Procter & Gamble Protects its Supply Chain Using CBP Donations Program to Prevent Entry of Counterfeit Products

U.S. Customs and Border Protection (CBP) has partnered with Procter and Gamble (P&G) in a limited program to prevent the entry of counterfeit P&G products. The partnership leverages CBP’s Donations Acceptance Program (DAP), which was originally authorized by the Homeland Security Act of 2002 and  updated in the Trade Facilitation and Trade Enforcement Act of 2015, authorizing private donations to support CBP’s IPR enforcement operations. The DAP allows CBP to accept property, money, and nonpersonal services for use at U.S. Ports of Entry to enhance existing operations.

The partnership between CBP and P&G represents the first use of the DAP for enhancing intellectual property rights (IPR) enforcement operations. P&G will donate testing equipment to CBP’s Office of Field Operations to assist in determining the authenticity of P&G products, which include many common household products. P&G has also expressed interest in establishing a long-term arrangement where they will resupply and, if necessary, upgrade donated testing devices to CBP as its detection needs evolve.

The Donations Acceptance Program is one initiative to assist CBP’s IPR enforcement operations. To enhance overall IPR enforcement, CBP has:

  • Issued civil fines as a deterrence.
  • Conducted post-import audits of companies caught with IPR violations.
  • Collaborated with trading partners and partnered with industry and other agencies to enhance IPR enforcement efforts.
  • Developed the e-Recordation system to record company trademarks and copyrights with CBP.
  • Developed the e-Allegations system to make it easier for the Private Sector to notify CBP of potential IPR violations.

​CBP has made the enforcement of IPR a priority trade issue. CBP selects priority trade issues based on a trade issue’s risk for causing significant revenue loss, harm the U.S. economy, or threaten the health and safety of the American people. CBP has determined that counterfeit products represent an economic risk to the United States, as every sale of counterfeit goods impacts legitimate company revenue which overtime translates to lost profits and a reduction in U.S. Jobs. Additionally, CBP has stated that counterfeit goods present health and safety risk because they are often made using low quality materials. Accordingly, CBP has seized an increasing number of counterfeit pharmaceuticals, personal care, and consumer electronics.  

In FY16, CBP’s IPR enforcement resulted in 31,560 seizures with total MSRP value of $1.38 billion. 8% of seizure products were pharmaceuticals and personal care. Of all seizures in FY16, 52% originated from China, followed by 36% from Hong Kong. 

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