Li QunyingIPR Division, General Administration of Customs

Building Anti-Counterfeiting Capacity and Capabilities

--- China Customs’ Practice

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

border?

Customs traditional tool to detect counterfeits --- physical Examination physical Examination

How to increase How to increase seizures?seizures?

China’s total volume of foreign trade increased to USD 2,562 billions in 2008

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- 354 millions travelers’ luggage- 126 millions postal parcels- 106 millions express consignments

China Customs inspected

- 49 millions shipments of cargo - 75 millions containers- 354 millions travelers’ luggage- 126 millions postal parcels- 106 millions express consignments

3% Physical

examination

Expanding application of Risk Analysis techniques

Random Check Smart Control

Solution: Risk Analysis

• 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.

A Successful Risk Analysis Application

Shenzhen

Egypt

The Customs found it suspicious:

(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 discovered;

(4) The Customs broker had records of IPR violation;

The Customs found it suspicious:

(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 discovered;

(4) The Customs broker had records of IPR violation;

Physical examination Physical examination

3,000,000 counterfeiting 3,000,000 counterfeiting medicine were discoveredmedicine were discovered

Viagra

LEVITRA Panadol

China Customs’ Seizures in 2008

• 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.

Application of risk analysis greatly increased Customs seizures

How to secure risk analysis success

• Establishment of a national Customs database of IPR violations • Strengthening cooperation with Private Sector• Seeking information from other administrations• Developing international Customs cooperation

Information--- basic condition for operating risk analysis

How to create substantial prevention against future

violations ?

• Adequate Customs penalty• Immediately notifying Customs seizures to police AIC and commerce administration• Sufficiently transparent to IPR owners

Customs’ efforts in creating substantial prevention against counterfeiting

March 24,2006Public Security Ministry and General Administration of Customs released

The Provisional Rules on Cooperation on Intellectual Property Rights Enforcement

Customs’ in-time notifying border seizures to police

Customs’ in-time notifying border seizures to police

Customs’ transferring case to police for criminal

punishment

Customs’ transferring case to police for criminal

punishment

Co-organizing actions against serious

violations

Co-organizing actions against serious

violations

Jointly operating international cooperation

Jointly operating international 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.

A Successful Customs-Police Cooperation

Thank you for your attention