Meaning
Administrative customs regulations govern the declaration, inspection, and release of intellectual property and machinery crossing the borders of the People’s Republic of China. The General Administration of Customs Decree 213 provides the legal mechanism for customs officials to seize goods that violate registered trademark, patent, or copyright laws. This regulation is used by foreign brand owners to prevent counterfeit goods from leaving the country.
Regulatory Scope
The decree establishes a national registry where rights holders can record their intellectual property assets with customs authorities. This registration allows border officers to proactively inspect shipments and detain suspicious cargo. When a potential violation is detected, customs officials notify the rights holder to confirm the infringement.
This proactive measure prevents unauthorized exports.
Border Enforcement
If a shipment is detained, the exporter must provide proof of authorization or face confiscation and fines. Customs officers have the authority to hold the goods while the legal status is investigated. This process can cause significant delays for the exporter, even if the goods are eventually cleared.
It provides a powerful tool for brand protection.
Supply Chain Impact
Importers sourcing manufactured goods from China must ensure that their suppliers are authorized to export the branded items to avoid customs delays. The decree’s enforcement mechanisms can disrupt supply chains if the supplier fails to obtain the correct export permits. Importers should verify that their trademark licenses are properly registered with Chinese customs before placing large orders.
This step ensures that shipments will pass through the export terminals without administrative delays. If a dispute arises, the lack of a proper customs filing can result in the seizure and destruction of the entire shipment. Thus, compliance is a vital component of risk management.
