Ho Chi Minh City Customs: Preventing many cases of importing goods that violate intellectual property rights

A shipment of imported bearings violating intellectual property rights was seized by the Customs at Cat Lai port. Photo: T.H

Penalties for many violating enterprises

In early September 2024, N. International Trade Services Company Limited imported a shipment through the Saigon Port Customs Sub-department, Region 1, declaring it as a keyboard, computer mouse, quantity of 851 carton boxes, weight of more than 10.5 tons, taxable value of over 1.3 billion VND. The shipment was classified by the system as Red.

Inspecting the actual shipment, Saigon Port Customs Sub-department, Region 1 determined that the imported goods of N. International Trade Services Company Limited included 9 items are consistent with the enterprise's declaration of goods name, quantity, type, origin, commodity code, tax rate. However, on cartons, computer keyboard boxes, on the surface of computer keyboards, and on the surface of computer mice, SURMT is shown with the letter R (Registered - a trademark registered for protection with a state agency - PV) in a circle above, after the phrase SURMT. N. International Trade Services Company Limited could not present the Certificate of Trademark Registration in Vietnam for the SURMT keyboards and computer mice.

Pursuant to Article 7 of Circular 11/2015/TT-BKHCN dated June 26, 2015 of the Ministry of Science and Technology, Point b, Clause 1, Article 6 of Decree 99/2013/ND-CP dated August 29, 2013, amended and supplemented by Decree 126/2021/ND-CP, Saigon Port Customs Sub-department, Region 1, has drawn up a Record of administrative violation against N. International Trade Services Company Limited for violating regulations on false indication of legal status and scope of protection of industrial property rights; imposed an administrative fine of VND 30 million on the enterprise, forcing the removal of infringing elements on the goods.

Being similar to the above violation, at the end of September 2024, the Saigon Port Customs Sub-department, Region 1, fined A Joint Stock Company 30 million VND, forcing it to remove the violating elements on the goods. According to the case file, this company imported a shipment of 21 items of goods, including heat-resistant shirts and pants of all kinds; quantity of 111 cartons, weight of 651 kg, taxable value of nearly 1.5 billion VND.

The results of the actual inspection of the goods determined that the actual imported goods were consistent with the enterprise's declaration of the name of the goods, quantity, type, origin, commodity code, and tax rate. However, on the product packaging, there was the letter R in a circle behind, above the letter D in the phrase "LAKELAND". At the time of the actual inspection of the goods, the company representative said that it had not registered for intellectual property protection in Vietnam for the trademark "LAKELAND".

Previously, in early August 2024, Saigon Port Customs Sub-department, Region 1 also fined C.L. Company 30 million VND for infringing industrial property rights on imported goods. According to the case file, C.L. Company declared the import of a shipment of nearly 40 tons of laundry detergent, fabric softener, ironing liquid, and various types of toothpaste; packed in 2,796 cartons, with a taxable value of 1 billion VND. As a result of the actual inspection of the goods, the Customs authority discovered that the imported goods had incorrect indications about the legal status and scope of protection of industrial property rights, violating Point b, Clause 1. Point a, Clause 2, Article 6 of Decree 99/2013/ND-CP. For this act, in addition to administrative sanctions, the Customs authority applied remedial measures to force the removal of infringing elements on the goods.

Preventing at the border gate

According to Ho Chi Minh City Customs Department, implementing the General Department of Customs' Plan to control smuggling, counterfeit goods, counterfeit goods on intellectual property (IP) and goods infringing IP rights in 2024, Ho Chi Minh City Customs Department has proactively implemented many solutions to inspect, control and detect and prevent many violations right at the border gate. Since the beginning of 2024, the unit has deployed 43 files on IP rights enforcement to branches and Customs Control Teams.

At the same time, direct units to focus on items with high risk of violating counterfeit goods and IP rights, such as consumer goods; electrical appliances, electronic components, household electronics; functional foods, sugar, pharmaceuticals; cigarettes, new generation cigarettes, alcohol, iron and steel, scrap, etc.

In addition to the above cases, on July 30, 2024, Saigon Port Customs Sub-department, Region 1 and the Counterfeit Goods Control and Intellectual Property Rights Protection Team (Team 4) under the Anti-Smuggling and Investigation Department - General Department of Customs coordinated to inspect the imported shipment under the declaration of N.K. Trading and Service Import-Export Company Limited (Phu Nhuan District, Ho Chi Minh City) and discovered a large quantity of counterfeit goods. The enterprise declared the import of a shipment of 28 tons of industrial bearings (including 23 items), 100% new goods, made in China, worth over 430 million VND.

Based on the results of the actual inspection of goods, verification results and specialized appraisal results, the Customs authority determined that the above shipment contained 1 NET brand bearing item which was a counterfeit trademark, 4 SFK brand bearing items and 3 NSK.F brand bearing items which infringed intellectual property rights of the SKF and NSK brands.

Ho Chi Minh City Customs Department also discovered that foreign-invested enterprises also violated intellectual property rights in importing goods. Specifically, the Investment Goods Customs Sub-Department discovered that B. Company Limited imported a shipment of clay used as a thickener for paint and printing ink from the US to Vietnam in violation of regulations on industrial property protection instructions; incorrect instructions on the legal status and scope of industrial property protection; the content printed on products, goods and packaging of goods gave misleading instructions about whether the products and goods bearing the trademark were protected in Vietnam.

Faced with the increasingly sophisticated situation of counterfeit goods and copyright infringements, affecting the ownership rights and economic interests of copyright holders and consumers, Ho Chi Minh City Customs Department believes that it is necessary to control at all levels and sectors according to the functions prescribed by law. For Ho Chi Minh City Customs Department, the work of combating counterfeit goods and intellectual property will continue to be carried out before and during customs clearance of import and export goods; assigned to the control forces at all levels and the Goods Procedure Teams to carry out according to the prescribed functions and tasks.