DHS agencies fight uphill battle against counterfeiting

Homeland Security Department agencies have staffs that are too small and too burdened with enforcing immigration policy and investigating terrorism to effectively confront the growing counterfeit goods market, lawmakers and private sector officials said Wednesday.

The multibillion-dollar industry, which produces fakes ranging from high-end designer handbags to the commonplace surge protector, has been growing at a pace beyond the ability of investigators and enforcers to fight, private sector officials said at a Senate Finance Committee hearing. In addition, the sheer volume of shipping containers entering ports on a daily basis is so great that thorough checks are impossible.

"I understand you can't check two million containers, every container," said Brian Monks, director of Underwriters Laboratories' anti-counterfeiting division. "But criminals know that, too."

Agencies face several challenges as they try to screen against illegal immigrants, weapons and counterfeit goods.

A Treasury Department official testified that information collection and analysis efforts often are duplicative.

"Agencies do not necessarily have access to information that other agencies collect, or have the benefit of knowing what enforcement or regulatory actions other agencies have taken in response to that information," said Timothy Skud, Treasury's deputy assistant secretary for tax, trade and tariff policy.

But while committee chairman Sen. Charles Grassley, R-Iowa, told government officials that the country's "trade enforcement needs are not being fully met," Immigration and Customs Enforcement Assistant Secretary Julie Myers told lawmakers her agency has already nabbed more money's worth in fake goods in fiscal 2006 than it did the previous year.

And as lawmakers tried to redirect funds toward staffing shortages, Customs and Border Protection officials asserted that the bureau is in the process of filling its ranks.

CBP is seeking 111 more workers to serve in a variety of capacities, said Jay Ahern, the agency's acting customs commissioner.

Still, Ahern acknowledged, "we're not where we're supposed to be under the Homeland Security Act [of 2002]."

Jerry Cook, vice president of Sara Lee-branded apparel, praised CBP for its efforts to build the Automated Commercial Environment system, which is aimed at better coordinating customs data.

"CBP has done the major work in building this program and bringing other agencies to the table," he said, "but the other government agencies have not delivered their portion of the needed product."

Some of lawmakers' harshest criticisms were not directed at American officials protecting trade and borders, but at Chinese officials, for allegedly failing to fully cooperate with U.S. inspectors.

Sen. Max Baucus, D-Mont., the committee's ranking Democrat, accused Chinese officials of keeping pertinent documents in a "black box" and hampering CBP efforts.