U.S. Customs and Border Protection (CBP) has issued a new administrative ruling to clarify the duty-free exemption status of some low-value shipments to U.S. fulfillment centers and warehouses. Kristina Montanaro Schrader spoke with World Trademark Review about the new ruling, noting it is a step in the right direction, particularly in the e-commerce world.
Previously, said Kristina, the way exemption status worked allowed producers of counterfeit goods to skirt around the rules.
"In recent years, brand owners have seen a big increase in counterfeits entering the United States in small parcels," she said.
"This represents a change from the traditional landscape, where most counterfeits entered the United States in large shipping containers. It's much more difficult for Customs to detect counterfeits in small parcels."
Kristina also noted the new ruling, which "appropriately targets low-value shipments," "essentially makes good on the promise included in the DHS report." She added, "While the DHS report didn't specifically call out Amazon, make no mistake — this policy change directly targets Amazon."