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[Reporter’s Notebook] Customs Documents Disguised as "Certificates of Authenticity"

Import Declaration Certificate Used to Sell Counterfeits
No System in Place to Certify Authenticity of Parallel Imports
E-commerce Platforms Must Strengthen Counterfeit Monitoring

[Reporter’s Notebook] Customs Documents Disguised as "Certificates of Authenticity" A partial screenshot of a post uploaded by a seller on one platform. After showing an image of the import declaration certificate, it is introduced as 100% genuine.

"These are 100% genuine products that have undergone official import customs clearance procedures. You can purchase them with confidence."


During a recent interview, a consumer shared that he trusted this statement and purchased five 'Ami' T-shirts, which were parallel imports, from a men's fashion platform. The official retail price for a single T-shirt from this brand was as high as 300,000 won, but he believed he was getting a genuine product at a much lower price and proceeded with the payment. However, after having the T-shirts appraised by a resale platform, it turned out they were counterfeit.


The reason this consumer believed the products were genuine was the 'import declaration certificate.' Most consumers who attempt overseas direct purchases believe that an import declaration certificate guarantees a product is 100% genuine and proceed to buy. However, this is a misconception. An import declaration certificate is simply a document proving that customs duties and value-added taxes have been paid and the goods have cleared customs. In other words, it is merely administrative evidence that the product was not illegally imported.


Customs authorities do not directly verify the authenticity of products. Each year, approximately 182 million direct purchase items enter Korea-about 15.2 million per month, or 500,000 per day. It is impossible for customs to open and inspect every small package. Only if a brand requests a block on suspicious items in advance will customs randomly open packages, and even then, unless customs suspects a violation of intellectual property rights, most items pass through. This means that an import declaration certificate does not prove authenticity.


Nevertheless, the phrase "imported goods that have cleared official customs procedures" has somehow been transformed into a "certificate of authenticity." This is not limited to certain platforms such as small fashion malls. It can also be frequently seen on major e-commerce platforms like Naver and Coupang.


In Korea, there is no system to certify the authenticity of parallel imports. Parallel imports refer to products brought in from overseas by third parties who do not hold the brand license as official importers. Typically, parallel importers purchase in bulk locally and sell at lower prices than the official domestic retail price, which benefits consumers. However, brand owners do not officially verify the authenticity of parallel imports, considering their contracts with official importers. Exploiting this loophole, counterfeit distributors use import declaration certificates to openly distribute fake products.


The only way to block counterfeit parallel imports is to implement a thorough verification system throughout the distribution process. Artificial intelligence (AI) technology capable of detecting counterfeits online has already been developed. However, many e-commerce platforms hesitate to take action against sellers even when counterfeits are reported using such technology, citing the inability to confirm whether the products are fake. E-commerce platforms must rigorously monitor for counterfeits and take strict measures against illegal sellers. If platforms continue to neglect counterfeit sellers as they do now, regulations mandating platforms to block counterfeit products will become inevitable.


© The Asia Business Daily(www.asiae.co.kr). All rights reserved.

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