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Counterfeit Pharmaceutical Growth Poses Risk to U.S. Consumers, Says Committee Witnesses

Transnational criminals are exploiting the lack of formal entry processes at courier facilities to smuggle counterfeit pharmaceutical drugs into the U.S., said Lev Kubiak, director of Immigration and Customs Enforcement's National Intellectual Property Rights Coordination Center, at a Feb. 27 hearing of the House Committee on Energy and Commerce Subcommittee on Oversight and Investigations. The center teams with CBP to target counterfeit merchandise and pirated works, but prioritizes health and safety and the military supply chain due to limited resources, said Kubiak in written testimony (here).

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“While ocean-crossing shipping containers are necessary to move bulk quantities of counterfeit items such as handbags, shoes, batteries or holiday lights, other high value items, including counterfeit pharmaceuticals, are being smuggled in smaller quantities through mail and/or express courier parcels,” said Kubiak at the hearing titled Counterfeit Drugs: Fighting Illegal Supply Chains. “ICE is working closely in tandem with CBP to improve targeting, information sharing, and adopting best practices to ensure that our limited resources are focused on finding the most egregious violators.”

There are an estimated 36,000 internet pharmacies that sell counterfeit pharmaceutical drugs globally, said witness Marcia Crosse, director of health care at the Government Accountability Office, according to a committee press release. “Many illegally ship prescription drugs into the United States that have not been approved by the Food and Drug Administration, including drugs that are counterfeit or are otherwise substandard,” said Crosse. “Foreign rogue Internet pharmacies use sophisticated methods to evade scrutiny by customs officials and smuggle drugs into the country. Their operations also often violate other laws, including those related to fraud and money laundering. Rogue Internet pharmacies are often complex, global operations, and federal agencies face substantial challenges investigating and prosecuting those involved.”