XN000022-1982-08-31 — Page 5

TUESDAY, AUGUST 31, 1982

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BEATING THE COUNTERFEIT RACKET

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BACKED BY NEW LEGISLATION AND A LARGER INVESTIGATIVE FORCE, OFFICERS OF THE CUSTOMS AND EXCISE DEPARTMENT HAVE DEALT A HARD BLOW TO COUNTERFEITERS, RESULTING IN INCREASES IN SEIZURES AND PROSECUTIONS.

IN THE YEAR ENDING MARCH 1982, THE TRADE CONTROLS INVESTIGATION BRANCH (TCIB) OF THE DEPARTMENT SEÍZED COUNTERFEIT GOODS WORTH $17.5 MILLION, UP 17 PER CENT OVER THE YEAR BEFORE.

ABOUT $3.4 MILLION WORTH OF COUNTERFEIT WATCHES - MOST OF THEM BEARING WELL-KNOWN SWISS OR JAPANESE BRAND NAMES - WERE SEIZED IN 1981. IT IS BELIEVED THAT THEY WERE MAINLY INTENDED FOR OVERSEAS MARKETS.

SEIZURES IN THE YEAR BY THE TCIB INCLUDED FAKE PHARMACEUTICAL PRODUCTS, VALUED AT ABOUT $400 000, AND $6 MILLION WORTH OF FASHIONWEAR AND ACCESSORIES WITH FORGED TRADE MARKS OR FALSE DESCRIPTIONS - MOST OF WHICH WERE MADE OUTSIDE HONG KONG - INCLUDING LEATHER GOODS FROM EUROPE AND SPECTACLES FROM JAPAN AND SINGAPORE.

+THESE FIGURES, HOWEVER, DO NOT MEAN THAT COUNTERFEITING IS

A SERIOUS PROBLEM IN HONG KONG, THE COMMISSIONER OF CUSTOMS AND EXCISE, MR DOUGLAS JORDAN STRESSED TODAY (TUESDAY).

+WITH OUR DOMESTIC EXPORTS TOTALLING $81 863 MILLION LAST YEAR, FAKE GOODS WERE ONLY A DROP IN THE OCEAN, HE SAID.

MR JORDAN SAID THAT ONE OF THE REASONS FOR THE DEPARTMENT'S SUCCESSES HAS BEEN THE ENFORCEMENT SINCE APRIL 1981 OF THE NEW TRADE DESCRIPTIONS ORDINANCE, WHICH HAS GIVEN MORE 'TEETH TO THE BRANCH. THE ORDINANCE, AMONG OTHER THINGS, EMPOWERS INVESTIGATORS TO SEARCH WITHOUT A WARRANT ANY NON-DOMESTIC PREMISES SUSPECTED OF ENGAGING IN COUNTERFEITING ACTIVITIES, TO ENABLE PROMPT ACTION TO BE TAKEN.

IT ALSO INCREASED THE MAXIMUM FINE IN THE LOWER COURTS FROM $50 000 TO $100 000 AND TWO YEARS' IMPRISONMENT, WHILE THE MAXIMUM FINE FOR THE HIGH COURT WAS INCREASED FROM $100 000 TO $500 000 AND FIVE YEARS' IMPRISONMENT.

AT THE SAME TIME THE BRANCH INCREASED ITS INVESTIGATING OFFICERS FROM 74 TO 118. ASSISTED WHEN NECESSARY BY OTHER OFFICERS NORMALLY DEALING WITH COPYRIGHT PROTECTION OR ANTI-NARCOTICS WORK, THE BRANCH INVESTIGATED OVER 700 CASES LAST YEAR, 75 PER CENT MORE THAN IN 1980.

THE NUMBER OF PROSECUTIONS INCREASED MORE THAN 100 PER CENT, FROM 105 TO 238, WITH FINES SOARING FROM ABOUT $800 000 TO NEARLY $2 MILLION.

/+IN A