Customs on intellectual property violation

In response to an increasing number of goods confiscated by Customs for intellectual property right infringement, Legal Daily reports that Customs has issued an announcement detailing regulations on manufacturers of goods destined for export addressing intellectual property infringement issues:

1. Manufacturers are now responsible for checking on intellectual property rights before accepting an order. If Customs determines that manufacturers have infringed intellectual property rights, the goods will be confiscated and the manufacturing company will be fined. Moreover, the manufacturer will be criminally liable for the infringement.

2. Customs will impose obstacles for companies known to violate intellectual property rules. Customs ranks manufacturers from grades A through D. A company with grade A has no history of intellectual property infringement and goods produced by an A-rated company will be rapidly cleared through customs. However, should Customs discover three instances of intellectual property infringement in a single year, an A-rated company can be immediately downgraded to D-grade and face substantial delays in the clearance of their goods for export.

Source: (Chinese)

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