DHS targets warehouses to combat counterfeits

Domestic fulfillment centers and online third-party marketplaces have emerged as key distribution points for counterfeit or illicit goods entering the U.S., according to a report proposing targeted regulatory changes released by the Department of Homeland Security Friday. DHS will pursue new regulations enabling Customs and Border Protection (CBP) to, "treat domestic warehouses and fulfillment centers as the ultimate consignee for any good that has not been sold to a specific consumer at the time of its importation." Facilities owners would be responsible for proactively notifying CBP, complying with CBP orders and destroying such goods, if found. Noncompliance could trigger legal action. The report also recommends establishing private sector best practices, sharing resources, third-party seller identification standards and requiring country of origin labels for products sold online (currently only mandated for items sold in physical stores) to improve detection of counterfeit items before they're sold.