1. Intellectual Property Rights Top Commodities Seized: Mid-Year FY 2006 Published June 2006

2. Disclaimer The information contained on this page does not constitute the official trade statistics of the United States. The statistics, and the projections based upon those statistics, are not intended to be used for economic analysis, and are provided for the purpose of establishing CBP priorities and workload. 2 Executive Summary  The domestic value of goods seized for IPR violations at the mid-year point in FY 2006 increased by 3.4% to $45.7M from $44.2M at mid-year in FY 2005.  The number of IPR seizures increased by 72%, from 3,448 to 5,940.  China was the top trading partner for IPR seizures for this reporting period with a domestic value of $34.3M, accounting for 75% of the total value seized.  The seized value of Computers and Computer Hardware ($8M) is the highest in CBP history. China was the origin for $7M (88%) of the mid- year value.  Seized value of wearing apparel increased 25%, from $8M to $10M. The category continues to be the largest component of seized value. Chinese goods represent 61% of the mid-year value in this category.  Footwear seizures increased by more than $3.6M. Approximately 85% of the seizures contained 20 pairs of shoes or less. China was the origin for 89% of the seized value.

3. Disclaimer The information contained on this page does not constitute the official trade statistics of the United States. The statistics, and the projections based upon those statistics, are not intended to be used for economic analysis, and are provided for the purpose of establishing CBP priorities and workload. 3 TAB SECTION PAGE 1. Value and Number of Seizures ……………...……….4 2. Top Commodities Seized …..…………………………6 3. Top Trading Partners……………………………...….10 Table of Contents

4. Disclaimer The information contained on this page does not constitute the official trade statistics of the United States. The statistics, and the projections based upon those statistics, are not intended to be used for economic analysis, and are provided for the purpose of establishing CBP priorities and workload. 4 Value and Number of IPR Seizures Although the number of IPR seizures increased 72.3% from the same point in FY 2005 (from 3,448 in mid-year 2005, to 5,940 in mid-year 2006), the domestic value is only up by 3.4%.  The value of IPR seizures at the mid-year point in FY 2006 increased 3.4% (from $44.2 million to $45.7 million) compared to the mid-year point in FY 2005.  The number of IPR seizures with domestic values greater than or equal to $100,000 at the mid-year point in FY 2006 (93) is almost identical to FY 2005 (96). Intellectual Property Rights (IPR) is a Priority Trade Issue for CBP

5. Disclaimer The information contained on this page does not constitute the official trade statistics of the United States. The statistics, and the projections based upon those statistics, are not intended to be used for economic analysis, and are provided for the purpose of establishing CBP priorities and workload. 5 Intellectual Property Rights Seizures Total Value of IPR Seizures – Mid-Year FY 2006 vs. Mid-Year FY 2005 The value of IPR seizures increased 3.4% from mid-year 2005 to mid-year 2006.

6. Disclaimer The information contained on this page does not constitute the official trade statistics of the United States. The statistics, and the projections based upon those statistics, are not intended to be used for economic analysis, and are provided for the purpose of establishing CBP priorities and workload. 6 Top Commodities Seized Computers/Hardware seizures of $8M at mid-year FY06 are 1,142% higher than FY05’s $.6M mid-year total. The seized value of Computers and Computer Hardware ($8M) is the highest in CBP history. Approximately half of the value is due to infringing notebook computers, most of which were seized in Miami.  Wearing apparel represents the greatest value ($10M) of seized goods at mid-year.  The domestic value of IPR- infringing footwear seizures has increased 132% at mid-year, from $2.8M to $6.5M.  Media seizures ($4M) re-entered the Top 10, after dropping off the list in FY 2005.  Autos/Parts/Scooters and Perfumes/Colognes, which had made the Top 10 for the first time last year, dropped off in FY 2006. Computers/Hardware and Media seizures grew dramatically in FY06

7. Disclaimer The information contained on this page does not constitute the official trade statistics of the United States. The statistics, and the projections based upon those statistics, are not intended to be used for economic analysis, and are provided for the purpose of establishing CBP priorities and workload. 7 Top Commodities Seized Top Five Commodities Seized in Mid-Year FY 2006 The top 5 commodities seized for IPR violations accounted for 72% of the total domestic value of IPR goods seized at mid-year FY 2006.

8. Disclaimer The information contained on this page does not constitute the official trade statistics of the United States. The statistics, and the projections based upon those statistics, are not intended to be used for economic analysis, and are provided for the purpose of establishing CBP priorities and workload. 8 Top Commodities Seized Top Five Commodities Seized in Mid-Year FY 2005 The top 5 commodities seized for IPR violations accounted for 72% of the total domestic value of IPR goods seized at mid-year FY 2005. Wearing apparel accounted for the greatest value ($7.9 M)).

9. Disclaimer The information contained on this page does not constitute the official trade statistics of the United States. The statistics, and the projections based upon those statistics, are not intended to be used for economic analysis, and are provided for the purpose of establishing CBP priorities and workload. 9 Top Commodities Seized Percentage Increase/Decrease by Value – Mid-Year FY 2006 Several seizure categories are showing dramatic mid-year changes from FY05 to FY06. Computers/Hardware has already set a full-year record, Footwear and Pharmaceuticals seizures are up significantly, and Headwear enters the Top 10. In addition, Toys/Electronic Games/Trading Cards, Consumer Electronics and Handbags/Wallets/ Backpacks are showing notable decreases in seized value.

10. Disclaimer The information contained on this page does not constitute the official trade statistics of the United States. The statistics, and the projections based upon those statistics, are not intended to be used for economic analysis, and are provided for the purpose of establishing CBP priorities and workload. 10 Top Trading Partners During the first half of FY 2006 seizures of IPR infringing products from China totaled $34.3 million and accounted for 76% of the total domestic value for all IPR seizures. This is a 12% increase from FY 2005’s 64% mid-year share of IPR seizures.  Hong Kong’s $2.5M in seized value makes it the second most significant trading partner for IPR infringing seizures.  IPR seizures from Korea and Singapore have more than doubled in value at the mid-year mark, compared to mid-year FY 2005.  Korea has re-emerged on the Top 10 after a brief absence. Almost all of their value can be attributed to infringing wearing apparel. China remains the top trading partner for IPR violations

11. Disclaimer The information contained on this page does not constitute the official trade statistics of the United States. The statistics, and the projections based upon those statistics, are not intended to be used for economic analysis, and are provided for the purpose of establishing CBP priorities and workload. 11 Top Trading Partners Top Five Countries by Value for IPR Seizures – Mid-Year FY 2006

12. Disclaimer The information contained on this page does not constitute the official trade statistics of the United States. The statistics, and the projections based upon those statistics, are not intended to be used for economic analysis, and are provided for the purpose of establishing CBP priorities and workload. 12 Top Trading Partners Top Countries by Value for IPR Seizures – Mid-Year FY 2005

13. Disclaimer The information contained on this page does not constitute the official trade statistics of the United States. The statistics, and the projections based upon those statistics, are not intended to be used for economic analysis, and are provided for the purpose of establishing CBP priorities and workload. 13 Top Trading Partners Percentage Increase/Decrease by Value – Mid-Year FY 2006 The value of seizures from China increased 21% from mid-year FY05 to mid-year FY06. IPR seizures from Korea and Singapore more than doubled in value, moving them into the Top 5 from last year’s Top 10. The United Arab Emirates dropped off the Top 10 entirely, on a mid-year to mid-year comparison. Switzerland’s appearance on the list is due to watch seizures, which account for 98% of the value.