1. AFTA Parallel (Gray) Market Basics for CBP The challenge to Release Genuine Branded Goods and Stop Counterfeits May 6, 2016 American Free Trade Association www.aftaus.com

2. AFTA What is AFTA?  A not-for-profit trade association of independent American importers, distributors, retailers and wholesalers.  Member companies typically distribute fragrance products, alcoholic beverages, cosmetics, health and beauty aids.  Operating in the United States for 30+ years Dedicated to preservation of the parallel market to assure competitive pricing and distribution of genuine and legitimate brand-name goods for American consumers. 2 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved

3. AFTA AFTA members: Comply with CBP Rules & Regulations Depend on Integrity of Products Avoid or Report Counterfeiting goods through In-House Protocols and Procedures Support Account-Based, Known Importer, Low-Risk IPR Assessments Work with trusted suppliers and vetted distribution Partners Provide American Consumers with Competitive, Safe, Genuine Branded Merchandise Work with CBP, Congress and other Federal Agencies to stop Counterfeiting while Preserving Brand Name Competition 3 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved Working with AFTA Members and other Third Party Importers of Genuine, Parallel Imports Facilitates CBP’s Trade Objective

4. AFTA AFTA and CBP Fight Against Importation and Distribution of Counterfeit Goods AFTA has actively opposed counterfeiting and counterfeiters and has supported legislation and rulemaking focused on eradicating all forms of this illicit trade. 4 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved

5. AFTA Defining the Legal Parallel (Gray) Market: Genuine and Unrestricted The Battle to Control Downstream Distribution and pricing of Brand Name products The Role of CBP Facilitate lawful trade in a war zone Enforce Gray Market and Lever-Rule Restrictions Enforce ITC Exclusion Orders Identify and seize “Counterfeit”, “Piratical” and “Infringing” goods Protect Importer Information while Working with Rights Holders Enforce Other Agency requirements A Vision for the Future Parallel Market IORs as Accounts and members of CEE’s Enhanced Detention Decision-making Private Sector Educational programs for CBP IPR Known Importer Program Improved Registration and Recordation information 5 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved What will this Webinar Cover?

6. AFTA Gray market goods as “genuinely branded merchandise distinguished only by their sale through channels unauthorized by the trademark owner.” L.P. Bucklin, “Modeling the International Gray Market for Public Policy Decisions,” International Journal of Research in Marketing 10 (1993): 387–405, 387. The goods appear to be, and in most cases are, physically identical in every way, including their trademarks. Therefore, price is the major difference.” J. Cross, J. Stephans, and R.E. Benjamin, “Gray Markets: A Legal Review and Public Policy Perspective,” Journal of Public Policy and Marketing 9 (1990): 183–194, 183. 6 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved

7. AFTA  Market Segmentation  Pricing Differential  Currency Fluctuations  Brand Owner’s Distribution Partner Breaches Contractual Restrictive Covenants 7 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved Why do “Gray Markets” Exist in the First Place  Brand Owner authorizes sales that result in excess inventory that must be sold off to “meet the numbers” and/or to ensure sales prior to product expiration or otherwise becomes obsolete  Products Manufactured For Export Never Leave U.S.

8. AFTA Why are there Imports of Parallel Market Goods? Global Trade Arbitrage 8 Arbitrage/ Restricted Distribution The Sale/Distribution of Genuine Branded Goods Outside Their Authorized Chain of Distribution American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved

9. AFTA Impetus for Gray Market Transaction Impact on CBP’s IPR Border Enforcement Strategy Market Segmentation  Brand Owner Proprietary Selective Distribution Strategy  No Impact on CBP’s Determination of Product Authenticity  CBP Not Responsible for Tracking Effectiveness of Private Distribution Protocols Pricing Differentials  Brand Owner Selective Global Pricing Strategy  No Impact on CBP’s Determination of Product Authenticity  CBP Not Responsible for Enabling Maximum Corporate Profits Currency Fluctuations  Consequence of Global Market Performance  No Impact on CBP’s Determination of Product Authenticity  CBP Not Responsible for Ensuring Stability of U.S. Dollar 9 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved

