Australian Customs authorities have impounded a consignment of unauthorised Woolmark labels manufactured in China and destined for an Australian Woolmark licensee - making this the third fraudulent or misuse of the Woolmark in the last three months.

The Customs Officers were alerted by both the poor quality of the labels and the errors that they contained.

Under the terms of the Woolmark licence agreement, all ticket and label designs must be checked and approved by The Woolmark Company before production can begin. Any licensee who fails to adhere to the rules set out in the licence agreement will have his licence withdrawn.

The seized labels will be destroyed at the Australian importer's expense.