WRITTEN QUESTION E-1124/01

by Francesco Speroni (TDI) to the Commission

(6 April 2001)

Subject: Unfair competition to the detriment of Italian SMUs as the result of irregular import practices by third countries

For some time the Trieste customs office has been receiving reports of goods arriving from China, Pakistan and Taiwan already marked Made in Italy. These goods are intended for the Italian market and consist for the most part of cutlery, scissors and surgical instruments.

Although for the purposes of globalisation the countries belonging to the WTO are required to phase out countervailing duties, at the same time Council Regulation (EC) No 241/1999(1) amending Regulation (EC) No 3295/94(2) introduces new measures to prohibit the release of counterfeit and pirated goods. In these circumstances, does the Commission not believe that that situation is evidence of unfair competition against small and medium-sized undertakings?

In order to prevent that situation, does the Commission believe it advisable to introduce a requirement that the mark of origin be stamped directly on the goods (by mechanical stamping or laser) as, moreover, occurs in the case of exports to the USA, in order to combat these activities?

(1) OJ L 27, 2.2.1999, p. 1.

(2) OJ L 341, 30.12.1994, p. 8.

Answer given by Mr Bolkestein on behalf of the Commission

(13 June 2001)

Various measures have been taken to protect intellectual property on the Community market from imports of counterfeit or pirated goods. Council Regulation (EC) No 241/1999 of 25 January 1999 amending Regulation (EC) No 3295/94 laying down measures to prohibit the release for free circulation, export, re-export or entry for a suspensive procedure of counterfeit and pirated goods introduces new types of rights to be protected and extends protection to include any goods of third-country origin which are under customs supervision. However, this Regulation does not cover the notion of false declarations of origin in any way.

More precisely, the aforesaid Regulation prohibits the entry, release for free circulation, export, re-export, placing under a suspensive procedure or placing in a free zone or free warehouse of counterfeit or pirated goods or goods infringing a patent or supplementary protection certificate. The fact that goods may be illegally marked Made in Italy does not constitute an act of counterfeiting or piracy within the meaning of this Regulation even if the purpose of the mark is to evade certain customs duties or to mislead the consumer in his choice of goods.

As regards marks of origin, no Community system yet exists and the rules governing marks of origin on goods marketed in the Community are determined by the legislation of the Member States. Consequently, national authorities must handle false marks of origin on the basis of their own legislation.

With regard to the suggestion made by the Honourable Member that the stamping of goods with the name of their country of origin be made obligatory, the Commission has not yet found any consensus on this question within Community industry. To comply with the rules of the World Trade Organisation, any such measure would have to apply both to imported products and to goods produced in the Community.

European producers have instruments at their disposal enabling them to protect certain geographical designations and to inform consumers about the Community trade mark

on their products (Council Regulation (EC) 40/94 of 20 December 1993 on the Community trade mark(1) and Council Directive 89/109/EEC of 21 December 1988 on the approximation of the laws of the Member States relating to materials and articles intended to come into contact with foodstuffs(2)).

(1) OJ L 11, 14.1.1994.

(2) OJ L 40, 11.2.1989.