Changes in the UK customs procedures
HM Revenue and Customs (HMRC) has revised the procedures which it has in place in connection with pirated or counterfeit goods. These changes place a higher burden on the rights holder.
Previously, HMRC would detain goods that were potentially counterfeit and inform the rights holder. The rights holder would then have a period of ten working days to examine the goods; if it confirmed by way of a witness statement that the goods were counterfeit, HMRC would destroy the goods, unless the importer sought to rebut the allegations.
However, the burden of proof has now shifted to the rights holder. Whilst HMRC will detain goods that it believes to be potentially counterfeit and will still inform the rights holder, the rights holder must commence legal proceedings.
In addition, such proceedings must be instigated within ten working days from the date of notification by HMRC informing the rights holder it has seized potentially counterfeit goods. For HMRC to detain the offending goods for longer than ten working days, the rights holder must either reach an agreement with the owner of the goods or, alternatively, request a ten working day extension of time. The time period for which HMRC will detain the goods will not exceed twenty working days unless court proceedings are issued. In relation to perishable goods, the period of time within which court proceedings must be issued is three working days; this cannot be extended.
If legal proceedings are not taken and/or the rights holder is not successful, then the goods will be released. Where the rights holder obtains judgement in its favour, destruction of the infringing goods must now by carried out at the expense and under the responsibility of the rights holder, whereas previously HMRC would destroy such goods.
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