Suspicion enough to seize counterfeit goods in transit
by Katy - Murcutt
08 February 2011, filed under Consumer
Advocate General Pedro Cruz Villalon, an advisor to the European Court of Justice, has said that reasonable suspicion of counterfeit goods is sufficient to seize the goods when in transit.
European customs authorities may confiscate counterfeit goods if they believe they would end up for sale in the European Union, even if the goods are on their way to non member country.
It has not yet been decided whether the ECJ will follow this advice. If the court does it may, to some extent, reverse a ruling by the High Court on the impounding of forged goods that pass through the UK on their way to another country.
The High Court supported a decision by HM Revenue and Customs (HMRC) not to persist to seize counterfeit telephones which were in the UK temporarily during their journey from Hong Kong to Colombia.
Nearly 500 Nokia-branded mobile phones and accessories were seized by HMRC at Heathrow Airport almost 3 years ago. Nokia quickly confirmed the mobile phones to be imitations after samples were sent to the company for inspection.
The Counterfeit Goods Regulation and the Trade Marks Directive indicated that the goods could not be seized because the mobile phones were not going to be sold within the European Union.
After Nokia appealed the decision, the Court of Appeal requested that the ECJ clarify whether a customs authority has the power to seize counterfeit goods if it can be proved the goods will end up on sale within the EU.
The HMRC stated that it was unable to detain the phones because it had no proof they were to be placed for sale in the EU, after which Nokia took legal action.
The ECJ is yet to rule on the case but there are recommendations to enable customs authorities to confiscate suspected fakes.
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