On January 24, 2020, the Department of Homeland Security (DHS) released its report on fighting trafficking of counterfeit/pirated goods. This report was released a week before President Donald Trump signed an executive order that aims to prevent online sale of foreign counterfeit products to American citizens. Recommendations by the DHS 1. Make entities with financial interest in imports bear responsibility. American Customs and Border Protection (CBP) will adjust its processes: Adjust entry processes and requirements so that all appropriate parties are held responsible for exercising a duty of reasonable care. Treat domestic warehouses and fulfillment centres as the ones responsible for any goods that haven't been sold to a specific customer at the time of importing. This will allow CBP to identify Section 321 abuses. Require formal entry for high-risk shipments irrespective of whether they qualify for duty-free or informal entry. High-risk shipments will be determined by their vulnerability to counterfeiting and source of origin. Provide guidance about customs violations that are actionable under the False Claims Act (FCA), and make information about successful FCA claims publicly available. To be done in consultation with the Department of Justice. The Department of Homeland Security (DHS) will encourage platforms and third-party intermediaries to abandon in bulk and destroy contraband goods that were not interdicted by CBP and may now be in their warehouses/fulfillment centres. Such goods would be notified by the CBP and failure to comply would be a factor in the subsequent counterfeit case. 2. Increase the scrutiny of Section 321…
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