Chinese Customs Protection

Recordation System

Registration of intellectual property rights with the central customs authority is the first step in establishing a defensive perimeter against the trade in counterfeit goods. Chinese customs protection requires the submission of a formal application that includes the name of the right holder, a copy of the trademark or patent certificate, and examples of genuine packaging. The recordation remains valid for ten years or until the underlying right expires, and it can be renewed for subsequent ten year periods.

Once a right is recorded, it is visible to customs offices at every port of entry and exit across the nation. This visibility is vital because it allows frontline officers to cross reference the information in shipping manifests with the details of the protected designs. Right holders are encouraged to provide training to customs staff to help them distinguish between authentic products and high quality fakes.

This training often includes the identification of specific security labels, batch numbers, and common shipping routes used by infringers.

Detention Procedure

Action is taken by the authorities when a shipment is suspected of containing goods that infringe upon a recorded right. Chinese customs protection provides two paths for the detention of goods, one initiated by the customs office and another requested by the right holder. When customs discovers a suspicious cargo, they notify the right holder, who then has three working days to confirm if the goods are infringing and to provide a bond as security for the detention.

The bond covers potential losses to the exporter if the goods are later found to be non infringing. If the right holder confirms the infringement, customs will conduct a formal investigation, which usually takes around thirty days. During this time, the goods are held in a secure warehouse at the port.

If the investigation concludes that the goods are indeed counterfeit, they are confiscated and usually destroyed, although they may sometimes be donated to charity after the infringing marks are removed.

Enforcement Outcome

Successful detention and confiscation of infringing goods serve as a powerful deterrent to manufacturers and exporters of counterfeit products. Chinese customs protection results in a formal administrative penalty for the infringing party, which can include heavy fines and the loss of their export license. The general administration of customs also maintains a blacklist of companies that have been caught multiple times, subjecting their future shipments to more frequent and rigorous inspections.

For the right holder, the destruction of the counterfeit goods prevents them from entering the market and damaging the brand reputation or causing safety risks to consumers. Information gathered during the customs investigation, such as the names of the suppliers and the destination of the goods, can be used to initiate further legal action in civil or criminal courts. This integrated approach to border enforcement is a key component of the broader national strategy to improve the business environment for innovative companies.

The system provides a predictable and effective way to manage the risks of international trade.