Counterfeit products: Top Global luxury brands agree to join customs probe

The anti-smuggling unit of customs in Mumbai alone has seized over a lakh pieces of fake luxury goods including handbags, watches, belts, wallets, shoes and apparels in 2015-16.

“The markets in India are flooded with fake luxury products, commonly called first copy. As there is a lot of capacity in countries like China, Taiwan and others, we have seen a steady increase in smuggling of counterfeit, duplicate products of late,” said Abhay Jyotishi, principal commissioner of customs (preventive) in Mumbai.

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According to Assocham, the market of fake luxury goods in India is likely to touch Rs 6000 crore this year. Globally the fake luxury products market accounts for 7 per cent of the overall luxury market with an estimated value of over $22 billion of the global luxury industry worth about $320 billion.

“Now, under the IPR enforcement rules, if we come across branded goods where the brand owner has registered it with the customs, we notify them. And if the brand owner is willing, he can join the enquiry. If the brand owner declares the seized goods as fake or in any manner IPR infringing, the goods are destroyed within the norms,” said Jyotishi.

Most of the cases involving imports of fake goods booked by the customs pertain to mis-declaration of the brand and the value of the goods.

“The importers have not only violated the IPR rules in these cases but also grossly undervalued the imports,” said Jyotishi.

A report by Euromonitor International reveals that counterfeiting accounts for 5-7 per cent of world trade, about $600 billion. In India, the exchequer suffered a loss of Rs 26,190 crore in 2012, according to a FICCI report.

“A report by the United States Trade Representative has named Nehru Place and Palika Bazaar in New Delhi; Richie Street and Burma Bazaar in Chennai; Manish Market, Heera Panna, Lamington Road and Fort District in Mumbai and Chandni Chowk in Kolkata as markets that need to be watched out for high-volume illicit trade,” said the FICCI report.

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