EC Unveils 2006 Counterfeit Goods Seizure Figures

by Ulrika Lomas, for LawAndTax-News.com, Brussels

01 June 2007

Statistics published by the European Commission on Thursday showed a significant increase in the amount of counterfeit and pirated articles seized at the EU's external borders in 2006.

According to the EC, customs officials seized more than 250 million such articles in 2006, compared with 75 million in 2005, and 100 million in 2004.

In a statement, the Commission explained that:

"Medicines, cigarettes and other goods that can seriously damage the health of consumers continue to be faked in large quantities. Changes in the routes used by criminals to trade in fake goods, the use of the internet and the transport of small quantities by air or postal traffic make customs' job even more challenging. However, customs' reply has never been as high as in 2006 with more than 36,000 seizures, an increase of around 40% compared with 2005."

EU Taxation and Customs Commissioner László Kovács explained that:

"Counterfeiting continues to constitute a dangerous threat for our health, safety and the economy. I welcome the work done so far by the customs national administrations. However, I encourage all stakeholders to continue to cooperate and take actions at all appropriate levels: business, national customs administrations, police and other enforcement authorities. The public also has a responsibility here by not being tempted by the cheap fake holiday bargain. International customs cooperation with our major trading partners, in particular China (and India) needs to be further implemented."

Among other things, the 2006 statistics showed that:

• There was an overall 330% increase in 2006 in the number of counterfeit and pirated goods seized by Customs at the external borders of the EU – 250 million compared to 75 million in 2005.
• Customs activity with regard to seizures has never been so high, with an increase of almost 40% – almost 37,000 compared to 26,000 in 2005 – in the number of seizures.
• There has also been a significant increase in cases involving fewer articles. This could be explained by the fact that more traffic has been detected in postal and air traffic, due to booming internet sales.
• China remains the main source for counterfeit goods, with over 80% of all articles seized coming from there.
• More than 60% of the articles seized in 2006 were cigarettes.
• Medicines have additionally shown a dramatic increase in seizures – 2.5 million items compared to 500,000 items in 2005. India is the number one source, followed by the United Arab Emirates and China. Together these 3 sources are responsible for more than 80% of all counterfeit medicines.

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