Counterfeits can be destroyed if importer does not object

Her Majesty’s Revenue and Customs (HMRC) has changed customs law to allow the destruction of suspected counterfeit goods without the brand owner initiating court proceedings.

The amendment to the rules has arisen following criticism of a requirement introduced by HMRC last year which forced a brand owner to commence court proceedings for each consignment of imported fake goods that it wanted to prevent hitting the UK markets. This requirement was introduced in June 2009 as a result of a case at Belfast Magistrates Court in which HMRC was found not to be fully implementing EU law.

According to HMRC, the latest change both rectifies the EU law position and introduces a simplified procedure. Brand owners can now write to the importer claiming that the goods are counterfeits and requesting that they be destroyed. If the importer agrees or fails to respond, the goods can then be destroyed at the expense of the brand owner without them having to go to court. If the importer replies objecting to the destruction, the brand owner must then begin court proceedings or the goods will be released (providing all other customs procedures have been complied with).

This change, which came into force on 16 April 2010, has been welcomed by commentators who hope that it will ease the burden on brand owners by reducing administration and saving costs, particularly where they are trying to stop the importation of lots of small consignments of fake goods.

If you would like advice on how the law can assist you in protecting your brand please contact Andrea Curtis on 01245 453822 or e-mail andrea.curtis@birkettlong.co.uk.