Joint Circular No. 129/2004/TTLT-BTC-BKHCN dated December 29, 2004 of the Ministry of Finance and the Ministry of Science and Technology guiding the application of measures for border control of industrial property over export goods and import goods

CIRCULAR

PROVIDING GUIDELINES ON IMPLEMENTATION OF MEASURES FOR BORDER CONTROL OF INDUSTRIAL PROPERTY RIGHTS IN IMPORT OR EXPORT GOODS

Pursuant to the Law on Customs dated29 June 2001;

Pursuant to the Ordinanceon Dealing withAdministrative Offencesdated 2 July 2002;

Pursuant to Decree No. 77-2003-ND-CP of the Governmentdated 1 July 2003on duties, powers andorganizationalstructureof the Ministry of Finance;

PursuanttoDecreeNo.54-2003-ND-CPoftheGovernmentdated19May2003asamendedby Decree No. 28-2004-ND-CP of theGovernmentdated 16 January 2004 on functions, duties, powers andorganizationalstructure of the Ministry of Science & Technology;

Pursuant toarticle 14 of Decree No. 101-2001-ND-CP of the Government dated31 December

2001on customsprocedures, customsinspection and control;

Pursuant to article 64.6of Decree No. 63-CP of the Government dated 24 October 1996as amendedbyDecreeNo.06-2001-ND-CPoftheGovernmentdated1February2001providing detailed regulationson industrialproperty;

TheMinistryofFinanceandtheMinistryofScience&Technologyherebyprovidethefollowing guidelines on implementation of measures for border control of industrialproperty rights in import or export goods:

Section I. GENERAL PROVISIONS

I. INTERPRETATION OF TERMS:

The followingterms in thisCircular shallbe construedas follows:

1.1Objectofindustrialpropertymeansaninvention,utilitysolution,industrialdesign,design

ofarrangementofasemi-conductingintegratedcircuit,trademark,appellationoforiginof goods or other object of industrialpropertywhichis protected by the law of Vietnam.

1.2CertificateofprotectionmeansaPatenttoaninvention;aCertificateofexclusiverightto

autilitysolution;aCertificateofexclusiverighttoanindustrialdesign(aCertificateforan industrial designissued pursuant to the 1989Ordinance on Protection of Industrial Designs); a Certificate of registration of design of arrangement of a semi-conducting integratedcircuit;aCertificateofregistration oftrademark;anda Certificateofrighttouse an appellation of origin of goods.

1.3Document proving industrial propertyownershipmeans a Decision recognizing a well- knowntrademark,aDecisionagreeingtoprotectionofaregisteredtrademarkpursuantto the Madrid Agreement, and other types of documents certifying rights to objects of industrialproperty pursuant to the law on industrialproperty.

1.4Ownerofindustrialpropertyrightsmeansan"Owner ofaCertificateofprotection",Owner ofindustrialpropertyrightspursuanttoadocumentprovingindustrialpropertyownership, and "Legal assignee of industrialpropertyrights".

1.5Measuresforbordercontrolofindustrialpropertymeansmeasuresforcheckingwhethergoodshaveacounterfeittrademarkandifsodetectingsame;temporarysuspensionof customs clearance procedures for goods where thereisan indication that such goods infringeindustrialpropertyrights;measuresforcheckingandconfirmingthelegalstatus ofindustrialpropertyrightsingoodsforwhichcustomsclearanceprocedureshavebeen temporarily suspended; and measures for dealing withgoods for which customs clearanceproceduresweretemporarilysuspendedandwhichinfringeindustrialproperty rightsand for dealing with the related parties in accordance with the provisions in this Circular.

1.6Goodswhichinfringeindustrialpropertyrightsmeansimportorexportgoodswithafactor in breach of the lawon industrialproperty.

1.7Goodswithacounterfeittrademarkmeansimportorexportgoods,includingpackaging, labelsandstickerscarryingatrademarkwhichoverlapswithorwhichisfundamentally indistinguishable from a protected trademark for goods of the same type without permissionfromtheownerofthetrademark.Goodswithacounterfeittrademarkarea special example of goodswhich infringeindustrial property rights to a trademark.

