Article 21 The proprietor shall provide necessary assistance if customs offices decide to investigate goods detained for suspicion of infringing upon intellectual property rights.

Article 22 Customs offices shall release goods detained for suspicion of infringing upon intellectual property rights should any of the following cases occur in the goods in question:

(1) Clearance of suspicion of right infringement by customs offices or departments in charge of intellectual property rights after investigation;

(2) Judgment or ruling by people's courts to clear the goods of right infringement;

(3) Failure by the parties involved to raise lawsuits with people's courts within prescribed periods of fine, refusal by people's courts to accept the cases, or failure by people's courts to reach rulings on property risks;

(4) Failure on the part of the proprietor to respond within prescribed periods of time or abandonment by the proprietor of customs protection of intellectual property rights.

Article 23 Goods detained for suspicion of right infringement shall be confiscated by customs offices if they are confirmed by customs offices, departments in charge of intellectual property rights or people's courts to have infringed upon intellectual property rights.

Article 24 Customs offices shall dispose goods confiscated for infringing upon intellectual property rights according to different cases and in line with the following stipulations:

(1) Destruction of goods that have infringed upon copyrights;

(2) Destruction of goods that have infringed upon trademark licenses in case the infringed trademarks cannot be removed, and removal of the infringed trademarks if these infringed trade marks can be removed and the goods in question can be utilized. These goods shall be only used, however, for social and public benefits or be auctioned in accordance with law to non-infringing persons for self use;

(3) Goods other than specified in the preceding clauses shall be disposed of in line with relevant State Council stipulations.

Article 25 After effectuation of Customs decisions, decisions by departments in charge of intellectual property rights, and verdicts or rulings of people's court, customs offices shall return the guarantees paid by the parties involved after deduction of the following items:

(1) Costs for the storage, keeping, disposal of goods;

(2) Compensations to losses suffered by relevant parties due to improper applications.

Article 26 Civil disputes between the proprietor and the consignee or the consignor shall be settled through legal procedures, arbitration or any other forms chosen by the parties concerned in accordance with law. Customs offices shall not accept such cases.

Chapter V Legal Responsibilities??

Article 31 Criminal responsibilities shall be affixed in case crimes are committed through import or export of right-infringing goods.


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