Pre Litigation Asset Preservation and Tooling Repossession Mechanics under PRC Law
Pre-litigation preservation under Article 104 freezes factory tooling within 48 hours using surety bonds, securing physical assets before formal litigation.
Injection Mould Custody
Meaning
Bailment arrangements in cross-border manufacturing govern the physical control, maintenance and operational security of customer-owned tooling located inside third-party production facilities. Managed through injection mould custody, the legal and physical possession of specialized tooling is held by a contract manufacturer subject to strict contractual restrictions on usage, modification and relocation. This relationship governs production tooling, stamping dies and custom fixtures, terminating upon return of the physical asset to the owner or transfer to a designated successor plant.
Custodial Obligation
Administrative duties imposed on the holding plant require maintaining the tool in operational condition while preventing unauthorized production runs. Within an injection mould custody agreement, the holding factory acts as a bailee responsible for routine maintenance, secure storage and protection against asset destruction. Unauthorized third-party usage or unapproved replication of the tooling constitutes a breach of contract and intellectual property infringement under Chinese law.
Asset Identification
Clear physical markings and engraved ownership plates affixed to the tool body establish legal ownership against factory creditors. Unmarked tooling residing on a factory floor risks seizure during court enforcement actions against the manufacturer.
Recovery Procedure
Repossession of physical tooling during commercial disputes depends on clear contractual termination terms combined with registered bailment documentation. When an injection mould custody arrangement ends due to contract expiration or supplier breach, the owner holds a legal right to retrieve the asset from the facility. Local administrative authorities and courts will assist in recovering tagged tooling provided that ownership certificates and asset registers match the physical equipment found on site.
Supplier resistance during retrieval operations often necessitates court-ordered asset preservation or police assistance to prevent unlawful retention.