1.8Applicantmeansanypersonlodgingarequestforacheckanddetectionofgoodswitha counterfeit trademark, or any person lodging a request for temporary suspension of customs clearanceprocedures in respect of importor export goods suspected of infringing industrialpropertyrights.

1.9Applicationmeansbothanapplicationrequestingacheckanddetectionofgoodswitha counterfeit trademark, and an application requesting temporary suspensionof customs clearanceprocedures in respect ofimport or export goods suspected of infringing industrialproperty rights.

1.10Owneroftheconsignmentofgoodsmeansanimporterofgoods,anexporterofgoods, and theowner of a consignment of goods.

1.11Servicesorganization representing an owner of industrial property rightsmeans an organization which satisfies all the conditions to conduct the business of providing servicesrepresentinganownerofindustrialpropertyrightsinaccordancewiththelawon industrialproperty.

2. Applicableentities:

2.1 This Circular shall apply to all import goods andexport goods, except for the cases stipulated in clause 2.2 below.

2.2 This Circular shallnotapply to goods importedor exported other than for business purposes, including:

(a) Humanitarianaid goods;

(b) Goods in transit;

(c) Goodstemporarilyimportedforre-export,andgoodstemporarilyexportedforre- import servicing work or living conditions of Vietnamese organizationsand individualsorforeignorganizationsandindividualswithinthecriteriafordiplomatic immunity;

(d) Goods being gifts or goodsbeing moved within the criteria for duty-free,and personal luggage within the criteria stipulated by regulations of the Government.

Section 2 REQUESTFORAPPLICATION OF MEASURESFOR BORDERCONTROL OF INDUSTRIAL PROPERTYRIGHTS

3. Right to lodge an Application requesting applicationof measures for border control of industrial propertyrights:

3.1 An owner of industrial property rights shall have the right to lodge an Application requestingthecustomsofficetoapplymeasuresforbordercontrolofindustrialproperty rights.

3.2 Whereanownerofindustrialpropertyrightsisalicensee,therightstipulatedinclause

3.1 above shall only arise when thelicensor has not exercised its right to lodge an Applicationwithinaperiod ofthreemonths asfromthedatethelicenseesuggeststhatan Applicationbelodged,andiftheimportorexportofthegoodsbyathirdpartywillcause loss to the licensee.

3.3 The right to lodge an Application shall beproven by the following documents:

(a) CopyCertificateofprotectionorotherdocumentprovingthattheindustrialproperty right iscurrently protectedin Vietnam;

(b) CopyCertificateofregistrationoflicencecontractrelatingtotheobjectofindustrial propertyandwithintheperiodofeffectivenessorotherdocumentprovingthatthe applicantisthelicenseeandthatthelicensorhasnotexercisedhisrighttolodge an application as stipulated in clause 3.2 of this Circular.

3.4 AnypersonwhohastherighttolodgeanApplicationrequestingthecustomsofficeto apply measures for bordercontrol of industrialpropertyrights shall lodgean Application in accordancewith the followingprovisions:

(a) A Vietnamese individual, legal entity or other subject and a foreign individual residinginVietnammaydirectlylodgeanApplicationormayauthorizeaservices organization representing theowner of industrial property rights to lodge the Application;

(b) AforeignlegalentitywitharepresentativeofficeinVietnam,oraforeignindividual

or foreign legal entity with a production andbusiness establishment in Vietnam may authorize its representativeoffice, or its production and business establishment in Vietnam, or a servicesorganization representing theowner of industrialproperty rights to lodge the Application;

AforeignindividualnotresidentinVietnamandwhodoesnothaveaproduction and business establishment in Vietnam, or a foreign legal entity which does not havearepresentativeofficeinVietnammayonlyauthorizeaservicesorganization representing the owner ofindustrialproperty rights tolodge the Application.

