▍ An Overview of Customs Recordal of Chinese Intellectual Property

This article provides an overview of customs recordal for intellectual property in China. It covers the benefits of the proceeding, tips, and tricks and the distinctions compared to the other jurisdiction, which we believe would be of interest and value to the companies or individual engaged in importing and exporting business in China.

1. What is Customs Recordal of intellectual property?

Customs Recordal of intellectual property refers to the system where intellectual property rights owners apply to the General Administration of Customs to record their intellectual property rights in order to seek protection from Customs according to the provisions of the Regulations of the People's Republic of China on the Customs Protection of Intellectual Property Rights.

2. What are the benefits of Customs Recordal of intellectual property?

First of all, it helps Customs to identify infringing goods. Intellectual property rights owners need to provide information about the legal status of their intellectual property rights, the contact information of the rights owners, legal use of intellectual property, relevant images, etc. when applying for recordal. This makes it possible for Customs to discover suspected infringing goods during its daily supervision and take the initiative to detain them.

Secondly, it can reduce the economic burden of intellectual property rights owners. According to the Implementation Measures of the General Administration of Customs on the Regulations of the People's Republic of China on the Customs Protection of Intellectual Property Rights, under the protection mode by Customs' official authority, the highest guarantee provided by intellectual property rights owners to Customs does not exceed RMB 100,000. If intellectual property rights owners have not recorded their intellectual property rights in advance, they must provide a guarantee equal to the value of the goods they request to detain.

Finally, it can have a deterrent effect on infringers. Since Customs seizes infringing goods and imposes administrative penalties on import and export enterprises, recording intellectual property rights as soon as possible can serve as a warning and deterrent to enterprises that have previously imported and exported infringing goods without any concerns.

3. What are the characteristics of Chinese Customs protection of intellectual property rights compared with those of other countries?

Customs plays an important role in safeguarding the security of domestic and foreign goods and travelers as well as ensuring tax security, and the protection of intellectual property is an especially important part of its responsibilities. However, due to differences in political and economic conditions among different countries, there are certain differences in the measures taken by Customs to protect intellectual property. The main characteristics of Chinese Customs intellectual property protection are as follows:

• Customs not only protects trademark and copyright but also enforces patent protection.
  
• Protection is implemented at both import and export stages. In addition to prohibiting infringing goods from entering China, Chinese Customs also takes measures to prohibit the export of infringing goods from China.
  
• Customs seizes all goods that have been investigated and confirmed to have infringed intellectual property rights, and they are not allowed to enter or leave the country.
  

4. What should the right holder do after receiving the notification of confirmation of rights from Customs?

According to Article 16 of the Regulations of the People's Republic of China on Customs Protection of Intellectual Property Rights, within three working days from the date of receipt of the Notification of Confirmation of Intellectual Property Status, the intellectual property rights holder shall apply and provide security in accordance with the provisions of these Regulations.

The customs shall lawfully detain the suspected infringing goods, notify the intellectual property rights holder in writing, and deliver the customs detention voucher to the consignee or the consignor. If the intellectual property rights holder fails to apply or provide security within the time limit, the customs shall not detain the goods.

5. Precautions when applying for Customs Recordal of intellectual property rights.

● What?

The types of intellectual property eligible for Chinese Customs Recordal include Chinese registered trademark, patent and copyright.

● Who?

Only the intellectual property rights holder can apply to the General Administration of Customs for intellectual property rights recordation. It should be noted that overseas intellectual property rights holders should apply through their offices established in China or authorized agents in China.

● When?

The General Administration of Customs will make a decision to approve or reject the application within 30 working days from the date of submission of the recordation application. Regarding the rejection of the application by the General Administration of Customs, the rights holder may modify the application content and resubmit it based on the reasons for rejection.

● How Long？

Customs Recordal becomes effective from the date of approval by the General Administration of Customs and is valid for 10 years. If the validity period of the intellectual property right is less than 10 years from the date of recordal, the validity period of the recordal shall be based on the validity period of the intellectual property right.

● Renewable?

Within six months before the expiration of the validity period of Customs Recordal of intellectual property rights, the intellectual property rights holder may submit a written application to the General Administration of Customs for renewal of the recordation and submit relevant documents.

6. Conclusion

In conclusion, Customs Recordal for intellectual property in China can be a valuable tool for companies and individuals involved in importing and exporting business in China. By following the tips and tricks outlined in this article and understanding the benefits and differences from other jurisdictions, businesses can better protect their intellectual property rights and minimize the risk of infringement or being infringed by others.