China Customs' Enforcement of In

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					 Building Anti-Counterfeiting
   Capacity and Capabilities
--- China Customs’ Practice
 Li Qunying
 IPR Division, General Administration
 of Customs
The Customs’ capacity and capability in anti-
 counterfeits can be reflected by :

 - Increased seizures of counterfeits
 - Creating substantial prevention against
 future violations
How to increase Customs
seizures of counterfeits at
Customs traditional tool to detect
counterfeits --- physical Examination
       China’s total volume of foreign trade
     increased to USD 2,562 billions in 2008

 China Customs inspected
 - 49 millions shipments of cargo
 - 75 millions containers              3% Physical
 - 354 millions travelers’ luggage     examination
 - 126 millions postal parcels
 - 106 millions express consignments

How to increase seizures?
 Expanding application of Risk
     Analysis techniques

Random Check         Smart Control
  Solution: Risk Analysis


                              risks and
                            fixing targets

A Successful Risk Analysis Application
• In January 3, 2009, a company registered in Jie Yang
  of Guangdong Province declared to export “1026
  computer cabinets” to Shenzhen Customs.
• The goods were transported in a 20-feet container,
  with the destination of Egypt.


The Customs found it
(1) Computer cabinets are rarely transported
    in 20-feet containers.
(2) High risky destination;
(3) The exporter came from the area where
production of fake medicine was frequently
(4) The Customs broker had records of IPR
Physical examination
3,000,000 counterfeiting
medicine were discovered

LEVITRA    Panadol
 China Customs’ Seizures in 2008

 Application of risk analysis greatly
   increased Customs seizures
• China Customs detained 11,135 shipments of
IPR violation, seizing 645,182,937 pieces of
infringing commodities.
• 99% of the infringing commodities were
seized by Customs in their ex-officio actions.
 How to secure risk analysis success

  Information--- basic condition for
           operating risk analysis

• Establishment of a national Customs database
of IPR violations
• Strengthening cooperation with Private Sector
• Seeking information from other administrations
• Developing international Customs cooperation
How to create substantial
prevention against future
       violations ?
 Customs’ efforts in creating substantial
   prevention against counterfeiting

• Adequate Customs penalty
• Immediately notifying Customs seizures to
police AIC and commerce administration
• Sufficiently transparent to IPR owners
                               March 24,2006
  Public Security Ministry and General Administration of Customs released

The Provisional Rules on Cooperation on
Intellectual Property Rights Enforcement

  Customs’ in-time notifying
                                           Co-organizing actions
  border seizures to police
                                              against serious
Customs’ transferring case to
     police for criminal
        punishment         Jointly operating international
A Successful Customs-Police Cooperation
July 13, 2007, 3 Korean citizens, via a forwarding agency
 registered in Shenzhen, declared to export a shipment of “cotton
 coat” to USA via Republic of Korea from Qingdao. The goods
 were discovered as 340,000 counterfeited medicine. The Customs
 immediately notified local police and the violators were arrested
 and condemed.
Thank you for your