Meaning
Measured against the declared customs value of detained cargo and potential patent infringement damages, financial mechanisms allow exporters to secure the release of goods seized by Chinese Customs. An export seizure counter-bond is available exclusively in disputes involving patent rights, where an exporter posts a cash security equal to the value of the detained goods. General Administration of Customs regulations permit this financial countermeasure to prevent severe supply chain disruption while judicial or administrative claims remain unresolved.
The counter-bond mechanism does not apply to trademark or copyright infringement seizures.
Financial Guarantee
Exporters must submit the counter-bond directly to local customs authorities within twenty working days of receiving a detention notice. The financial deposit guarantees funds to satisfy potential civil judgments if the patent holder subsequently proves infringement in court.
Customs Release
Upon verifying the full counter-bond deposit, customs officers clear the detained shipment for international export. This release prevents port storage fees and supply chain delays. Patent holders must initiate formal civil litigation within thirty days of cargo release to maintain their underlying legal action.
Liability Limitation
Posting financial security does not constitute an admission of patent infringement by the manufacturer. If the patent holder fails to initiate court proceedings within statutory deadlines, customs returns the full counter-bond deposit to the exporting party. Prevailing exporters recover legal costs and storage expenses from the initiating rights holder when courts find no patent infringement occurred.
The posting of financial security ensures export operations continue uninterrupted during judicial evaluations.
