China continues to be the leading source of counterfeit items at the EU border, European authorities have found in a new report.
The European Union Intellectual Property Office and the European Union Agency for Law Enforcement Cooperation (Europol) said in a recently released report that counterfeit and copyright-infringing items that are smuggled into the European Union or EU come from China and Hong Kong. Confiscated items at the EU's borders between 2019 and 2020 showed that the items were sourced from these countries.
"IP [intellectual property] crime continues to constitute a substantial threat to the health and safety of consumers. Furthermore, it negatively impacts the E.U. economy," the report stated, as per the Epoch Times. The report estimated that the fake goods imported into the EU in 2019 have an estimated value of 119 billion euros or $130 billion, which make up 5.8% of all EU imports that year.
The report said that these data were "particularly concerning" especially amidst the EU's struggle to recover from the economic repercussions of the COVID pandemic. The report also did not downplay the role of the COVID pandemic in sparking more imports of fake goods from China. It said, "The COVID-19 pandemic has presented new business opportunities for the distribution of counterfeit and substandard goods."
"Criminal networks involved in IP crime have been highly adaptable in adjusting their business model by shifting product focus and marketing," the report stated. But the continued flow of fake goods at European borders is not only due to the COVID pandemic.
The report underscored how China and Russia were "active...in the provision of counterfeit cigarettes for smuggling into the E.U." and that places that feature high retail prices for tobacco products are the most popular destination markets for such products. The report also detailed how Belgian customs officials confiscated up to 126 million counterfeit cigarettes in three different points around Antwerp in January 2020. They found that these counterfeit goods came from Asia. The strategy is that smugglers place illicit tobacco products in containers that head to international ports.
Aside from tobacco, vehicles and spare car parts are another category which China and Hong Kong offer the most in counterfeit trade. Between 2019 and 2020, customs authorities confiscated IP-infringing vehicles and parts and accessories at the EU border. They found that these mostly came from China more than any other nation. Turkey was also the second source of items in this category.
The report highlighted how garages and motorists have taken to sourcing parts online through other channels because of the COVID pandemic's disruption of the supply chain of spare parts. The report said, "Counterfeit parts are increasingly appearing on the market, particularly online."
In recent years, concern about the use of online selling platforms for illicit trade has increased. Last month, he Office of the U.S. Trade Representative published its "2021 Review of Notorious Markets for Counterfeiting and Piracy," which does the first time included ecommerce platforms such as Alibaba and Tencent, which are owned by Chinese Big Tech firms. The report underscored that the productiopn of counterfeit goods is "where the vast majority of child labor, forced labor, and human trafficking occurs." Other labor violations, including unsafe working environment, restrictions on freedom of movement, and suppressed wages are also common in this industry.