4. Conditionsforarequest forapplicationofmeasuresforbordercontrolofindustrial propertyrights:

4.1 A request for a check of whether goodshave a counterfeit trademark and if so for detection of same maybe made when theowner of industrial property rights in the trademarkdoesnothavedetailedinformationaboutthespecificconsignmentofimportor exportgoods suspectedof having a counterfeit trademark but hasdetailedinformation permittingdetection of goods with acounterfeit trademark, including:

(a) Adetaileddescriptionofthegoodswiththecounterfeittrademark,aphotoofthe genuinegoodsandaphotoofthegoodswiththecounterfeittrademark,andthe points distinguishing the genuine goods from the goods with the counterfeit trademark;

(b) A list of legal importers and exporters; a list of people suspected to have the capability toimportor export goods with a counterfeit trademark; the sources of goods;

(c) Methods of import and export; packaging methods; selling price of the genuine goods and selling price of the goodswith a counterfeit trademark;

(d) Thecountryfromwhichthegoodsareusuallyimportedortowhichthegoodsare usuallyexported,andotherinformationrelatingtotheimportorexportofthegoods with a counterfeit trademark.

4.2 Arequestfor temporarysuspensionofcustomsclearanceprocedures shallbe madefora specificconsignmentofimportorexportgoodssuspectedofinfringingindustrialproperty rights when theowner of the industrial property rights has information permitting confirmationof the consignment of import or export goods, including:

(a) The object of industrialproperty which is suspected tobe infringed;

(b) Nameand address of theimporter or exporter of goods;

(c) Information about theproposeddate and location for conducting customs clearanceprocedures;

(d) A detaileddescription or a photo ofthe goods suspected of infringing industrial property rights.

4.3 Anownerofindustrialpropertyrightsmakingarequestforapplicationofmeasuresfor border control of industrial property rights must satisfy the conditionsonguaranteeing payment of expenses and compensation for damages arising as the result of the temporarysuspensionofcustomsclearanceproceduresattherequestofsuchownerif thegoodsthesubjectofsuchrequestareconfirmedasnotinfringingindustrialproperty rights.

The above-mentioned guarantee of discharge of financial obligations shall be:

(a) Receiptforpaymentofasecuritysumintothetemporarycustodyaccountofthe customsofficeattheStateTreasuryinanamountequaltotwenty(20)percentof thevalueoftheconsignmentofgoodsasstatedinthecontractorinaminimum amountoftwenty(20)milliondong(ifthevalueoftheconsignmentsuspectedof infringing industrialpropertyrights is unknown); or

(b) Letter of guaranteefrom a credit institution or other organization authorized to conductbankingoperationsguaranteeingtheundertakingtopaytotheownerof theconsignmentallexpensesanddamagesarisingastheresultofthetemporarysuspensionofcustomsclearanceproceduresifthesubjectgoodsareconfirmedas not infringing industrialproperty rights.

5. Time-limit[forapplication],andscopeofarequestforapplicationofmeasuresfor border control of industrial propertyrights:

5.1 Anownerofindustrialpropertyrights shallhavetherighttorequestthecustomsofficetoapplymeasuresfor lodgingtheApplication.Thesetime-limitsmaybeextendedbyafurtheroneyearinthe caseofgoodswithacounterfeittrademarkandafurthertwomonthsinthecaseofgoods suspectedofinfringingindustrialpropertyrights,butnotbeyondthedurationofprotection oftherelevantobjectofindustrialproperty,andtheapplicantmustpayfeesforextension as stipulatedby regulations.

