What do Panama, the Netherlands, Latvia, and Serbia have in common? A shipment of over 5,000 high-quality athletic sneakers travelled through these countries before being halted at customs over authenticity concerns.
The primary issue centred on potential trademark infringement due to suspicions that the goods might be counterfeit. Customs officials raised concerns because some labels, tags, and QR codes on the sneakers were damaged. As a result, the goods were detained in several ports, and the importer was compelled to prove their authenticity each time.
Initially, the exporter declined to assist, citing that the shipment was conducted under the ExWorks Incoterms clause. However, the importer contended that even with ExWorks, the exporter is still obligated to ensure the goods and accompanying documents are in order.
Since the containers were sealed at the exporter’s warehouse, it was quickly determined that the exporter was responsible for the non-conformity of the goods. This realisation altered the dynamics between the parties involved, prompting the exporter to provide additional documents and guarantees. Eventually, the full chain of title was established, confirming the authenticity of the goods, which led to their release.
The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.
By Goran Radosevic, Partner, and Nikola Kliska, Senior Associate, Karanovic & Partners