10. AFTA Impetus for Gray Market Transaction Impact on CBP’s IPR Border Enforcement Strategy Excess Inventory Resales To Comply with Minimum Sales Obligations or to Ensure Distribution Prior to Product Expiration/Obsolescence  Supplier Inventory Challenge  No impact on CBP’s Determination of Product Authenticity  CBP Not Responsible for Monitoring Brand Owner’s Distribution Partners’ Sales  CBP May Wish to Examine Expiration Dates for Consumable/Pharmaceutical Product Viability and Integrity Contractual Violations  Symptom of Ineffective Enforcement of Private Contractual Provisions  No impact on CBP’s Determination of Product Authenticity  CBP Not Responsible for Enforcement of Private Contracts For-Export Merchandise Never Leaves U.S.  No impact on CBP’s Determination of Product Authenticity  May Constitute Fraud or Other Commercial Trading Violations 10 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved

11. AFTA 11 Where’s the High Priced Market? American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved

12. AFTA A Few Retailers A Few IP Owners Brand Owners and Major Retailers all Fight Counterfeits – Fight each other on Genuine Goods American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved 12

13. AFTA to Costco (2010) to Wiley (2012) To Quality King (1998) to K-Mart/Cartier (1988 ) to Lever Brothers (1989) Litigation American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved 13 Apollinaris (1886) To Lexmark (2016)

14. AFTA 14 Legislation American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved

15. AFTA 15 CBP is not the Only Decision-Maker American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved

16. AFTA 16 Public Opinion American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved

17. AFTA Decision-Making in a War Zone Is it Genuine or Counterfeit? 17 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved Unauthorized Retailers/ Distributors BrandOwners CBP

18. AFTA How can CBP be satisfied a product is a Genuine Parallel Import and not Counterfeit? 18 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved

19. AFTA Made in the USA and Reimported Identical to Like Product Currently on Retail Shelves Passes Look/Feel/Smell Test Could be in last year’s packaging Exporter unlikely to be Included in Right’s Holder Recordation Information Papertrail back to manufacturer often unavailable Information not publicly available (i.e., factory/facility registration numbers, production dates, etc.) not known Laboratory testing validates Subject to Importer’s Quality Control and verification processes in addition to those practiced by the manufacturer at time of production Importer has its own track/trace/coding system for purposes of recall Importer may file a Request for Manipulation to Ensure Compliance Prior to Entry Importer works closely with CBP to avoid disclosure of proprietary trade secrets to competing brand owner 19 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved Inspect the Goods and the Transaction Documents Some Characteristics of Genuine Parallel Imports Consult with Importer and/or Right Holder Before Importation/ During Detention/Seizure

20. AFTA Some Stuff for Lawyers: Here are some Statutes & Regs (The Limited Role of CBP) Customs Law (Tariff Act Section 526 19 CFR 133.21-22) Trademark Law (Lanham Act Sections 42, 32(a) and 43(a)) Copyright Law (17 USC 602 – 19 CFR 133.42) Patent Law, Unfair Trade and Lever Rule (Tariff Act section 337) 20 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved

21. AFTA 21 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved Why a Customs Law and a Trademark Law? Congress Acts Faster than the Courts: Bourjois v. Katzel 1921: Second Circuit found no Lanham infringement because branded product was genuine September, 1922: Congress Adopts Genuine Goods Exclusion (Tariff Act 1922, Section 526) to prevent Second Circuit results in the future January, 1923: Supreme Court Reverses Second Circuit Lanham Act Decision

22. AFTA 22 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved Lanham Act Section 42 of the Lanham Trademark Act of 1946 prohibits the importation of goods bearing trademarks that "copy or simulate" trademarks registered in the United States.

23. AFTA Customs Regulations of 1931, Article 513(a). Prohibition of entry. 23 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved Section 526 Implementing Regulations Entry is prohibited of imported merchandise bearing a genuine trade-mark when such trade-mark is recorded with the Treasury Department and registered under the trade-mark law of February 20, 1905, if compliance is had with all provisions of section 526 of the tariff act of 1930, provided the period of protection for such trade-mark has not expired. Without the U.S. trademark owner's consent, all goods, even with "genuine" marks, were barred.

24. AFTA 24 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved Section 27 of the Trademark Act Implementing Regulations Birth of the “Common Control Exception” Imported goods were no longer subject to either the trademark or customs law prohibition in the absence of the trademark owner's consent "if such foreign trade-mark... and such United States trade-mark... are owned by the same person, partnership, association, or corporation."