5.2 Anownerofindustrialpropertyrightsshallhavetherighttorequestacustomsofficeto apply measures for border control ofindustrial property rights within the scope of all bordergates determined to be within thegeographical area of management of oneor moreCustoms Divisions [and/or] municipalorprovincial CustomsDepartments

6. Application requesting application of measures for border control of industrial propertyrights:

6.1 Anapplicationrequestingacheckofwhethergoodshaveacounterfeittrademarkandif so detectionof same, shall comprise the following documents:

(a) Application inthe Form inAppendix 1 tothis Circular;

(b) DocumentprovingtherighttolodgetheApplicationasstipulatedinclause3ofthis Circular;

(c) Power of attorney (if the Application is lodged by a services organization representing the owner of industrialproperty rights or by another representative pursuant to clause 3.4 of this Circular);

(d) Informationoropinionfromthebodyadministeringindustrialpropertyrights¹inthe caseofinitialevidence(ifany)permittingthecustomsofficetoconfirmwhetherthe goods have acounterfeit trademark pursuant to clause 4.1 of this Circular.

6.2 An application requesting temporary suspension of customs clearanceprocedures for importor exportgoodssuspectedofinfringingindustrialpropertyrights,shallcomprise the following documents:

(a) Applicationrequestingtemporarysuspensionofcustomsclearanceproceduresin the Form inAppendix 2 to this Circular;

(b) Power of attorney (if the Application is lodged by a services organization representing the owner of industrialproperty rights or by another representative pursuant to clause 3.4 of this Circular);

(c) DocumentprovingtherighttolodgetheApplicationasstipulatedinclause3ofthis Circular;

(d) Initialevidenceabouttheimportorexportgoodssuspectedofinfringingindustrial property rights pursuant to clause 4.2 ofthis Circular;

(dd) Letterguaranteeingdischargeoffinancialobligationsasstipulatedinclause4.3of this Circular (if any).

6.3 Ifinformationaboutgoodswithacounterfeittrademarkhasalreadybeenrecognizedat thecustomsoffice,thentheapplicantneednotlodgethedocumentsprescribedinsub- clauses(b)and(c)ofclause6.2onconditionthattheserialnumberoftheApplication requesting a check of whether goodshave a counterfeit trademark and if sodetecting same,is specified.

7. JurisdictiontoreceiveApplicationsrequestingapplicationofmeasuresforborder control of industrial propertyrights:

7.1 A Customs Division shall have jurisdiction to receive Applications if the scope of the request for applicationof measures for controlis bordergates within the scopeof management of such Customs Division.

7.2 A municipal or provincial Customs Department shall have jurisdiction to receive Applications if the scope of the request forapplication of measures for controlis bordergates within the scope of management of such municipal or provincial Customs Department.

7.3 TheGeneralDepartmentofCustomsshallhavejurisdictiontoreceiveApplicationsifthe scope of the request for application of measures for control is bordergates within the scope of management of two ormoremunicipal orprovincialCustoms Departments.

8. DealingwithApplications:

8.1 Withinaperiodofthirty(30)daysfromthedateofreceiptofanApplicationrequestinga check of whether goods have a counterfeit trademarkand if so detection of same, or within twenty-four(24)working hoursof receipt ofan Applicationrequestingtemporary suspensionofcustomsclearanceprocedures,thecustomsofficeshallberesponsibleto consider theApplicationas follows:

(a) Thehead of the customs office receiving the Application shall issue a notice acceptingtheApplicationandrecognizingtheinformationintheApplication,ifthe Applicationdoesnotbelongtothecasesstipulatedinsub-clauses(b)and(c)of thisclause.

(b) Theheadofthecustomsofficereceiving theApplicationshallissue totheapplicant anoticeofdeficienciesintheApplicationandshallrequesttheapplicanttoamend samewithinaperiodofthirty(30)daysfromthereceiptofsuchnoticeinthecase of an Application requesting a check of whether goodshave a counterfeit trademark,orwithinthreedaysinthecaseofanApplicationrequestingtemporary suspensionof customs clearance procedures, if the Application falls within the following cases:

(i) Theapplicationfiledoesnotcontainallthedocumentsprescribedinclause6 of this Circular;

(ii) TheApplicationwasnotpreparedontheprescribedFormordoesnotcontain all the information required;

(iii) The Application was not lodged inaccordance withclause 3.4 of this Circular;

(iv) TheApplicationhasinsufficientdetailedinformationforthecustomsofficeto be able todetect a counterfeit trademarkor goods suspectedof infringing industrialproperty rightsas stipulated in clauses 4.1 or 4.2 of thisCircular.

