Brussels, 08/02/2005 (Agence Europe) - The recent statistics published by the Commission on counterfeiting and piracy for the year 2003 show that the European Union, in spite of “some of the best” legislation in the world (according to Commission experts) is unable to halt the constant flow of counterfeit and pirated goods from third countries entering the Community territory every day. The skills and resources of the criminals, combined with the constant changes to the routes used for these types of products complicate the work of European customs services. Controls based to a greater extent on risk-analysis and strengthening international cooperation should help check this phenomenon.
One rose in every two is counterfeit. Anything which can be bought and sold is vulnerable to counterfeiting and piracy. Nothing escapes; not apples, toys, mineral water, perfumes, cosmetics, compact discs, mobile phones, sweets, waffles, chewing gum, alcoholic beverages or cigarettes… “Counterfeiting saps competitiveness and endangers the health and safety of consumers”, declared László Kovács, Commissioner for Taxation and the Customs Union, presenting the 2003 statistics on counterfeiting and piracy in the Union to the press on Tuesday. He added: “It is a serious problem and the threat is growing. Customs are at the front line in the fight against counterfeiting and piracy”. In 2003, they seized almost 100 million items, which was a 9% rise compared to 2002, representing a value of a billion euros. But according to László Kovács, in reality this figure is just “the tip of the iceberg”, because estimates of the total value of revenue generated by counterfeiting and piracy are around “400 billion euros”.
To really understand counterfeiting and piracy, they must be put in the context of their evolution. Analysis of statistics confirms that counterfeiting mainly affects staple goods and that counterfeiting of luxury products tends to the marginal. 32 million compact discs, DVDs and cassettes were seized in 2003. Compared to the year before, the biggest rises in seizures was of toys (+996%), cosmetics and perfumes (+800%) and foodstuffs (+77%). Watches and jewellery, on the other hand, constitute no more than 1% of merchandise seized, which is a drop of 58% compared to 2002. Analyses also show that counterfeiting and piracy are dedicated followers of fashion. As soon as a trend appears, particularly among young people, for a particular product or brand, it will automatically be counterfeited or pirated. Finally; the routes taken by these products change constantly in reaction to controls performed. In 2003, with increases in online shopping, one third of the all the products seized were being sent by post.
Asked about the impact Enlargement will have on the 2004 statistics, László Kovács declared himself “optimistic”. The figures available for the first nine months of 2004 do show a 10% increase in seizures, but this rise will “stabilise”. The Commissioner mentioned the efforts made by the new Member States in customs matters and indicated that those countries will also understand the importance of combating counterfeiting; He gave his own country; Hungary, as an example of one of the star pupils in this fight. In 2004, Hungarian customs authorities made record seizures of dozens of thousands of pots of cosmetic crème. Nonetheless, the Commission experts say that “the new land borders (of the European Union) are becoming dangerous”, with countries like Belarus and Ukraine being countries through which counterfeit and pirated goods transit because “controls of road traffic are some of the hardest to carry out”.
Two elements allow the fight against counterfeiting and piracy to be stepped up: improvements in control techniques, and international cooperation. European legislation is some of the strictest in the world, because it allows for controls on goods in transit, even if they are not destined for the Community market. At EU level, the aim is to control less, but more effectively. Control technique should be harmonised and base them more on risk analysis and techniques for fighting drug-smuggling.
“Global phenomena need a global response”, declared László Kovács, who favours enhancing relations with third countries, companies which hold rights and which are victims of the phenomenon, the World Customs Organisation and Interpol. The Commissioner considers the customs cooperation agreement with China to be “an important tool” and welcomed the “recent reinforcement of Chinese legislation”. In 2003, the vast majority of products seized came from Asia, 60% of which originated in China.