducing sales of legitimate goods, and indirectly by reducing employment, incentives to engage in research and development, and tax revenues. Additionally, these goods can threaten the safety of consumers and the security of the United States if the goods are of inferior quality and are used in health care or potentially hazardous consumer goods, or in critical infrastructure such as defense, financial, and telecommunications systems. The theft of intellectual property also undermines the rule of law and often funds organized crime.

“Current economic conditions make CBP’s work to stop trade in counterfeited and pirated goods even more significant,” said CBP’s Acting Commissioner Jayson Ahern, “While we are especially concerned about substandard and unsafe counterfeit imports that threaten consumer safety and national security, we are also protecting American businesses and workers from economic harm.”

“As this global problem continues to grow and increasingly threatens the public’s health and safety, ICE and CBP continue to strengthen our response through the National Intellectual Property Rights Coordination Center,” said John Morton, Department of Homeland Security Assistant Secretary for ICE. “At the center, U.S. government agencies work together across jurisdictions and with partners around the world to protect U.S. trademarks and U.S. consumers.”

In FY 2009, more than 62 percent of the value of seizures of goods infringing IPR that also posed potential safety or security risks came from China. India was the second highest source country with 9 percent. The total domestic value of counterfeit products seized presenting potential safety or security risks seized was $32 million. Pharmaceuticals were the top product in this category

China continues to be the number one source country for counterfeit and pirated goods seized, accounting for 79 percent or $204.7 million of the total seizure value.

For the fourth year in a row, footwear was the top product seized, accounting for 38 percent of the entire domestic value of IPR infringing goods. Jewelry appeared on the top products list for the first time, accounting for four percent of the total domestic value of IPR seizures.

The top 10 categories of IPR infringing products seized include footwear, consumer electronics, wearing apparel, computers/hardware, pharmaceuticals, and toys/electronic games.

As the federal agency responsible for U.S. border enforcement, CBP is a key player in IPR enforcement. CBP’s IPR enforcement focuses on improving risk analysis to enhance the capability to target and interdict shipments of fake goods while facilitating the flow of legitimate trade; identifying business practices linked to importing counterfeit goods and working with companies to change those practices; using audits to deprive counterfeiters and pirates of their profits; working with IPR holders to protect their rights; and cooperating with other government agencies, foreign customs administrations and international organizations to strengthen IPR enforcement around the world.

As the largest investigative arm of the Department of Homeland Security, ICE plays a significant role in targeting criminal organizations responsible for producing, smuggling, and distributing counterfeit products. The ICE-managed National Intellectual Property Rights Coordination Center (IPR Center) is the federal government's central point of contact for criminal investigations of IPR violations. In this state-of-the-art facility, agents and officers from ICE and CBP along with the Department of Commerce, Health and Human Services' Food and Drug Administration, the Department of Justice's Federal Bureau of Investigation and Computer Crime And Intellectual Property Section, and the U.S. Postal Inspection Service, employ a task force model to more effectively use their authorities and resources to attack the international problem of counterfeit, tainted and substandard goods.

U.S. Customs and Border Protection is the unified border agency within the Department of Homeland Security charged with the management, control and protection of our nation's borders at and between the official ports of entry. CBP is charged with keeping terrorists and terrorist weapons out of the country while enforcing hundreds of U.S. laws.