(c) Thehead of the customs office receiving the Application shall issue a notice refusing to accept the Application in thefollowing cases:

(i) The customs office receiving the Application does nothave jurisdiction pursuant to clause 7 of this Circular;

(ii) Therearegroundsforaffirmingthattheapplicantdoesnothavetherightto lodgean Applicationas stipulated in clauses 3.1 and3.2 of this Circular; or

(iii) The Application containsdeficiencies which, despite a request for amendment, have not been amendedbythe applicant.

8.2 On request by anowner of industrial property rights, any customs office which has alreadyacceptedanApplication shallberesponsible toadditionally recognizeallchanges relevant toinformation already recognized on condition that the personmaking the request pays fees stipulated by the regulations.

Section 3.APPLICATION OF MEASURES FOR BORDER CONTROL OF INDUSTRIAL PROPERTY RIGHTS

9. Groundsfor,periodfor,andentitiessubjecttoapplicationofmeasuresforborder control of industrial propertyrights:

A customs office shall apply the measures prescribed in this Section on the following bases:

9.1 An application requestinga check anddetection of goods with acounterfeit trademark whichhasalreadybeenrecognizedpursuanttoclause8ofthisCircular,duringaperiod for one year calculated from the date of lodging the Application;

9.2 Anapplicationrequestingtemporarysuspensionofcustomsclearanceproceduresfora specificconsignmentofimportorexportgoodswhichhasthespecialcharacteristicsset outintheApplication,duringaperiodofthreemonthscalculatedfromthedateoflodging the Application.

10. Responsibilitytocarryoutthemeasuresforbordercontrolofindustrialproperty rights:

10.1 TheGeneralDepartmentofCustomsandtheCustomsDepartmentwhichhasaccepted anApplicationshallprovidetoallCustoms Divisions withinthe scopeofthe requestinthe Applicationall information whichhas already been recognized aboutgoods with a counterfeit trademark and goods withindications of infringing industrial property rights, and shall give directions onorganizing application of the measures prescribed in this

Section

10.2 TheCustomsDivisionwhichhasacceptedanApplicationorreceivedinformationabout an Application from higher level bodies shall organize a check and detection of goods withacounterfeittrademarkorofgoodswithindicationsofinfringingindustrialproperty rights, on the basis of information provided and shall thenapply measuresfor border controlofindustrialpropertyrightsinaccordancewiththeproceduresprescribedinthis Section.

11. Checkanddetection,andtemporarysuspensionofcustomsclearanceprocedures for goodswith a counterfeit trademark and goods suspected of infringing industrial propertyrights:

11.1 Based on the information which has already been recognized [andas] set out in an Application requesting application of measures for border control of industrial property rightsand which Application hasbeen accepted, the Customs Division shall be responsibletocarryoutacheckanddetectionofgoodssuspectedofhavingacounterfeit trademark and of infringingindustrial property rights.

11.2 Ondiscoveryofaconsignmentofgoodssuspectedofhavingacounterfeittrademarkor ofinfringingindustrialpropertyrights,thedirectoroftheCustomsDivisionshallhavethe right to temporarily suspend customsclearanceprocedures and shall immediately provide writtennotice to the Applicant to lodge a letter guaranteeing discharge of financial obligationsasprescribedinclause4.3ofthisCircular(ifnotyetlodged)withina time-limit of three working days from the date of issuance of the notice.

(a) Iftheapplicantfailstocomplywiththeaboverequest,theCustomsDivisionshall continue to conduct customs clearanceprocedures for suchconsignment of goods;

(b) If the applicant complies with the above request, the director of the Customs Division shall issue a decision temporarily suspending customs clearance proceduresforsuchconsignmentofgoods,andsendthedecisiontothepartiesconcerned.

