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IPR Infringing Goods Seizures Decline in Number and Value in FY 2014

Tuesday, April 07, 2015
Sandler, Travis & Rosenberg Trade Report

U.S. Customs and Border Protection has released statistics showing that both the number and value of its seizures of goods infringing intellectual property rights decreased in fiscal year 2014. Watches and jewelry overtook handbags and wallets as the most seized commodity by value, wearing apparel continued to be the most seized item, and China and Hong Kong continued to account for nearly all of the value of IPR seizures.

Volume and Value of Seizures. The number of IPR seizures fell nearly five percent to 23,140 a year after rising nearly seven percent to 24,361. The value of IPR seizures in terms of the manufacturer’s suggested retail price plummeted 30 percent to $1.22 billion and the average value per seizure dropped 26.0 percent to $52,996.

CBP notes that 44 exclusion orders were enforced in FY 2014, up from 35 a year earlier.

Commodities Seized. The top categories of products seized in FY 2014 were as follows.

Product

Value of seizures

Percent change

Number of seizures

Percent change

Watches and jewelry

$375.4 million

-25.0

1,937

+12.0

Handbags and wallets

$342.0 million

-51.2

2,221

0

Consumer electronics and parts

$162.2 million

+11.2

6,610

+16.9

Wearing apparel and accessories

$113.7 million

-2.1

7,922

-19.9

Pharmaceuticals and personal care items

$72.9 million

-8.4

2,417

+9.1

Footwear

$49.5 million

-9.8

1,961

+16.5

Computers and accessories

$26.7 million

-44.2

906

-14.7

Optical media

$18.8 million

-30.0

1,552

+10.1

Labels and tags

$17.7 million

-57.7

540

-31.5

Toys

$8.2 million

-7.0

303

n/a

Source Countries. China and Hong Kong together accounted for 88 percent of the total MSRP value of seizures, down from 93 percent in FY 2013. China alone represented 63 percent at $772.6 million (down 34.6 percent), followed by Hong Kong at $310.4 million (down 29.0 percent).

Canada ($12.5 million), the United Arab Emirates ($3.8 million) and Kenya ($2.3 million) are new to the top 10 list of source countries this year, while Great Britain, Bangladesh and Pakistan fell out. Other top source countries by value included India ($5.5 million, down 73.2 percent), Taiwan ($3.1 million, down 22.5 percent), Singapore ($2.5 million, down 49.9 percent), Korea ($2.5 million, down 60.1 percent) and Vietnam ($2.4 million, down 45.0 percent).

Shipping Environments. Seizure statistics by shipping environment are as follows.

Environment

Value of seizures

Percent change

Number of seizures

Percent change

Express consignment facilities

$319.9 million

-12.3

112,623

+12.7

Mail

$64.1 million

-16.2

7,300

-14.7

Cargo

$592.5 million

-46.1

1,423

-14.0

Other

$249.7 million

+23.4

1,794

-39.2

Total

$1.23 billion

-29.7

23,140

-5.0

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