Meaning
Proactive detention of cargo by customs officers happens when an inspection reveals goods that appear to violate an intellectual property right recorded in the national database. An ex-officio customs hold represents the primary mechanism for state-led border enforcement without an external request from the trademark owner. Officials use their own authority to pause the export or import process to verify the authenticity of the shipment.
Proactive Search
Inspectors examine shipping containers and documentation for mismatches. When an ex-officio customs hold is initiated, the goods are moved to a secure warehouse.
Notification Chain
Customs must inform the intellectual property owner within three working days that a suspicious shipment has been identified. If the owner wishes to pursue the ex-officio customs hold, they must provide a written application and a bond to secure the potential damages of the importer. Failure to respond within the narrow timeframe results in the automatic release of the cargo.
Disposal Power
Following a formal finding of infringement, the General Administration of Customs has the right to confiscate and destroy the illegal items. The costs associated with storage and destruction under an ex-officio customs hold fall upon the infringing party or the security bond provided by the right holder. Any remaining funds from the bond are returned to the owner after the case is closed.