Adecisiontemporarilysuspendingcustomsclearanceproceduresmustspecifythe effected consignment of goods; and the name, address and contactdetails (telephonenumberandfaxnumber)oftheowneroftheconsignmentofgoodsand of theapplicant; theowner of industrial property rights;and the reason for and duration of the temporary suspension ofcustoms clearanceprocedures.

12. Duration of temporarysuspensionofcustoms clearance procedures:

12.1 Thedurationoftemporarysuspensionofcustomsclearanceproceduresshallbeten(10) daysas fromthe date of issuance of the temporary suspension decision.

The director of the Customs Division may issue a decision extending theduration of temporarysuspensionofcustomsclearanceproceduresforanadditionalmaximumten

(10)daysifwithinthe[original]durationoftemporarysuspensiontheapplicantrequests an extension andpaysan additional security sum pursuant to clause 4.3(a) of this Circular. If a customs declarationhas already been registered andaccepted but thereafter customs clearance procedures are temporarily suspended to enable the customsofficetoinspectandverifythelegalstatusofindustrialpropertyrights,thenthe time-limitforpaymentofduty(ifany)shallbecalculatedfromthedateofissuanceofthe decisiontocontinuetoconductcustomsclearanceproceduresforsuchconsignmentof goods.

12.2 The time-limit to enable the customs office to confirm the legal status ofindustrial propertyrightsingoodsforwhichcustomsclearanceprocedureshavebeentemporarily suspendedpursuanttoclause14.5ofthisCircularshallnotbeincludedwhencalculating the duration stipulated in clause 12.1 above.

13. Inspectionand collationof evidence that goods infringe industrial propertyrights:

13.1 Duringtheperiodoftemporarysuspensionofcustomsclearanceprocedures,[and]atthe requestoftheapplicantorowneroftheconsignmentofgoods,thecustomsofficeshall arrangeforallpartiestoinspecttheconsignmentofgoodsforwhichcustomsclearance procedures have been temporarily suspended in order to collate evidence and informationabout suchconsignment of goods.

13.2 Evidenceabout goods for which customs clearanceprocedures have been temporarily suspended may be collated in the form of a detailed descriptive statement of special signs,photosofthegoods,andsamplesofthegoodsorgoodspackaginginnecessary andappropriatecases.TheCustomsDivisionmustsealupanyevidencewhichistobe senttoanagencycompetenttoprovideanevaluation[and/or]toresolvethedispute(in accordancewith the request of the parties).

14. Confirmation of legal status of industrial property rights in goods forwhich customs clearance procedureshavebeen temporarilysuspended:

14.1Confirmation of legal status of industrial property rights in respect of goods for which customsclearanceprocedureshavebeentemporarilysuspendedmeansconsideringandconcludingwhetherornotsuchgoodsaregoodswhichinfringeindustrialpropertyrights, and includesconfirmationof the following about thegoods:

(a) Do the goods containan illegal factor, and

(b) Has theowner of industrial property rights, aperson authorizedby theowner of industrial property rights or a person with a previoususe right already put the goods onto the Vietnamesemarket or anoverseasmarket?

14.2 A customs office shall carry out the procedures for confirmation of legal status of industrial property rights in respect of goods for which customs clearanceprocedures have been temporarily suspended, if

(a) Duringtheperiodoftemporarysuspensionofcustomsclearanceprocedures,the applicantlodgeswiththeCustomsDivisiona[further]Applicationrequestingthat the conductinfringing industrial property rights be dealt with and alsoenclosing evidence,argumentanddataorthewrittenconclusiononevaluationofindustrial propertyrightsfromthebodyadministeringindustrialpropertyrightsandaffirming that the goods for which customs clearance procedures were temporarily suspended are goods which infringe industrialpropertyrights;

(b) Within aperiod of thirty (30)days from the date of issuance of a decision to continue to conduct customs clearance procedures for a consignment of goods pursuanttoclause15.1(e)ofthisCircular,theapplicantlodgeswiththeCustoms Division a [further] Application requesting that the conduct infringing industrial propertyrightsbedealtwithandalsoenclosingevidence,argumentanddataor the written conclusion on evaluationof industrialproperty rights from the body administering industrial property rights and affirming that the goods for which customs clearanceprocedures were temporarily suspended are goods which infringe industrial property rights.

