Meaning
Administrative regulations issued by the State Council govern the border enforcement of intellectual property rights by customs authorities. This specific decree, known as order 213, grants customs officers the power to detain import and export shipments suspected of infringing patents, trademarks, or copyrights. It establishes the legal framework for intellectual property filings at the border.
Right holders use these procedures to block counterfeit goods from leaving or entering the country.
Customs Enforcement
Border enforcement is triggered when customs agents discover suspicious cargo during routine inspections or upon receipt of a specific petition from an intellectual property owner. Under order 213, customs offices can initiate investigations and hold the goods at the port of exit. This preventive action protects the rights of intellectual property holders.
Border Detention
Detaining suspicious shipments requires the right holder to submit a formal application and provide a security deposit to cover potential losses of the exporter if the goods are later found to be non-infringing. Within the context of order 213, the security deposit must equal the value of the detained goods. Customs then investigates the shipment and determines whether infringement has occurred.
If the investigation confirms the infringement, the goods are confiscated, and the exporter faces administrative fines. If no infringement is found, the goods are released, and the deposit is used to compensate the exporter.
Security Deposit
Financial guarantees must be posted by the intellectual property holder to initiate the detention of suspect cargo. The provisions of order 213 dictate that the security deposit secures the exporter against unjustified delays or losses. This mechanism prevents malicious detention by competitors.
