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International Internet Magazine. Baltic States news & analytics Tuesday, 19.03.2024, 03:11

EU Customs Union: combating global fraud in goods

Eugene Eteris, European Studies Faculty, RSU, BC International Editor, Copenhagen, 26.09.2016.Print version
Newly published Commission’s report shows that in 2015 the EU’s share of world trade in goods accounted for almost 15%, worth €3.5 trillion. To manage this volume of international trade requires handling millions of customs declarations per year. However, more than 40 million products violating intellectual property right were detained at the EU's external borders, with a value of nearly €650 million.

The Commission's report aimed to activate EU customs actions to enforce intellectual property rights, IPR has been issued annually since 2000 and is based on data transmitted by the member states' customs administrations to the Commission.

Such data also provides valuable information to support IPR infringements analysis by the OECD.

 

In June 2013, new rules on IPR enforcement at customs were adopted; more information can be obtained in: MEMO/11/332 and MEMO/13/527.

 

The new Customs Regulation has been applicable across the EU member states since 1 January 2015 and strengthens the rules to protect intellectual property. 

 

EU Customs Union

 

The EU Customs Union is a unique arrangement in the world. It is a cornerstone of the European Union and essential for the proper functioning of the Single Market. Once cleared by Customs in one EU state, goods can move freely within the Union on the basis that all other member states apply the same revenue and protection rules at external borders.

 

The 28 customs administrations of the EU must act as though they were one entity, while also facilitating trade and protecting the health and safety of all EU citizens. The customs arrangements are not easy to implement, as soon as the EU is one of the largest trading blocks in the world. In 2015, the EU accounted for almost 15% of world trade in goods, worth €3.5 trillion. Managing this volume of international trade requires handling millions of customs declarations per year in a fast and efficient manner.

 

Combating fraud

 

Customs authorities across the EU seized an estimated five million more counterfeit items in 2015 than the previous year, according to new figures released by the European Commission.


This means that the number of intercepted goods grew by 15% compared to 2014. More than 40 million products suspected of violating an intellectual property right were detained at the EU's external borders, with a value of nearly €650 million.


The new report, based on the enforcement of Intellectual Property Rights (IPR) in the EU also provides figures on the categories of goods detained, on their countries of origin, on the intellectual property rights involved and on the modes of transport used to ship such goods. 

Commissioner for Economic and Financial Affairs, Taxation and Customs, Pierre Moscovici, underlined that the EU customs officials are performing an excellent work in dealing with counterfeit and sometimes dangerous goods.

 

Global criminal activity which swamps the EU internal market with fake and illegal products shows no sign of abating. Thus, he added, the Commission would continue to work with customs authorities, international partners and industry worldwide to ensure a high level of protection for intellectual property rights in the EU.

 

The report has calculated violations in goods and by countries:

 

-By goods: Cigarettes remain the top category (27%) of articles detained, while everyday products which could be dangerous to the health and safety of consumers such as food and beverages, toiletries, medicines, toys and household electrical goods account jointly for 25.8% of the total. 

 

-By countries: China was the main originating country for counterfeit goods (41%), followed by Montenegro, Hong Kong, Malaysia and Benin. The latter was the originating country of a large amount of foodstuff, while Mexico was the top source for counterfeit alcoholic beverages and Morocco for other beverages. Malaysia was in the lead for toiletries, Turkey for clothing, Hong Kong for counterfeit mobile phones and accessories, memory cards, computer equipment, CDs and DVDs and lighters. Montenegro was the biggest originator of counterfeit cigarettes, while India topped the list for medicines.

 

In more than 91% of detentions, goods were either destroyed or a court case was initiated to determine an infringement in cooperation with the right-holder of the brand which is being infringed. 

 

Full report is available at:

 

-Report on EU customs enforcement of intellectual property rights: results at the EU border 2015; General reference at: http://europa.eu/rapid/press-release_IP-16-3132_en.htm; Brussels, 23 September 2016.

 

 






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