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COAC's IPR Group Reiterates Prior Recommendations as Work Comes to Close

As the Commercial Customs Operations Advisory Committee winds down amid CBP's plans to restructure the format to realign COAC with CBP's focus on national security, the protection and promotion of domestic industry, and the closure of “revenue and enforcement gaps” caused by unfair trade practices (see 2507010077), the Intellectual Property Rights Process Modernization Working Group within COAC's Intelligent Enforcement Subcommittee urged CBP to continue to protect intellectual property rights.

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While the IPR process modernization working group had no specific recommendations for CBP ahead of COAC's Sept. 17 meeting, it laid out the following objectives in a white paper:

1. A single automated system: The working group previously recommended that CBP automate the agency’s detention and seizure process by pairing ACE and SEACATS (Seized Asset Case Tracking System), so that the two can function together as a single automated system to address all CBP enforcement priorities.

2. A unique identifier: The working group previously recommended that as a part of an automated system, CBP establish and adopt the use of a unique identifier as a reference number for IPR enforcement actions. A unique identifier, which is not subject to the restrictions of the Trade Secrets Act, could serve as a single reference point for all interested parties throughout the administrative enforcement process. Use of a unique identifier throughout various CBP enforcement actions, including detentions, seizures, liquidated damages, and penalty actions may promote greater communication and broader automation of administrative enforcement processes.

3. A portal to serve as an enhancement to ACE: The IPR working group previously recommended that CBP develop a “Portal” as an enhancement to ACE to allow for direct and confidential communications between CBP and interested parties such as rights holders, importers, shippers, and others impacted by CBP enforcement actions, even those at the detention stage. Such a Portal may be particularly useful in helping drive compliance for non-traditional and small U.S. businesses that import infrequently.

4. Parallel imports: The working group previously recommended that CBP develop a voluntary program for establishing trusted known businesses that import parallel goods and/or used/recycled goods. Such a program could incorporate standards that could be used to demonstrate whether parallel and used/recycled goods being imported are genuine.

5. Alternatives to seizure: The working group previously recommended that CBP continue to develop policies that support alternatives to seizure that are permissible under CBP regulations, such as the manipulation and abandonment of detained goods, while maintaining information and statistics concerning such actions. Alternatives to seizure may decrease costs for the trade and CBP while still ensuring the potentially infringing goods do not enter the U.S. stream of commerce.