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Border agents finding more counterfeits
Seizures of fake goods have more than doubled in 5 years
By MIKE MADDEN, Gannett News Service

Posted Friday, November 24, 2006
WASHINGTON -- If the price on those sneakers seems too good to be true, it might be.

Seizures of counterfeit goods -- everything from knockoff dresses to fake handbags to phony cigarettes -- have more than doubled at ports and borders in the last five years as Customs and Border Protection officers focus more on stopping increasing piracy in international trade.

Most of the fakes seized come from China, according to government statistics. Apparel, handbags and cigarettes top the list of knockoffs. Worldwide, counterfeiters cost legitimate businesses as much as $600 billion a year, according to the International AntiCounterfeiting Coalition.

Manufacturers say makers of counterfeit goods are basically stealing from them. Business groups and government auditors also say counterfeits raise product-safety concerns because they aren't subject to quality-control regulations. That's a particular concern for the quality of pharmaceuticals, electronic equipment and batteries, all among the top 10 items seized in recent years.

Government reports also say some counterfeiting may benefit terrorist groups like Hezbollah, which is involved in smuggling along the borders of Brazil, Argentina and Paraguay and in other parts of the world.

Many phony goods wind up for sale at flea markets, in bootleg sidewalk sales or in the jumble of busy Internet auction sites.

President Bush ordered tougher enforcement of intellectual property laws in 2004. That led to more seizures, but auditors at the Government Accountability Office say most of the seizures don't yield particularly valuable counterfeit items.

About 75 percent of the 8,022 seizures in fiscal 2005 were of items sent though the mail or confiscated from individual travelers, and those busts accounted for only about 14 percent of the $93 million worth of knockoffs seized during the year. Mail seizures might turn up 20 pairs of counterfeit shoes, while a seaport bust could yield an entire container full of items.

Authorities say they try to focus on items that could be more dangerous for consumers, but the GAO found seizures of potentially hazardous knockoffs accounted for only 10 percent of the total value of items seized in 2005.

The number of seizures is increasing, even as the value fluctuates from year to year, depending on what Customs and Border Protection manages to nab.

It's not clear whether the increased seizures mean there are more fakes entering the country, or the government is catching a higher percentage of the total.

"That's the $10,000 question, really," said Travis Johnson, IACC's associate counsel.