ICE Testifies on its In-Bond, Textile, IPR Enforcement Efforts

(See ITT’s Online Archives or 05/21/10 news, 10052180, for BP summary of the testimony of U.S. Customs and Border Protection Commissioner Bersin and Treasury officials at this hearing.)

The enforcement initiatives highlighted in Pena’s written statement include:

In-bond Diversion

KDL

KDL, which was conducted by the Special Agent in Charge (SAC) New York, targeted consolidated containers that were imported from China utilizing false documents listing the merchandise as being inexpensive, low-duty rate items such as plastic shower curtains for multiple companies. The importers had also falsified entry documentation and substituted the counterfeit merchandise with pre-staged items prior to inspection.

FIST

Fraud Investigative Strike Teams (FIST), which began in 2004, focus on protecting the integrity of the in-bond process. FIST has conducted joint operations that focus on identifying the unauthorized manipulations of commercial merchandise within bonded areas and preventing unauthorized access by employees who lack proper immigration documentation and/or the background investigations required to have access to the bonded warehouses.

Textile and Apparel Undervaluation

Operation Mirage

Operation Mirage was initiated after the discovery of several schemes that were used to undervalue textile products imported from China, including, but not limited to, incorrect classifications, underreported quantities, and questionable entry documentation. Mirage operations targeting 176 Importers of Record were conducted between August and November 2009 in the SAC New York and SAC Los Angeles. Pursuant to the operation, ICE special agents and CBP officers identified 90 IORs that imported over $418 million in merchandise and either did not have a legitimate interest in the goods or were fictitious importers. CBP officials are reviewing the entries in an effort to collect additional duties.

Public Health and Safety Concerns

Operation Guardian

Initiated in October 2007, Operation Guardian is in response to the Interagency Working Group on Import Safety, as well as several incidents in which hazardous imports into the U.S. caused serious public safety concerns.

Every year, Operation Guardian initiates surges to target commodities that pose a health and safety risk. Commodities seized since the inception of the program include pharmaceuticals, circuit breakers, extension cords, surge protectors, steel components, honey, shrimp, condoms, and toys, among others. Surge activities, initiatives, and commodities targeted are continually evaluated to ensure the overall success of the program.

Operation Apothecary

Operation Apothecary addresses, measures, and attacks potential vulnerabilities in the entry process to stymie the smuggling of commercial quantities of counterfeit, unapproved, and/or adulterated drugs through the Internet, international mail facilities, express courier hubs, and land borders. 19 Apothecary enforcement surges against courier hubs and international mail facilities have been conducted in FY 2009 and to date in FY 2010.

IPR -- Counterfeiting and Copyright Piracy

The National Intellectual Property Rights Coordination Center (IPR Center) is the U.S. Government’s clearinghouse for investigations into the theft of intellectual property, specifically trademark counterfeiting and copyright piracy. Led by ICE, the IPR Center works closely with its law enforcement partners in routing such theft, and engages the trade community through an active outreach program.

Since July 2008, the IPR Center has coordinated and conducted 420 outreach events with approximately 24,000 industry partners.

The following examples were the direct result of private sector partnership with the IPR Center that led to successful anti-counterfeiting investigations:

Operation Pangea II

From November 15-20, 2009, the IPR Center coordinated the U.S. Government’s participation in Operation Pangea II, an International Internet Week of Action conducted in 25 countries that targeted counterfeit pharmaceuticals and medical devices sold online.

Cisco Systems Joint Investigation

This is an international enforcement initiative between the U.S. and Canada that targets the illegal distribution of counterfeit network hardware manufactured in China. As part of this initiative, Cisco Systems, Inc. has provided technical assistance in the identification of the counterfeit network hardware. (See ITT’s Online Archives or 05/12/10 news, (Ref: 10051235), for BP summary of convictions regarding this investigation.)

International Efforts

The IPR Center also works with the World Customs Organization (WCO), INTERPOL, and the Departments of State, Commerce, and Justice on a variety of initiatives, including providing training in IPR enforcement to our foreign law enforcement partners. In addition, ICE has been an active member of the U.S. delegation that has been negotiating the Anti-Counterfeit Trade Agreement (ACTA).

AD/CVD -- Payment of Duties Owed

ICE is responsible for investigating importers that evade the payment of antidumping and countervailing duties on imported merchandise. ICE special agents work closely with CBP officers, import specialists and regulatory auditors on these investigations. The evasion of AD/CVD orders are often long-term investigations that involve global investigative leads.