China customs enforcement of intellectual property rights

China’s General Administration of Customs (GACC) has the authority to enforce Intellectual Property (IP) rights at the border. IP rights holders can register their rights in GACC’s IP protection system, and it will inspect imported and exported goods either on its own (ex officio), or at the request of IP rights holders if they suspect infringement. 

The IP rights that can be enforced by GACC are:

• registered trademarks
• copyrights
• patent rights

Note that, while registration of copyright in China is voluntary, copyright holders first need to register their copyright in China before they can register it with GACC. 

To assist GACC in identifying infringement, IP rights holders can provide information about their products. This could include:

• where in China they produce
• names of manufacturers
• names of importers and exporters
• information on known infringers

If goods are suspected of infringing a registered IP right, GACC notifies the rights holder, who then must then submit a protection application and a guarantee (bond). GACC holds the goods during the  investigation; if infringement is confirmed, it confiscates the goods and may impose fines.

If infringement is not confirmed, the goods are released.

Licensed IP rights can also be registered with GACC if certain requirements are fulfilled. For a licensee to apply for IP registration with GACC, the applicant must:

• hold a valid license agreement for the IP in China
• ensure that the license is registered with the China National Intellectual Property Administration (CNIPA)
• have explicit authorization from the IP owner to register the IP with GACC

IP rights holders should consider registering their IP rights with GACC. There is no fee to register, and the process is fairly simple and quick. Step-by-step instructions are available in the IP section of GACC’s website. Once registered with GACC, your information should be updated regularly to maitain accuracy.

Foreign IP rights holders without a presence in China cannot register directly and must use a China-based representative to do so. 

It is important to respond promptly to any allegations of infringement or detention of goods. – Since different GACC offices may have varying deadlines, there is no standard timeline It is also highly recommended that you work with qualified professional counsel to address any allegations of infringement.

Companies sourcing or manufacturing in China for export should also consider registering their IP with GACC, even if they do not sell their products in the Chinese market. This helps avoid the potential for their goods to be detained at the border.