VZCZCXRO6269
RR RUEHCN RUEHGH
DE RUEHGZ #1191/01 1930913
ZNR UUUUU ZZH
R 120913Z JUL 06
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC 4533
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUCPDOC/USDOC WASHDC
RUEAIIA/CIA WASHDC
RUEKJCS/DIA WASHDC
RUEAWJA/DOJ WASHDC
RHHMUNA/HQ USPACOM HONOLULU HI

UNCLAS SECTION 01 OF 03 GUANGZHOU 021191 
 
SIPDIS 
 
COMMERCE FOR NATIONAL COORDINATOR FOR IPR ENFORCEMENT- 
CISRAEL 
COMMERCE FOR DAS LEVINE 
COMMERCE FOR MAC 3204/ACELICO, LRIGOLI, ESZYMANSKI 
STATE FOR EB/TPP AREIAS, ACETO, MASSINGA; EB/IPE - EFELSING 
USPTO FOR JDUDAS, TBROWNING, SANTHONY, LBOLAND 
USTR FOR CHINA OFFICE-AWINTER; OCG-SMCCOY; IPR OFFICE- 
VESPINEL 
DHS/CPP FOR PIZZECK 
LOC/COPYRIGHT OFFICE-STEPP 
DOJ FOR CCIPS-ASHARRIN 
FBI FOR LBRYANT 
DHS/ICE FOR IPR CENTER-DFAULCONER 
DHS/CBP FOR IPR RIGHTS BRANCH-PPIZZECK 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: KIPR ETRD ECON WTRO CH
SUBJECT: South China IPR: Product Identification Seminar 
Brings Together U.S. Industry and Guangdong Customs 
 
REFERENCE: Guangzhou 20753 
 
(U) This document is sensitive but unclassified.  Please 
protect accordingly. 
 
¶1. (U) Summary: Post recently organized a seminar at which 
representatives from eight U.S. companies and industry 
associations trained 96 working-level officials from 
Guangdong Customs on how to distinguish genuine products 
from counterfeits.  The companies' representatives used 
Powerpoint presentations, product samples, and paper 
handouts to illustrate their products, including labeling 
and packaging, and to highlight characteristics of 
counterfeits.  Guangdong Customs employs 40 percent of all 
of China's Customs officials and the province accounts for 
one-third of China's exports.  End summary. 
 
U.S. Industry and Guangdong Customs Participants 
--------------------------------------------- --- 
 
¶2. (U) Attending on the U.S. side were representatives from 
Nike, Proctor and Gamble, Disney, Mattel, Acushnet (which 
owns the Titleist brand), Cleveland Golf, General Motors, 
and the Motion Picture Association.  Some of the 
representatives traveled from Hong Kong for the event.  Each 
of them spoke for approximately 30 minutes. 
 
¶3. (U) Attending on the Chinese side were 96 Guangdong 
Customs officers, representing all seven Customs 
jurisdictions in Guangdong.  Guangdong Customs officials 
account for 40 percent of all of Customs officials in China, 
according to the director of the training center.  Most of 
the officers in attendance were at the rank of office 
manager and thus closely involved in day-to-day enforcement 
activities.  Most were attentive throughout the seminar and 
took notes.  Following the event, Guangdong Customs invited 
all industry and Customs participants, as well as Econoff 
and EconPolAssts, to dinner at the training center 
cafeteria. 
 
The Customs Training Center 
--------------------------- 
 
¶4. (U) The seminar took place on July 6 at the China Customs 
Education and Training Center, located in the outskirts of 
Guangzhou.  The training center serves all of South China 
and is one of three such facilities in China, the other two 
being in Shanghai and Beijing.  It provides training at all 
levels of Customs and consists of several large buildings as 
well as dormitories for visiting trainees. 
 
Part of a Mandated IPR Training Course 
-------------------------------------- 
 
¶5. (U) The seminar was coordinated to be part of a three-and- 
a-half day IPR training course for Guangdong Customs 
officials, which was mandated by China Customs in its 2006 
action plan.  The course includes sessions with Macau 
Customs, the Hong Kong trademark office, the Guangdong 
Administration of Industry and Commerce, the Guangdong High 
Court, and the dean of the Sun Yat-Sen University school of 
law. 
 
Presentations: How to Spot Fakes 
-------------------------------- 
 
¶6. (U) Most of the industry representatives began their 
presentations with background on their companies, including 
the brands they own and products they manufacture.  They 
included photographs of the products, and details of the 
 
GUANGZHOU 00021191  002 OF 003 
 
 
labeling and packaging, in their Powerpoint presentations. 
The representatives also showed photographs of seized 
counterfeit products and discussed their identifying 
characteristics.  Some presenters disclosed where the 
counterfeit products were manufactured and their export 
destinations.  Some also brought samples of legitimate and 
counterfeit products for the officials to handle.  All of 
them left a copy of their Powerpoint presentation with the 
training center and also distributed paper handouts with 
product and anti-counterfeiting information to each 
participant.  They also provided the officials with contact 
information and encouraged the officials to contact them if 
they discover a suspect shipment or have questions about a 
particular product. 
 
¶7. (U) During a question and answer period following the 
presentations, only one Chinese official asked to speak.  He 
noted that Customs regulations now forbid the auction of 
seized goods, and as a result the cash reward program for 
informants lacks sufficient funding.  Some of the 
representatives said their companies have reward programs, 
which could perhaps be coordinated with Customs.  In 
addition, they mentioned that China's Public Security Bureau 
(PSB) offers cash rewards to informants in IPR cases. 
 
Third Time's a Charm 
-------------------- 
 
¶8. (SBU) Post's first two attempts to organize a product 
identification seminar were not successful.  In March 2006, 
Post proposed such a seminar to the Guangdong Intellectual 
Property Office, which coordinates IP issues among the 
numerous agencies that handle IPR.  We requested that 
enforcement officials from various IP enforcement agencies 
attend the seminar.  Guangdong IPO did not move forward with 
the proposal, or a follow-up one in April, on the grounds 
that the relevant agencies were too busy.  Post then decided 
to target only one agency, Guangdong Customs, in order to 
simplify the approval process and establish a more direct 
line of communication. 
 
Comment: Customs -- Cooperative on IPR 
-------------------------------------- 
 
¶9. (SBU) Throughout the planning stage for this event, 
Guangdong Customs was cooperative and responsive.  For 
instance, they did not wait for central-level approval 
(which came only one week prior to the event) before 
beginning arrangements.  This stands in contrast to other 
South China IPR enforcement agencies, some of which have 
declined recent requests for meetings (reftel).  The only 
significant condition set by Customs was not to include 
"discussion" time in the event, as it would require another 
set of approvals.  Nevertheless, they encouraged Customs 
participants to ask questions and were also willing to bring 
industry representatives and Customs officials together at 
the dinner following the event. 
 
¶10. (SBU) It is encouraging that working-level Guangdong 
Customs officials are required to complete more than three 
days of training on IPR -- and that similar courses have 
taken place in past years.  Guangdong province is 
responsible for one-third of China overall trade and is an 
engine of China's manufacturing industry -- as well as the 
"heart of darkness" for IPR infringement.  The export of 
counterfeit products to global markets is a growing concern 
for U.S. companies.  Guangdong Customs, with its reputation 
for being well-trained and its significance in terms of 
size, will likely remain an important partner in Post's anti- 
counterfeiting advocacy and training efforts. 
 
GUANGZHOU 00021191  003 OF 003 
 
 
 
MARTIN