Retailers alerted to surge in trade for counterfeit goods
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In Singapore and other parts of South East Asia, there has at least been a minimal market for counterfeit goods. Retailers across the region have wrangled with this issue for many years and today, it shows little sign of waning.
Statistics for 2016 revealed that, worldwide, the market for counterfeit goods worldwide was worth an astonishing $650bn (US$460bn). Many of these products were sold online to customers the world over, with popular items sold including eyeglasses, electronics and designer footwear. Bargain-hunting consumers may find the price outweighs whether or not what they buy is genuine.
Local trade
The range of fake goods finding their way at customs is pretty wide. Aside from luxury items such as jewellery and smartphones, everyday items bearing counterfeited brand names including rice, noodles and chocolate are also sold as the genuine article. Singapore, as a major global port, sees a fair few of said goods reach customs.
In September 2016, Singapore Customs seized over 5,000 bags of counterfeit rice imported from India. That same month, more than 1,300 wallets, bags and purses were confiscated. Both bore trademarks of brands which local authorities deemed to be illegal, highlighting the need for retailers to be wary of what they buy in from suppliers.
When determining what is real and what is fake, Singapore Customs do a lot of the work, whether through performing checks at airport terminals and ports or by enforcing the Trade Marks Act. However, retailers are also tasked with staying on-side, whether selling products online or offline in the bustling streets and markets.
Telling real from fake
Retailers are advised to read the Trade Marks Act. Introduced in 1998 and revised in 2005, it states that it is illegal for traders to sell any products bearing un-trademarked logos or other forms of branding. Inspecting goods thoroughly is a must before buying; a good way of doing this is to compare a fully-trademarked product against one that has been offered for sale.
“In September 2016, Singapore Customs seized over 5,000 bags of counterfeit rice imported from India.”
Any differences in fonts, brand names, colours and materials should be easy to spot. If there are any signs that a product offered by a wholesaler is fake, it is recommended to contact local customs and turn down those products. This should be done regardless of whether or not they seem to represent value for money.
Should any business find itself selling counterfeit goods, knowingly or otherwise, there are grave consequences. Hefty fines are often given per fake item sold, reaching as much as $10,000 per item. In such an instance, legal advice from local firms including Withers LLP is advisable, whether it’s before or after buying fake goods.
Multiple sources
Many counterfeit goods sold across Asia find their way onto online marketplaces such as Amazon, AliBaba and eBay. Retailers using these channels to sell their products are advised to take precautions to ensure what they sell on said sites are the real thing. AliBaba account holders are advised to register with AliProtect.
Whether they come from China, India, Europe or within Singapore, the market for fake goods shows no sign of slowing down. Attempts by governments and online retailers to clamp down on them are improving, though.
Questions & Answers
Q.What was the estimated global value of the counterfeit goods market in 2016?
What was the estimated global value of the counterfeit goods market in 2016?
In 2016, the worldwide market for counterfeit goods was estimated to be worth an astonishing $650bn (US$460bn). Many of these products were sold online, with popular items including eyeglasses and designer footwear.
Q.What types of goods, beyond luxury items, are being counterfeited and sold as genuine?
What types of goods, beyond luxury items, are being counterfeited and sold as genuine?
Beyond luxury items like jewellery and smartphones, everyday items such as rice, noodles, and chocolate are also being sold with counterfeited brand names. Singapore Customs seized over 5,000 bags of fake rice in September 2016.
Q.What is the advice for retailers on identifying counterfeit products from wholesalers?
What is the advice for retailers on identifying counterfeit products from wholesalers?
Retailers should inspect goods thoroughly, comparing them to fully-trademarked products for differences in fonts, brand names, colours, and materials. If signs of fakes are present, contact local customs and refuse the products.
Q.What are the potential penalties for businesses found to be selling counterfeit items?
What are the potential penalties for businesses found to be selling counterfeit items?
Businesses found selling counterfeit goods, even unknowingly, can face grave consequences. Hefty fines are often given per fake item sold, sometimes reaching as much as $10,000 per item.
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