25. AFTA K Mart Corp. v. Cartier, Inc. The United States Supreme Court confirmed that the Customs Service could allow entry into the United States of gray-market imports where the foreign manufacturer and domestic trademark owner are subject to common control. 19 CFR 133.2(d) 25 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved K Mart Corp. v. Cartier, Inc. (1) Common ownership means individual or aggregate ownership of more than 50 percent of the business entity; and (2) Common control means effective control in policy and operations and is not necessarily synonymous with common ownership

26. AFTA Gray Market Importation Restricted 26 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved

27. AFTA §133.2 Application to record trademark. (**note: registered copyrights may also be recorded) An application shall include the following information: (a) The name, complete business address, and citizenship of the trademark owner or owners; (b) The places of manufacture of goods bearing the recorded trademark; (c) The name and principal business address of each foreign person or business entity authorized or licensed to use the trademark and a statement as to the use authorized; and (d) The identity of any parent or subsidiary company or other foreign company under common ownership or control which uses the trademark abroad. Recordation does not permit brand owners to designate authorized importers to distinguish from parallel importers If the U.S. Trademark Owner is not under common control or ownership with the owner of the mark outside of the United States, CBP will restrict gray market imports Brand owners may elect NOT to provide CBP with information identifying authorized supply chain partners to facilitate CBP’s sharing of entry information for/about each and every shipment – This is an unfortunate waste of CBP resources and leads to unnecessary entry delays 27 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved

28. AFTA 28 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved Physical and Material Differences Lever Bros. Co. v. United States, 981 F.2d 1330, 1338 (D.C. Cir. 1993) The existence of common ownership or control does not preclude CBP prohibiting entry of genuine parallel imports provided that (1)the mark is federally registered, (2)the trademark owner records the mark with CBP, and (3)the imported goods are physically and materially different from those authorized for domestic sale

29. AFTA 19 C.F.R. § 133.2(e) 29 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved The “Lever Rule” Trademark Owners can apply to CBP for “Lever Rule” protection to restrict gray market imports

30. AFTA 30 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved The “Lever Rule” Applied

31. AFTA The application must include a description of any physical and material difference between the specific articles authorized for importation or sale in the United States and those not so authorized. 31 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved Trademark Owners Must Apply to CBP for Lever Rule Protection Against Gray Market Imports Physical and material differences may include: (1) The specific composition of both the authorized and gray market product(s) (including chemical composition); (2) Formulation, product construction, structure, or composite product components, of both the authorized and gray market product; (3) Performance and/or operational characteristics of both the authorized and gray market product; (4) Differences resulting from legal or regulatory requirements, certification, etc.; (5) Other distinguishing and explicitly defined factors that would likely result in consumer deception or confusion as proscribed under applicable law.

32. AFTA Goods determined by the Customs Service to be entitled to Lever Rule protection will not be detained if a conspicuous and legible label is affixed to dispel any consumer confusion This product is not a product authorized by the United States trademark owner for importation and is physically and materially different from the authorized product 32 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved The “Lever Rule”

33. AFTA 33 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved Lever-Rule Importation Restricted

34. AFTA Importations are prohibited…..17 USC Section 602 (a) Infringing Importation or Exportation.— (1) Importation.— Importation into the United States, without the authority of the owner of copyright under this title, of copies or phonorecords of a work that have been acquired outside the United States is an infringement of the exclusive right to distribute copies or phonorecords under section 106, actionable under section 501. But Owners of Copies are free to sell to anyone……17 USC Section 109(a) Notwithstanding the provisions of section 106(3), the owner of a particular copy or phonorecord lawfully made under this title, or any person authorized by such owner, is entitled, without the authority of the copyright owner, to sell or otherwise dispose of the possession of that copy or phonorecord Copyright Owners Control (1) Production of copies and (2) distribution, limited to (“THE FIRST SALE”) 34 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved Copyright Law

35. AFTA Maintaining A Balanced, Competitive Domestic Marketplace Depends Upon Confidentiality and Protection of Proprietary Supply Chain Information 35 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved Avoiding Disclosures to “Competitors”

