Hong Kong Customs seizes suspected counterfeit luxury goods
17 May 2021
Hong Kong Customs recently seized about 22,000 items of suspected counterfeit goods with an estimated market value of approximately HK$2.7 million (US$348,000) at the Tuen Mun River Trade Terminal.
Through risk assessment, Customs officers on that day inspected two 40-foot containers arriving from Nansha, Guangdong. Upon inspection, officers found inside the two containers the batch of suspected counterfeit goods, including mobile phone accessories, handbags, shoes and watches.
“From our experience, we understand that Customs generally act on tip-off (for example, from brand owners who are already investigating/monitoring the infringers in Mainland China) or because the infringers are subject to pending investigations by Customs. In the present case, given the substantial size of the seizure, it is unlikely the inspection by Customs was random. It is more likely that Customs was acting based on tip-off or because the infringers may already be subject to pending investigations by Customs,” says Kelley Loo, a partner from Deacons’ Intellectual Property practice in Hong Kong. “Having said that, Customs may also sometimes conduct random inspections although in this case, given the size of the seizure, we believe the chance that the inspection was random is quite small.”
Initial investigations revealed that the two batches of suspected counterfeit goods would have been re-exported to North American and Middle East countries.
“Yes, goods from Mainland China are often shipped to Hong Kong, and then re-exported to foreign countries. We understand this is due to Mainland China’s restrictions on exportation of goods. In contrast, Hong Kong is a free port and does not levy any Customs tariff on imports and exports (except excise duties that are levied on certain dutiable commodities). Further, Hong Kong has also entered Free Trade Agreements with certain countries whereby Hong Kong exports can enjoy preferential tariff treatment in foreign countries under certain conditions,” Loo says. “Under the Hong Kong trademark laws, even if the goods shipped into Hong Kong are meant for re-exporting to foreign countries, they are still subject to Hong Kong laws.”
Johnny Chan
