Meaning
Statutory remedy executed by a local people court in China allowing a foreign-invested enterprise or a domestic partner to take physical possession of industrial moulds owned by a delinquent supplier. Tooling seizure enforcement operates under the Civil Procedure Law of China alongside judicial interpretations issued by the Supreme People Court, granting creditors a compulsory execution mechanism when a manufacturing contractor withholds production equipment after a contract terminates. Jurisdiction rests exclusively with the basic people court located where the industrial moulds are situated or where the debtor maintains its principal place of business, restricting out-of-district seizures unless a formal cross-regional enforcement commission is established between judicial districts.
The statutory boundary ends at the factory gate of the defendant, prohibiting the seizing party from forcibly removing moulds from third-party sub-contractors without initiating separate supplementary execution proceedings against those distinct entities.
Creditor Burden
Local enforcement officers require comprehensive documentary proof establishing proprietary rights over the industrial equipment before executing a physical seizure order. Claimants must submit the original manufacturing agreement containing explicit provisions regarding equipment bailment, alongside photographic inventories and asset registration certificates stamped by the local tax bureau. Bailment agreements written exclusively in a foreign language without a certified Chinese translation are summarily rejected by judicial enforcement officers during the preliminary docket review.
Documentary verification protects the issuing court from subsequent third-party ownership claims lodged by distressed local banks holding floating charges over the manufacturing floor.
Asset Custody
Physical possession transferred through judicial seizure creates immediate obligations for the executing creditor regarding storage and facility maintenance. Local courts contract certified third-party warehousing agents to transport the industrial moulds from the recalcitrant supplier premises to a secure holding facility. Storage costs accumulate daily against the seizing party during the mandatory preservation period, which lasts until the auction process concludes or the underlying debt is fully satisfied.
Maintenance protocols demand specialized climate-controlled environments to prevent moisture corrosion on precision steel cavity blocks during extended legal disputes.
Auction Procedure
Unclaimed production apparatus undergoes public liquidation through judicial online platforms authorized by the provincial high people court. Valuation committees comprising certified asset appraisers assess the fair market worth of the seized equipment based on residual steel composition and remaining production cycles. Reserve prices established during the initial auction block drop by a statutory margin if no qualified bidders register deposits before the bidding window closes.
Proceeds recovered from the final transaction are remitted directly to the court escrow account for distribution to the priority creditor after deducting statutory execution fees and warehousing expenses.