36. AFTA 36 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved The Unredacted Sample Concern

37. AFTA Custody Receipt/Notice of Detention* Opportunity to present evidence for release Notice of Seizure identifying alleged violation and CBP-assessed “domestic value” Election of Proceedings: Administrative, Judicial, Abandonment If Administrative petition rights (Petition for Early Release, Petition for Release, and Supplemental Petition for Release if unfavorable result). IPR Audits CBP Enforcement Process American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved 37

38. AFTA During 30 days detention period, importer must establish that: The trademark or trade name was applied under the authority of a foreign trademark or trade name owner who is the same as the U.S. owner, a parent or subsidiary of the U.S. owner, or a party otherwise subject to common ownership or control with the U.S. owner. That the merchandise as imported is not physically and materially different. Where goods are detained for violation of Sec. 133.23(a)(3), as physically and materially different from the articles authorized by the U.S. trademark owner for importation or sale in the U.S., a label in compliance with Sec. 133.23(b) is applied to the goods. Restricted Gray Market Detention 38 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved

39. AFTA At Detention: (1) The date of importation; (2) The port of entry; (3) A description of the merchandise; (4) The quantity involved; and (5) The country of origin of the merchandise (6) Images/Samples to Importers and Rights Holder Plus at Seizure: (7) Manufacturer, Exporter and Importer names and addresses Detention/ Seizure Disclosures 39 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved

40. AFTA  Once CBP detains merchandise that it suspects bears counterfeit marks, it will issue a detention notice to the importer within five business days.  CBP’s detention notice starts a seven-day period within which the importer may demonstrate that the goods do not bear a counterfeit mark before CBP will release any unredacted product samples to the rights owner  The importer may receive an unredacted product sample/image at any time to assist with its verification of authenticity  Customs Reauthorization Section 231: Any Changes? 40 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved The 7-Day Rule 19 CFR 137.21(b), effective October 19, 2015

41. AFTA 41 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved Source: CBP Presentation - IPO 2004 Annual Meeting, Sept. 12-14, 2004

42. AFTA 42 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved CBP Must Disclose Certain Information to the Brand Owner Immediately and Must Disclose Additional Information if Goods are Ultimately Seized But…  There is Little Incentive for Rights Holders to Facilitate Entry/Distribution of Competing Goods  If Rights Holder does not communicate with CBP in timely manner, CBP ultimately must make determination to seize or release  If Rights Holder does not communicate with CBP in timely manner leading CBP to further detain or seize the shipment, there is no just recourse for the importer  It is important to do everything possible to protect proprietary supply chain information – providing unredacted product samples and entry information necessarily compromises the rights of the U.S. importer  Meaningful Dialog with the Importer is the Best Use of Limited CBP Resources

43. AFTA Import documentation Product/Packaging Coding and Labeling Microscopic visibility Ultraviolet visibility CBP Training on Goods CBP Training on Advanced Detection Machinery But what really determines whether a good is genuine? 43 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved Detection Methods

44. AFTA Are goods moving in unauthorized supply chains Compliant with Requirements of FDA, USDA, CPSC, EPA, DOT, et.al Will CBP be caught in the middle? Will CBP work with PGA’s to assure compliance and facilitate trade As it did for non-Conforming vehicles 19 CFR 12.73(d) TD 88-40 44 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved A Word About Other Agencies

45. AFTA 45 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved Are Reconditioned/Refurbished Goods Counterfeit? “And we would not suppose that one could be enjoined from selling a [used] car whose valves had been reground and whose piston rings had been replaced unless he removed the name Ford or Chevrolet.” Justice Douglas, Champion Spark Plug Co. v. Sanders, 331 U.S. 125 (1947)

46. AFTA CBP Enforcement Process 337 Exclusion Orders 46 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved

47. AFTA The CBP vision for trade A swift flow of legitimate imports entering the U.S. marketplace, free from harm to the U.S. economy and consumers 47 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved

48. AFTA  Parallel Market IORs as Accounts and members of CEE’s  Enhanced Detention Decision-making  Private Sector Educational programs for CBP  IPR Known Importer Program  Improved Registration and Recordation information 48 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved A Vision for the Future

49. AFTA 49 American Free Trade Association For additional information, please contact Lee Sandler, Esq. (lsandler@strtrade.com) or Lauren V. Perez (lauren@lvpsolutionsllc.com) | ©2016. American Free Trade Association. All Rights Reserved