Counterfeit goods have become a major concern in global trade, leading to customs seizures, legal penalties, and financial losses for businesses. But what exactly qualifies as a counterfeit product? The definition is broader than many realize, and various factors can lead to a product being flagged as counterfeit by customs authorities.
What is a Counterfeit Product?
According to Baidu Encyclopedia, a counterfeit product is any item that imitates an international brand without official authorization. However, in practice, the definition extends to several categories:
1️⃣ Genuine Products Without Authorization
Even if the product is authentic, it may still be considered counterfeit if the seller does not have the necessary authorization from the brand owner.
Example: A company exports genuine Adidas shoes but lacks an official Adidas distribution license. This would still be classified as counterfeit.
2️⃣ Unauthorized Use of Brand Logos
If a company produces its own goods but prints a brand logo without permission, those items are counterfeit.
Example: A manufacturer produces sneakers but adds an Adidas logo—this is an obvious case of counterfeiting.
3️⃣ Slightly Altered Logos (“High Imitation” Products)
Some counterfeiters modify brand logos slightly to avoid detection, but these are still considered counterfeit products.
Example: A company sells sportswear with a logo that closely resembles Adidas but is spelled “Aididas.” This is a clear counterfeit.
4️⃣ Imitation of Product Design (Without Using the Brand Name)
Even if a product does not display a brand’s name or logo, copying a protected design can still be considered counterfeiting.
Example: A toy manufacturer exports plush toys that look exactly like Hello Kitty but do not carry the name “Hello Kitty.” Since the design is copyrighted, the product may still be seized as counterfeit.
5️⃣ Misleading Product Descriptions
Even if the product has no brand logos and does not resemble a brand-name product, using brand names in product descriptions can still lead to customs seizures.
Example: A company exports phone chargers and labels them as “iPhone 12 charger.” Even though no Apple logos appear on the product, customs may suspect it is a counterfeit Apple product.
Safer alternative: Labeling the product as “Charger for iPhone 12” reduces the risk of being flagged.
6️⃣ False Country of Origin Labels
Falsifying country of origin information is also considered counterfeiting, even if the product itself is unbranded.
Example: A company manufactures bags in China but prints “Made in Korea” on the labels. Even without a brand logo, customs will likely classify this as a counterfeit violation.
Avoiding Counterfeit Issues in International Trade
With stricter customs enforcement, businesses must be cautious when exporting products. To avoid delays, fines, and product seizures, companies should:
✔️ Obtain proper brand authorization before selling branded goods.
✔️ Avoid unauthorized use of brand logos or similar designs.
✔️ Be careful with product descriptions to prevent misleading branding.
✔️ Ensure correct labeling of country of origin to comply with regulations.
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