Statistics published by the European Commission on 19 May 2008 demonstrate that counterfeiting and piracy are growing. These phenomena are a serious problem: cosmetics, personal care products, medicines and other goods that can seriously damage the health of consumers continue to be faked in large quantities. The high quality of fakes often makes identification impossible without technical expertise. Moreover the large amounts of money invested by criminal organizations in industrial logistics enables them to produce on an industrial scale.  

The routing of bulky consignments containing commercial counterfeit or pirated articles thoughtout the world requires particular attention.  Criminal organizations are trying to avoid customs vigilance by breaking their way through from the area of production to the area of supply.  This technique is called “breaking bulk” and consists of concealing the product’s origin by passing it through several other territories.   Through this method fraudulent goods are able to escape the principal customs controls. Another frequently employed technique is mixing authentic products and fakes in the same consignment.

In 2007, customs registered over 43 000 cases of fake goods seized at the EU’s external border, compared to 37 000 in 2006. This results from improved cooperation between customs and industry, enabling customs to better target suspected shipments and to recognize counterfeit goods with customs controls developments. Despite this, the number of articles seized decreased from 128 million articles last year to around 79 million this year. This is due to a growing number of seizures involving smaller quantities of counterfeit and pirated articles. However, cigarettes and clothing continue to be faked in large quantities and there has been a worrying increase in sectors that are potentially dangerous to consumers.

The Council Regulation (EC)N°1383/2003 is in force since 1 July 2004.  It sets out the conditions under which the customs authorities may intervene in cases where goods are suspected of infringing intellectual property rights.  It also sets out steps to be taken by the authorities when goods are found to be illegal.

If you are interested to learn more about this topic, you can follow our e-learning module on Intellectual Property Rights: “The fake phenomenon and its consequences”.  This module takes on average 90 minutes of your time.  Its objectives are:

• Know how to distinguish between counterfeiting and piracy
• Understand the impact on consumers and society
• Be familiar with the related economic consequences
• Discover the geopolitical fraud trends
• Understand the role of competent international organizations

You can contact ilse.vermeersch@customs4trade.com for more information. 

The Modernised Customs Code (MCC) has been designed by the European Commission to offer benefits to legitimate traders and to simplify customs procedures. This Regulation contains the general rules and procedures which ensure the implementation of the tariff and other common policy measures in connection with trading goods.  These amendments were necessary as a consequence of the important legal changes which have occurred in recent years, such as the Amendment to the International Convention on the simplification and harmonisation of customs procedures (the revised Kyoto Convention).  

The new Code should be the key element to ensure that electronic declarations and processing are the rule and paper-based declarations and processing the exception !

The amending Regulation on the EU Modernised Customs Code has been published on EU Official Journal No L145 of 04/06/08. 

With respect to the effectiveness to the MCC the following should be noted: Certain articles of the MCC will become effective as of June 24, 2008.  However, the impact on your business as of June 24, 2008 will be rather small.  The major part of the articles of the MCC will only be applicable as of the implementation date of the implementing provisions of the MCC.  According to the provisions of the MCC the implementing provisions will become effective between June 24, 2009 and June 24, 2013.  At that time the impact of your business should be evaluated.