Concerns over counterfeit goods in e-commerce and express delivery

Enterprises guide delegates to distinguish genuine and fake goods at the seminar on December 6, 2024. Photo: T.H

Businesses struggle with counterfeit challenges

Speakers at the seminar emphasized that the explosive growth of cross-border e-commerce has posed significant challenges for customs authorities at border gates in preventing counterfeit and smuggled goods. Counterfeit goods transported in small packages via e-commerce transactions have become a pressing concern, complicating enforcement efforts.

Nguyen Thi Bao Hang, representing Apple, Chanel, Canon, and other major brands through HOAMI Law Firm, noted that Apple has successfully cooperated to prevent numerous counterfeit and IP-infringing cases in Southeast Asia. Most of the seized goods were small packages delivered through express services.

Similarly, Vu Thi Huyen, Director of THB Law Firm, highlighted cases where counterfeit goods manufactured in Vietnam were exported abroad by splitting shipments into smaller parcels sent to multiple individuals. Upon reaching the destination country, these shipments were consolidated into larger quantities.

Representatives from various brands expressed concerns about the misuse of express delivery and e-commerce to transport and trade counterfeit goods. They urged stronger collaboration with authorities to effectively combat this issue for both imports and exports.

Le Xuan Loc, IP Director at T&G Law Firm, pointed out that counterfeit sales on e-commerce platforms, including the most reputable ones, are not unique to Vietnam but are a global issue. Counterfeit goods are no longer limited to consumer products but have spread to critical sectors such as food, functional foods, and cosmetics.

The nature of e-commerce makes detecting and addressing counterfeit goods more challenging than in traditional business models since consumers cannot physically inspect products. Authorities have implemented decisive measures and encouraged smarter consumer behavior to address this.

To combat counterfeit goods effectively, the Government and e-commerce platforms must enhance accountability, introduce clearer regulations, and deploy efficient tools to curb counterfeiting. Platforms should implement robust filters and collaborate closely with brand owners to minimize the infiltration of low-quality goods.

Consumers are encouraged to prioritize purchases from official stores or reputable vendors, avoiding suspiciously cheap products. E-commerce platforms should provide tools for consumers to report or flag suspected counterfeit items. With strict oversight from authorities and informed consumer choices, community awareness campaigns can help foster a more transparent and healthier market.

Strengthening border controls

Vu Hoai Linh, Deputy Head of the IP Protection Enforcement Unit (Unit 4) under the Anti-Smuggling and Investigation Department, noted that countries like the U.S. and Japan have recorded numerous cases involving counterfeit goods transported through express delivery. In Vietnam, legal frameworks for this sector remain underdeveloped, leading to tactics like invoice splitting to evade Customs inspections.

Tran Van Dung, Deputy Director of the Technical Department, General Department of Market Surveillance, stated that the number of cases involving smuggled, counterfeit, and origin-uncertain goods in e-commerce has surged, with yearly increases.

Nguyen Pham Nhu Ha, Deputy Head of the Supervision and IP Management Division, acknowledged the pressing need for effective mechanisms to regulate express delivery and cross-border e-commerce. While legal amendments in 2020 have provided a foundation, the General Department of Vietnam Customs has initiated further research and revisions to Circular 13/2015/TT-BTC, aiming to introduce detailed processes for inspecting and supervising goods sent via express delivery and e-commerce.

Regarding counterfeit goods exports, Ms. Ha emphasized that Customs has a mandate to inspect and supervise both imports and exports under the IP Law and Customs Law. While there are no specific regulations for handling exported counterfeit goods, Customs authorities have rigorously conducted inspections and transferred cases to relevant agencies such as the Police or Market Surveillance for further action.

Since the beginning of 2024, the Express Delivery Customs Branch under the Ho Chi Minh City Customs Department has intensified inspections of low-value shipments. Nearly 30 suspicious packages containing potentially infringing goods have been temporarily detained.

However, distinguishing counterfeit goods often requires more than visual inspection. Representatives from Customs, Market Surveillance, and the IP Office emphasized the need for cooperation and support from brand owners to address these challenges effectively.