14.3 Confirmation of whether goods contain an illegalfactor must comply withthe law on industrialproperty.

Thebasisforconfirminganillegalfactorshallbeevidence,argumentanddataprovided by the applicant and by the owner of the consignment of goods.

Thebasis for confirming whether the owner of industrialproperty rights, a person authorizedbytheownerofindustrialpropertyrightsorapersonwithaprevioususeright already put the goods for which customs clearance procedures were temporarily suspendedontothemarketshallbeevidence,argumentanddataprovingsuchfactand provided by the owner ofthe consignment of goods.

14.4 IftheCustomsDivisionisunabletoitselfconfirmthelegalstatusofindustrialproperty rightsinthegoodsforwhichcustomsclearanceproceduresweretemporarilysuspended, basedon the evidence,argument and dataprovided, then the Customs Division shall have the right to require the applicant to send a written request for an evaluation of industrialpropertyrightsfromtheStateadministrativebodyforindustrialpropertyrightsin order to havean opinionand conclusion.

Theevidence,argumentanddatawhichtheCustomsDivisionusestoreachaconclusion about thelegal status of [industrialproperty rights in] the goods for which customs clearanceproceduresweretemporarilysuspended,maybeprovidedbyanyoneofthe parties butmust also be provided to the otherparties who may givetheir opinion thereon.

14.5 Thetime-limitforconfirmationofthelegalstatusofindustrialpropertyrightsinrespectof thegoodsforwhichcustomsclearanceproceduresweretemporarilysuspended,shallbeten (10) days calculated from the date oflodging the Application requesting that the conductinfringingindustrialpropertyrightsbedealtwithpursuanttoclause14.2ofthis Circular.Anyperiodreservedfortherelatedpartiestosupplementevidence,argument anddata or the time-limit for seeking an evaluation from the Department of Industrial PropertyorlocalDepartmentofScience&Technology shallnotbeincludedintheabove- mentioned time-limit.

15. Continuingtoconductcustomsclearanceproceduresforaconsignmentofgoods forwhichcustomsclearanceproceduresweretemporarilysuspended,anddealingwith the related parties:

15.1 Thedirector oftheCustomsDivision shallissue adecisionto continuecustomsclearance procedures for a consignment of goods for which customs clearance procedures were temporarily suspended, in the following cases:

(a) If on expiry of the period for temporary suspension of customs clearance proceduresas fixed in the decision on temporary suspension, theCustomsDivision hasnot received one of the following documents:

(i) A[further]Applicationfromtheapplicantrequestingthattheconductinfringing industrialpropertyrightsbedealtwithandenclosingevidence,argumentand dataorthewrittenconclusiononevaluationofindustrialpropertyrightsfrom thebodyadministeringindustrialpropertyrightssothattherearegroundsfor confirmingthelegalstatusofindustrialpropertyrightsinthegoodsforwhich customs clearanceprocedures were temporarily suspended; or

(ii) AdocumentfromacompetentStatebodyorcourtconfirmingithasreceived anapplication requesting resolutionof the dispute about infringement of industrial property rights relating tothe consignment of goods for which customs clearanceprocedures were temporarily suspended.

