Inadequacies in handling goods that violate intellectual property

This is one of the shortcomings in the fight against and handling of intellectual property (IPR) violations, in the context of the complicated problem of smuggling of counterfeit goods and IPR-infringing goods in Vietnam.

According to the authorities, the key subjects are enterprises operating in import and export in the form of business, processing and exporting; enterprises operating in import and export in the form of temporary import - re-export, transit, trading in goods that directly affect human health, organizations and individuals regularly importing non-commercial goods of key types via air routes, express delivery, imported goods for business through road border gates, seaports, etc.

“The main methods and tricks used by subjects to smuggle and illegally transport counterfeit goods and goods that infringe upon intellectual property rights are to take advantage of the exemption from physical inspection of goods to cheat on quantity and type; falsely declare or not declare on the trademark declaration of imported goods; smuggle through trails and openings; mix infringing goods with non-infringing goods, and declare low value to evade taxes,” said a representative of the General Department of Customs.

For transit goods, the subjects take advantage of simple declaration procedures to not declare the trademark of the goods in order to conceal the act of transporting counterfeit goods. For goods sent to bonded warehouses, the subjects' actions are to put counterfeit goods into bonded warehouses and then find ways to export them to a third country, not excluding the possibility of smuggling from bonded warehouses into the domestic market for illegal consumption.

Notably, in addition to traditional transportation methods, currently, subjects take advantage of e-commerce activities to carry out acts of smuggling and illegal transportation of goods in general, including counterfeit goods and goods violating intellectual property rights, especially taking advantage of express delivery and international postal services.

The key areas where IP violations often occur are Lang Son, Hai Phong, Quang Ninh, Hanoi, Lao Cai, Thanh Hoa, Ha Tinh (Cau Treo border gate), Quang Tri (Lao Bao border gate), Da Nang, provinces in the Southwest border line, Tay Ninh, Binh Phuoc, Ho Chi Minh City, An Giang, Binh Duong, Dong Nai, Ba Ria - Vung Tau...

In fact, the fight against smuggling of counterfeit goods and goods violating intellectual property rights in the customs sector still faces difficulties. Firstly, legal regulations still have problems and shortcomings. For example, regarding the handling of goods infringing intellectual property rights in transit and export, both the Customs Law and the Intellectual Property Law have inconsistent provisions on the suspension of customs procedures and the handling of goods in these two types...

Second, no criminal cases related to intellectual property have been prosecuted because according to Article 192 of the Penal Code, it only applies to acts of producing and trading in counterfeit goods, not to counterfeit goods related to intellectual property.

Third, in the production of counterfeit goods related to export, only handling according to the provisions of Article 12 of Decree No. 99/2013/ND-CP dated August 29, 2013, stipulating administrative sanctions for violations in the field of industrial property does not stipulate the handling authority of the customs force.

Fourth, businesses and copyright owners sometimes lack coordination in the process of exchanging information, fighting, arresting and handling violations.

From the above shortcomings, to further improve the effectiveness of the fight against smuggling, counterfeit goods, and IP violations, the representative of the leadership of Team 4 - Smuggling Investigation Department (General Department of Customs) recommends that competent authorities amend and supplement regulations in legal documents to create consistency in the application of sanctions for violations of counterfeit goods and IP violations; supplement regulations on the authority to impose administrative sanctions for customs forces for violations of industrial property.