Meaning
Financial collateral provided by a respondent enables the release of detained cargo while a legal dispute remains unresolved. An administrative counter-bond functions as a security deposit paid to General Administration of Customs to allow the flow of goods to resume. It prevents the permanent seizure of shipments when an alleged infringer disputes the claim of the right holder.
Release Mechanism
The procedure for applying this security involves submitting a formal request and the required funds to the local customs house. Authorities permit the importer to take possession of the goods despite the pending investigation if the administrative counter-bond is accepted. Legal custody of the cargo ends once the financial deposit is secured.
Calculation Metric
Customs officials determine the amount of the deposit based on the value of the goods and the potential damages cited by the right holder.
Dispute Resolution
Final disposition of the funds depends on the outcome of the intellectual property investigation or subsequent court ruling. Should the trademark owner fail to file a lawsuit within the statutory period, the administrative counter-bond is returned to the payer in full. Conversely, a finding of infringement leads to the forfeiture of the security to cover fines or compensation.
The administrative counter-bond remains held by the state until a final certificate of non-infringement or a settlement agreement is produced. Payment of the bond does not constitute an admission of guilt by the importing party.