(b) When thereis a conclusion on confirmation of legal status of industrial property rights affirming that the consignment of goods for which customs clearance procedureswere temporarily suspendeddoesnot infringe industrialproperty rights;

(c) When the Customs Division receives a decision fromany competentbody resolving the dispute about industrial property rights and affirming thatthe consignmentofgoodsforwhichcustomsclearanceproceduresweretemporarily suspendeddoesnot infringe industrialproperty rights;

(d) Whenthedecisiontemporarilysuspendingcustomsclearanceproceduresisitself stayed orwithdrawnpursuant to a decision resolvinga complaint;

(dd) WhentheapplicantwithdrawstheApplicationrequestingtemporarysuspensionof customs clearanceprocedures;

(e) When thegoods for which customs clearance procedures were temporarily suspendedare goods suspected ofinfringing industrialproperty rights in an invention, utility solution, industrialdesign, design of arrangement of a semi- conductingintegratedcircuitorbusinesssecretandtheowneroftheconsignment ofgoodsrequestscontinuationofcustomsclearanceprocedures(onconditionthat a sample of the goods is retained to provide a basis fordealing withthem afterwards)andatthesametimepaysasecuritysumintothetemporarycustody accountofthecustomsofficeattheStateTreasuryinanamountequaltotwenty (20) percentof the value of the consignment of goods asstated inthe contract.

15.2 Thecustomsofficeshallnotbeliableforanytemporarysuspensionattherequestofthe applicant andshall take measures to dealwith the related partiesas follows:

(a) Inthecasesprescribedinclauses15.1(a)to15.1(dd)inclusive,thecustomsoffice shallcarry out the followingwork:

(i) Issueadecisioncompellingtheapplicanttopayallexpensesincurredbythe owneroftheconsignmentofgoodsandarisingfromtheimpropertemporary suspensionofcustomsclearanceprocedures.Expensesarisingshallinclude storage, loading andunloading, andpreservationof the goods. Damages arisingfromtemporarysuspensionshallbeagreedbythetwopartiesorshall be fixed in accordancewithcivil litigation procedures;

(ii) Refundany security sum paid into the temporary custody account of the customsofficeorreturntheguaranteefromacreditinstitutiontotheapplicant after the applicant has discharged the obligation to pay the expensesand damagesarisingpursuanttoadecisionofthecustomsofficeoracompetent bodyresolvingthedispute orcomplaintaboutindustrialpropertyrightsrelating to the consignment of goods (if any);

(iii) Prepareminutesofadministrativebreachandrequestthecompetentbodyto issueadecisionfiningtheapplicantforexercisingindustrialpropertyrightsfor the purpose of unfair competitionaccording to provisions in guidelineson dealing withadministrative offences in the industrialproperty sector.

(b) Inthecaseprescribedinclauses15.1(e)above,thecustomsofficeshalltakethe following measures to deal with the issue:

(i) Refundtotheowneroftheconsignmentofgoodsanysecuritysumpaidinto the temporary custodyaccountof the customs office, if

- On the expiry of thirty (30) workingdays after the date of the decision to continue to conduct customs clearanceprocedures the applicant failed to lodgedwiththecustomsofficea[further]Applicationrequestingthatconduct infringing industrialproperty rights be dealt with and enclosing evidence, argument and data orthe written conclusion on evaluation of industrial property rights from the bodyadministeringindustrialproperty rights and affirming that the goods for which customs clearance procedures were temporarilysuspendedare goods which infringeindustrialproperty,orfailedto lodge a court document confirming that the courthas receiveda request to resolvethedisputeaboutinfringementofindustrialpropertyrightsrelatingto such consignment of goods;

- Thegoods for which customs clearance procedures were temporarily suspended are not goodswhich infringeindustrial property rights;

(ii) Issuea decisionimposing apenalty ontheownerofthe consignmentofgoods foran administrativebreachpursuanttotheprovisionsin clause16.1and 17.2 ofSection3ofthisCircularandrefundingthesecuritysumandreturningthe guaranteefromthecreditinstitutiontotheapplicantiftheconclusionisthat the goods for which customs clearance procedures were temporarily suspended are goods which infringe industrialpropertyrights.

16. Dealingwith the related partieswhere there is confirmation that thegoods forwhich customs clearance procedureswere temporarily suspended are goodswhich infringe industrialpropertyrights: