RESTRICTED
WORLD TRADE IP/C/W/35
17September 1996
ORGANIZATION(96-3653)
Original: English Council forTrade-Related Aspects
ofIntellectual Property Rights
TECHNICAL COOPERATION ACTIVITIES: INFORMATION FROM
OTHER INTERGOVERNMENTAL AGENCIES
World Customs Organization
Atitsmeeting of22to25July1996, theCouncil forTRIPS agreed torequest certain
intergovernmental organizations toupdate theinformation ontheirtechnical andfinancial cooperation
activities relevant totheimplementation oftheTRIPS Agreement (IP/C/M/7, paragraph 40).
Thepresent document reproduces theinformation which hasbeenreceived from theWorld
Customs Organization bymeans ofacommunication, dated 19August 1996.
Communications fromother intergovernmental organizations willbecirculated asaddenda to
thisdocument.IP/C/W/35
Page2
THE WORLD CUSTOMS ORGANIZATION
TECHNICAL COOPERATION ACTIVITIES INTHE AREA OF
INTELLECTUAL PROPERTY RIGHTS, RELEVANT TO
IMPLEMENTATION OFTHE TRIPS AGREEMENT
WCO Mission
TheWCO isanindependent intergovernmental body with142Members, whose mission is
toenhance theeffectiveness andefficiency ofCustoms administrations intheareas ofcompliance with
trade regulations, andprotection ofsociety andrevenue collection.
OurenforcementaimsaretoassistMemberstoimprovetheeffectivenessoftheirbordercontrols
and(through theexchange ofinformation) toincrease international cooperation among Customs and
withbusiness. Wehavebeenpreparing them forarolewhich, formany, willbenew-theborder
enforcement ofIPR.
Customs arewell-placed totackle IPRviolations. Situated atports, airports andlandfrontiers,
theyarethepeople whoexamine cargo andquestion passengers astheyenter orleave thecountry.
Borders must surely bethemost effective place tointercept bulkconsignments ofinfringing goods,
before theyareexported, orbefore theymove inland fordistribution.
However,fewCustomsservicescurrentlyhavetheauthoritytocombatcounterfeitingandpiracy.
Existingtrademarkandcopyrightlawswereenactedlongbeforecounterfeitingandpiracywereproblems
ofgrave concern ininternational trade.
Giving Customs thePowers
Lastyear,theWCO Council adopted model legislation which countries could useforpreparing
national legislation, should theydecide togivetheirCustoms services appropriate powers toassist in
fighting counterfeiting andpiracy.
Themodel maybeadapted tosuitspecific national requirements, andwhile some countries
mayadopt stronger legislation, others maynotbeabletofulfil alltheprovisions ofthemodel. This
isconsistent withTRIPS, whose Customs provisions consist ofbasic enforcement features which all
countries should provide, butallow sufficient freedom fordiffering procedures andpractices in
accordance witheachcountry 'slegaltraditions.
TheTRIPS Council, atitsfirstmeeting, noted thatitwasnotthejoboftheTRIPS Council
toapprove ordisapprove theWCO 'smodel legislation, which didnotconstitute anofficial interpretation
oftheTRIPS Agreement, thisbeing ataskthatonlytheWTO could undertake. ButtheTRIPS Council
welcomed theinterest andactivity oftheWCO inregard totheCustoms enforcement ofIPRs, and
itsconcern totakeintoaccount theprovisions oftheTRIPS Agreement, andstressed theimportance
ofamutually supportive relationship between theWTO andtheWCO inthisregard.
Features oftheModel
Themodel provides ameans bywhich rights holders mayobtain Customs 'assistance tosuspend
clearance ofgoods suspected ofbeing counterfeit trademark goods orpirated copyright goods.IP/C/W/35
Page3
Itallows countries todecide iftheyshould provide suchmeans inrespect ofviolations ofother
IPRs, andwhether toextend suchprocedures tocover export andtransit, aswellasimport.
Itcontains theconditions governing applications forCustoms intervention, thegranting ofsuch
applications, andthemeasures tobetaken byCustoms. Italsocontains provisions regarding relations
between Customs, rights holders, importers andexporters, andtheprocedures fordisposal ofcounterfeit
trademark orpirated goods.
Themodel recognizes thatcountries might wishtoprovide ameans bywhich Customs can
takeex-officio action inrespect ofgoods which are,oraresuspected ofbeing, counterfeit, pirated,
orotherwise infringe anIPR.
TheCustoms roleisdefined asensuring thattheirintervention doesnothinder thesmooth
flowoftrade ingenuine goods, orcreate barriers tolegitimate trade. (This meets thebasic TRIPS
objectives ofensuring theavailability ofeffective enforcement measures, while safeguarding against
thecreation ofbarriers tolegitimate trade.)
Customs aretoassist intheenforcement ofIPRs, withtrademark andcopyright owners having
theprime responsibility fortaking measures toprotect theirrights -byregistering trademarks, and
notifying ownership ofthoserights. Themodel recognizes thattheextent ofCustoms resources available
forIPRenforcement willvaryfrom country tocountry.
Cooperation
Giving Customs thepower totackle IPRviolations attheborder iswelcomed bytheWCO.
However, nomatter howcarefully worded national legislation is,itisallrather irrelevant ifIPR
enforcement isineffective.
Customs 'effectiveness willbeenhanced through working withthefullassistance ofother law
enforcement agencies, andwiththebusiness community, inaprogramme ofjointcooperation. IPR
enforcement isamulti-agency responsibility which (likedrugs enforcement) combines frontier and
inland measures.
