CBP Mulling Numeric ID Platform for IPR, Will Test in Feb.
CBP is considering establishing a numeric identifiers platform as a way to cut down on intellectual property rights (IPR) violations and allow the agency to better target and authenticate products, said agency officials and members of the trade industry during the Dec. 4 Advisory Committee on Commercial Operations (COAC) meeting. The agency is looking to pilot the program first, and the IPR COAC subcommittee continues to work with the agency to develop the program. The identifier platform is part of a distribution chain management program effort meant to reduce IPR inspections and holds for participants in the program.
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Numeric Identifier Platform
CBP posted some information about the program within materials for the COAC meeting. "CBP and [the IPR] Subcommittee members are developing a pilot program of the Numeric Identifier platform for February 2013 at the Southern Border," said CBP's report for the COAC meeting. "The Numeric Identifier platform is based on importer submission of a unique identifier provided by the right holder that identifies a shipment as authentic." The CBP report is (here). Participation within the platform will allow "for submission of a numeric identifier on an individual product, or an aggregation of individual products, such as a pallet or container, or at the entry level, said the trade report on COAC initiatives. "The Numeric Identifier will have a passport-like function allowing CBP to target or authenticate the product and its numeric identifier through a right-holder maintained database. " The trade report is (here).
CBP would initially like to test the numeric identifier platform in the express environment, said Therese Randazzo, director of IPR Policy and Programs in CBP's Office of International Trade. The growth of e-commerce has meant a huge increase to the number of counterfeit and pirated goods sent through express carrier mail, she said. The identifier would be applied either directly to parcels or submitted to CBP, potentially as part of Simplified Entry, to identify shipments from authorized websites, she said. "This would improve our ability to segment risk," she said.
CBP and the IPR subcommittee "continue to assess the business case and value for CBP as well as the trade in changing current processes and the cost associated with implementing and maintaining" the initiative, said Scott Childers, a member of the COAC and senior manage of integrated trade management at the Walt Disney Company.
EAA Seeks Harmonized Government Data
It remains uncertain what exactly the new pilot will entail and it will be important that the private sector be heavily involved in the process, said Mike Mullen, executive director of the Express Association of America. "Both rights holders and carriers need to be brought into the conversation to explore the feasibility of numeric identifiers," he said by email. "The express industry feels strongly that if the government is considering requiring any additional data elements to verify the accuracy of a description of the goods in a shipment, that effort needs to be harmonized across all the government agencies with an interest in product safety and combating counterfeits. The government needs to agree on a single solution in order to minimize the significant programming expenses such a change entails, both for the public and private sectors." Mullen said he planned to discuss the plans with CBP as part of routine meetings with the express industry in the coming year.
CBP Also Reviewing IPR Issues for Refurbished Goods
The IPR subcommittee has also started discussion on the enforcement of IPR laws on refurbished goods, said CBP's Randazzo. "We've taken this issue on in response to challenges identified by rights holders, CBP ports of entry and the Electronic Center for Excellence and Expertise," she said. "The challenge we are having is determining if a refurbished or remanufactured product remains an authentic product or is it so substantially changed to now become a counterfeit product.