ENFORCEMENT

Office of the Intellectual Property Enforcement Coordinator
importers and rights holders. Likewise, legal options
are preserved, allowing an importer to elect to have the
case adjudicated in the judicial system.
In-Transit Authority.
Similarly, effective IP enforcement of transiting goods
is critically important to preventing the diversion of
infringing goods to neighboring countries. Some
countries’ legal systems take a hands-off approach
to goods transiting through or being transshipped
at their POEs bound for final destinations elsewhere,
even where strong indications of criminal activity
are present.
“To ensure that Customs have the tools necessary
to fight effectively the growing problem of
cross-border counterfeiting and piracy, it is of
paramount importance that Customs have the
ability to suspend counterfeit and pirated goods
destined for export and goods which are in
transit. Practical experience…demonstrates the
importance of customs intervention also with
respect to goods in transit.”
Source: WCO, “Model Provisions for Model Provisions
for National Legislation to Implement Fair and Effective
Border Measures
Within one year of the issuance of this Plan, CBP
and ICE, in consultation with the Departments
of Justice and State and the U.S. Trade
Representative, will evaluate and report on
the existence and implementation of in-transit
customs authority worldwide. This global
inventory of legal authorities and administration
should include plans for regular Federal
assessment and monitoring of global trading
partners’ in-transit authority.
ACTION NO. 3.22: Study the establishment
of an alert protocol. Within two years of the
issuance of this Plan, CBP will evaluate and report
on the impact of allowing countries without
in-transit authority to alert, possibly through
the WCO’s Customs Enforcement Network, the
destination country of suspected infringing goods
destined for their borders. The report should
include a discussion of the benefits to U.S. trade
and economic interests of such an alert protocol.
ACTION NO. 3.23: Promote global adoption
of ex officio authority. Within one year of the
issuance of this Plan, the IPEC will convene and
chair a meeting of the U.S. Interagency Strategic
Planning Committees on IP Enforcement to
identify opportunities to promote ex officio
authority in countries around the world.
To properly enforce IPR for in-transit goods moving
under customs control from country to country, trading
partners must share the obligation to intercept goods,
even if they are destined for consumption in a foreign
country. Rarely do shipments of goods go directly
from the country of manufacture to the country of
importation, especially those moving in containerized
cargo. Rather, they transverse multiple jurisdictions on
their journey to the consumer. Hong Kong and Turkey
are prime examples of countries that see a significant
volume of goods transiting through their countries. 30
While a good portion of this trade is legal, a global
standard on the enforcement of IPR for in-transit goods
must be developed.
ACTION NO. 3.21: Study the ability of
customs administrations around the world to
intercept in-transit goods, inspect suspicious
merchandise, and seize infringing goods.
2. Curb Illegal Operations Within Free
Trade Zones.
Governments are increasingly facilitating trade and
economic development by creating FTZs, which are free
trading jurisdictions within a country characterized by
relaxed customs controls, exemptions from import duties
and taxes, and simplified administrative procedures. FTZs
stimulate a multitude of economic benefits for the host
country, including increased trade, new domestic business
formation and employment, access to foreign investment,
and enhanced opportunities for technology transfer. 31
While FTZs are good for and strongly support
international trade and development, their proliferation
has also attracted the interest of criminal actors that take
advantage of the relaxed oversight and softened customs
controls to manufacture and distribute counterfeit goods. 32
These bad actors typically use FTZs to carry out at least
one of three different types of illegal operations:
SECTION 3
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