Hong Kong has begun to slowly but surely reopen to the world after a long period of isolation due to COVID-19 restrictions. At the time of writing, most restrictions have been eased and Hong Kong’s economy is showing green shoots (signs) of recovery.
Despite the ongoing epidemic, Hong Kong remains a global business center and strategic region. According to a research report released by the Hong Kong Trade Development Council on November 29, 2022, Hong Kong will remain the world’s sixth largest merchandise trade exporter in 2021, the same performance as in 2020. [1] In addition, Hong Kong International Airport is the world’s busiest international air cargo airport, and its container throughput in 2021 ranks ninth in the world. [2]
It is therefore not surprising that in the 2021 review, Hong Kong Customs (“HKC&E”) reported significant achievements in the detection of counterfeit goods, whether sold locally or re-shipped elsewhere. [3] According to the Hong Kong Customs report, 715 infringement cases were cracked that year, a year-on-year increase of 21%; 404 people were arrested, a year-on-year increase of 36%. In addition, the number of infringing items seized by customs reached 3.15 million, a year-on-year increase of 170%, and the total value of seizures was approximately HK$166 million, an increase of 51% compared to 2020.
For now, it looks like this trend will continue into this year (which is likely to be mentioned by Hong Kong Customs in its upcoming 2022 Annual Review), as Hong Kong Customs has seized a large number of goods, some of which are briefly summarized below:
In April this year, Hong Kong Customs seized about 21,000 pieces of counterfeit goods destined for Belize, Central America during inspections at the Kwai Chung Customs Cargo Inspection Ground. The seized goods included handbags, hats, shoes, sunglasses, etc., with an estimated market value of about HK$2 million. [4]
A few months later, in June, Hong Kong Customs seized HK$11.6 million worth of counterfeit designer goods, including handbags, footwear, mobile phones and fashion accessories, and arrested five people in a three-week citywide operation . According to Hong Kong Customs, most of the seized counterfeit goods will be further exported to the United States, Europe and the Middle East, while the rest will be sold locally. [5]
In October this year, the Customs seized counterfeit perfumes and cosmetics with a market value of approximately HK$360,000 and arrested a woman. [6]
Before the opening of the World Cup in Qatar, Hong Kong customs seized more than 100,000 counterfeit football jerseys worth more than 50 million Hong Kong dollars during a two-week special operation. [7]
In the face of this rising trend, brand owners need to focus on Hong Kong when formulating Asian brand protection strategies, especially those brands that use Hong Kong as an important transshipment hub. Hong Kong Customs will continue to step up efforts to investigate and deal with counterfeit goods landing or transiting in Hong Kong, so brands must ensure that they have appropriate protection strategies, including filing with Hong Kong Customs. (Customs filings are a unique and valuable way to combat infringement.)
Although Hong Kong has been temporarily isolated from the outside world due to the long-term restrictions of the new crown epidemic, the speed of counterfeit goods landing or transshipment in Hong Kong does not seem to be slowing down. With the recent loosening of the epidemic situation in mainland China and the gradual lifting of epidemic prevention restrictions in Hong Kong, this situation is expected to continue.
For further information, please contact:
Adelaide Yu, Rouse
ayu@rouse.com
