US Customs and Border Protection (CPB) is strengthening its grip on counterfeit product smuggling. The Times of India reported that during the first half of 2024, several Indian students and travellers faced intensified efforts to thwart counterfeit goods, leading to the confiscation of several fake luxury items. Some responded to TOI that the staff ran scissors through their clothes or ditched them in the trash can.

According to CPB rules, one person can carry one counterfeit item of each type (such as one shirt, pair of shoes, wallet, jewellery, etc.). Anything over this limit is prohibited.

Recently, a popular reel on social media showed how a lady travelled to the US to meet her family member in Texas, carrying a few apparel items, including shirts, trousers, socks, shoes, etc., which had to undergo strict scrutiny by the officials. They checked her bags, questioned her about the products, and confiscated everything, asserting they were counterfeit. She claimed that the officers threatened her with facing criminal charges.

She described how the officials destroyed some of the clothing before her eyes, which claimed to be worth INR 30,000, and requested the authorities to display such strict rules to benefit the travellers.

Another victim, a student from Hyderabad, shared his experience. He was unaware that buying counterfeit goods, a common practice in India, could lead to trouble in the US. He raised a valid question about the lack of information in the do’s and don’ts guidelines for Indian travellers, leaving them without a checklist to follow.

Another student shared her experience carrying her leftover luggage in a plastic bag. Even this bag and the clothes were not spared from the officials’ scrutiny, leaving her in a difficult situation.

What are the products that are considered as counterfeit as per US law?

The term “counterfeit mark” refers to a fake mark that:

Characteristics of a Counterfeit Mark:

1. Fake Mark Usage

   A fake mark can be used on any goods or services or labels, patches, stickers, wrappers, badges, emblems, medallions, charms, boxes, containers, cans, cases, hangtags, documentation, or packaging.
   

2. Similarity to a Registered Mark

   It looks exactly like, or is almost identical to, a mark officially registered with the United States Patent and Trademark Office (USPTO). This is true whether or not the person using it knew it was registered.

    

3. Connection to Registered Goods/Services
   

   The fake mark is used with the same goods or services for which the original mark is registered with the USPTO. It can also be on any label, patch, sticker, wrapper, badge, emblem, medallion, charm, box, container, can, case, hangtag, documentation, or packaging meant for those goods or services.

    

4. Potential for Confusion

   This fake mark will likely confuse people, make them mistake it for something else, or deceive them.

Similar to Certain Designations:

A specific section of the law can also refer to a fake designation that looks precisely like or is almost identical to a designation protected under the Lanham Act (a law protecting trademarks).

The term “counterfeit mark” does not include any mark or designation used with goods or services if the mark holder authorized the manufacturer or producer to use it during production.

In simple terms, a “counterfeit mark” is a fake mark that looks just like an actual, registered trademark and is used to deceive people into thinking it’s the real thing, except when the trademark owner allows the person using it to do so.

 

Legal Implication

Purchasing counterfeit items and bringing them into the country is prohibited, according to US Customs and Border Protection (CBP). Penalties, both criminal and civil, may follow from doing this. If a registered US trademark is counterfeited in a foreign nation with reciprocal protection rights with the US, the CBP has the authority to seize and destroy the items, whether used for personal or commercial purposes. However, This broad prohibition has one exception: people can legitimately import a certain quantity of counterfeit goods into the US for personal use, as determined by the Secretary of the Treasury and listed in the US Federal Register. Each counterfeit item is limited to one and is not allowed for sale.

 

Conclusion

US Customs and Border Protection (CBP) is rigorously enforcing regulations to curb the smuggling of counterfeit products, significantly impacting Indian students and travellers. The confiscation of fake luxury items during the first half of 2024 underscores the agency’s commitment to protecting intellectual property rights. While CPB rules permit each individual to carry one counterfeit item per type for personal use, exceeding this limit results in strict penalties, including the destruction of goods and potential criminal charges.

The experiences shared by travellers highlight a critical need for better awareness and clear guidelines on the importation of counterfeit goods. The term “counterfeit mark” encompasses any fake mark resembling a registered trademark intended to deceive consumers, except when authorized by the trademark holder. Travellers must familiarize themselves with these regulations to avoid the severe consequences of carrying counterfeit items into the US.

By reinforcing these measures, CBP aims to deter the proliferation of counterfeit goods and safeguard the interests of legitimate businesses and consumers alike. Enhanced communication and education regarding these regulations will be essential to prevent inadvertent violations and ensure a smoother travel experience for international visitors.