Meaning
Statutory frameworks governing cross-border trade empower border officers to seize counterfeit products before they leave the country. Under the prc customs ip regulations, brand owners can register their trademarks with the central government to enable proactive monitoring of outbound shipments. This registration creates an active defense against the export of fake goods.
Border Enforcement
Officers inspect suspicious shipments and detain any products that appear to infringe on registered intellectual property. This detention triggers an automatic notification to the trademark owner, who must confirm the infringement and provide a bond. If the owner confirms the infringement, the customs office launches a formal investigation.
Bond Requirement
The intellectual property holder must submit a financial bond to cover the costs of warehousing and any potential damages to the exporter if the goods are legitimate. This bond can be a specific amount per shipment or a general bond covering multiple shipments. Providing this financial security is necessary to keep the goods detained during the investigation.
If the investigation reveals no infringement, the bond is returned to the applicant after deducting any expenses incurred during the detention period.
Administrative Action
If the goods are found to be counterfeit, the customs authority confiscates them and imposes a fine on the exporter. These confiscated products are often donated to charity, recycled, or destroyed to prevent them from entering the market. This enforcement acts as a deterrent to companies involved in the trade of counterfeit items.