TheWCOisadvocatingthatCustoms/businesscooperationbeformalizedthroughtheconclusion
ofMemoranda ofUnderstanding (MOUs). Attheinternational level, theWCO hasconcluded IPR
MOUs withtheInternational Federation ofthePhonographic Industry (IFPI), andtheInternational
Chamber ofCommerce Commercial Crime Services (ICC CCS). Atthenational level, webelieve
thatonlyChina andGermany haveconcluded IPRMOUs. Drugs MOUs, however, havealready been
introduced in25countries.
WhyCooperate?
Customs lacksufficient expertise intheidentification ofcounterfeit andpirated goods, and
inthelatest modus operandi employed byinfringers. Business realizes that, withthegrowing
internationalizationofIPRfraud,itsincreaseinmagnitude,thesophisticationofinfringersanddifferences
innational laws, nosingle company cansuccessfully address theproblem inisolation.
TheWCO brings together representatives from theWTO andWIPO Secretariats, business
andCustoms services. Weaimtoexchange anddisseminate relevant information, leading tothe
increased accuracy ofriskassessment, targeting andinterception -skills which, inthedrugs area,have
already beenmastered bymost Customs services, butwhich nowneedtobeextended toIPRs.IP/C/W/35
Page4
Thisisparticularly important because itisbecoming increasingly clearthatthecriminals who
profit from IPRviolations (andwhoseeIPRfraud asproviding large profits atlittleornorisk)use
these profits tofundother illegal activities, particularly thetrafficking ofdrugs andinstruments of
terrorism -matters ofgrave concern toCustoms administrations.
Council Recommendation
InJune1994, theWCO Council adopted aRecommendation onIPR,which hasbeenformally
accepted bytheCustoms services ofCanada, France, NewZealand, theUnited Kingdom andtheUnited
States. Wehopethatmore Members willformally accept theRecommendation, which asksfor:
- anacknowledgement thatIPRenforcement isanimportant roleforCustoms;
- thesetting-up ofnecessary structures andprocedures toassist rights holders;
- theformulation ofCustoms legislation;
- thesharing ofinformation andtheprovision oftraining; and
- thedevelopment ofMOUs.
Technical Assistance
While model legislation andCouncil Recommendations areimportant, Customs alsoreally
needpractical help. So,wehavebegun aseries ofin-country andregional awareness andtraining
seminars. Customs inBelgium, China, Cyprus, Germany, Italy, Republic ofKorea, Malaysia,
theNetherlands, Poland andTurkey havebeentrained. Wehavealsoheldseminars inThailand (for
ASEAN countries) andinHong Kong (forthe22WCO Members intheAsiaandPacific region).
Wewillbuildonthisthrough theveryrecent exchange ofletters between theWCO andWIPO,
establishing closer cooperation between thetwoOrganizations.
Wehave identified 22business groups andcompanies whohave, collectively, donated
US$200,000 tofundavariety ofWCO activities relating toIPR. Wehaveestablished aWCO IPR
database, containing information provided bybothCustoms andbusiness (e.g.contact points, seizures
andintelligence, andproduct profiles). While access tothedatabase isavailable electronically, much
ofthisinformation isdisseminated inregular WCO Commercial Fraud Bulletins.
Wehaveagreed todonate computer equipment tosome ofthecountries visited, toenable them
toestablish acentral IPRunit,linked electronically totheWCO 'sdatabase, andcapable ofrecording,
analysing anddisseminating IPRdata. Such equipment hasbeeninstalled inChina, inthenewIPR
Enforcement Division which hasbeenestablished inCustoms Headquarters. Thecomputers willhelp
insetting upacentralized system for:
- thesubmission ofapplications forintervention (assuggested intheNotetoArticle 5
ofthemodel legislation); and
- therecording oftrademark owners andcopyright holders (assuggested inoneofthe
Notes toArticle 19).IP/C/W/35
Page5
TheFuture
TheWCO 'sIPRprogramme isrelatively new, andisdeveloping atarapid pace. With
142Members, agreatdealofworkremains tobedoneoverthenextfiveyears, asmany ofourMembers
prepare themselves forassuming theirnewrole.
Togiveusanideaofthetaskinhand, lastAutumn weasked Members totelluswhich transition
period applied tothem, andwhether ornottheyhadyetintroduced Customs IPRlegislation designed
toimplement theTRIPS border enforcement provisions.
38Members responded. 30indicated thattheirGovernments hadalready become Members
oftheWTO, sixthattheywereObservers, andtwothattheywere, currently, neither aMember nor
anObserver. 14ofthe16developed countries which, by1January 1996, hadtoimplement legislation
inlinewithTRIPS, haddone so.20developing countries hadfiveyears inwhich toimplement
legislation, twoleast-developed countries had11years.
Thequestionnaire responses alsorevealed theextent ofhelpneeded byWCO Members. Every
oneofthedeveloping andleast-developed countries which responded, asked fortraining:
EastandSouth Africa : Ethiopia, Madagascar andSwaziland.
North Africa, Near andMiddle East : Kuwait andTunisia
West andCentral Africa : Mauritania
Europe : Bulgaria,Cyprus,Italy,Lithuania,theFormer
Yugoslav Republic ofMacedonia, Romania,
Russian Federation, Spain, Turkey andthe
Ukraine
Americas : Colombia andMexico
FarEast, AsiaandPacific : Australia, Indonesia, Iran,Macao, Malaysia,
SriLanka andVietNam
Wevalue ourcloselinkswiththeWTO, WIPO andthebusiness community, andarecommitted
toproviding ourMembers (over thecoming years) withthetechnical assistance theyneed.