Using Chinese Customs to Block Counterfeit Goods

If you’re a business owner worried about fake products hurting your brand, then China’s Customs IP enforcement system can be your best friend. Moreover, this powerful system helps protect millions of products every year. In fact, Chinese Customs seized over 81 million counterfeit items in 2024 alone!

However, many businesses don’t know how to use this system effectively. Furthermore, understanding the process can seem complicated at first. Nevertheless, with the right guidance, you can protect your brand and stop counterfeit goods before they reach international markets.

What is China’s Customs IP Enforcement System?

China’s Customs IP enforcement system is like having a 24/7 security guard watching over your products at the border. Additionally, this system is managed by the General Administration of Customs (GACC) and works to stop fake goods from entering or leaving China.

How the System Protects Your Business

The system protects several types of intellectual property rights including:

• Trademarks – Your brand names, logos, and symbols
• Copyrights – Your creative works and designs
• Patents – Your inventions and innovations
• Related rights – Other IP protections you own

Most importantly, this protection applies to both goods coming into China and products leaving the country. Therefore, if counterfeiters try to ship fake versions of your products, Customs can stop them.

Two Main Ways the System Works

The enforcement system operates through two main models that work together to protect your rights:

“Over 90% of IP seizures in 2024 were ex officio actions, showing how proactively Chinese Customs protects registered brands.”

1. Ex Officio Actions (Proactive Protection)

This means Customs officers automatically watch for suspicious shipments without you asking them to. Furthermore, they use advanced technology and data analysis to spot potential fakes. When they find suspicious goods, they stop the shipment and contact you immediately.

2. Application-Based Actions (Your Request)

This happens when you specifically ask Customs to investigate a particular shipment. Additionally, you can provide tips about suspected counterfeit goods. However, this method requires more work on your part.

Why This System Matters for Your Business

China remains a major source of global counterfeits, accounting for about 55% of worldwide counterfeit origins according to OECD data. Nevertheless, this also means the enforcement system can be incredibly effective at stopping fakes at their source.

Moreover, many counterfeit shipments pass through major hotspots like Shenzhen. Therefore, having Customs protection in these key areas can significantly reduce the number of fake products reaching international markets.

As a result, businesses that properly register their IP with Chinese Customs see much better protection. In fact, over 26,000 IP owners have recorded their rights with GACC, leading to higher seizure rates and better brand protection.

How to Register Your IP with Chinese Customs (Step-by-Step)

Registering your intellectual property with Chinese Customs is the most important step you can take to protect your brand. Furthermore, this process enables Customs officers to automatically watch for fake versions of your products.

Before You Start: Check Your Eligibility

First, you need to make sure your IP rights are properly registered in China. Additionally, the territorial principle applies, which means only Chinese-registered IP can be protected by Chinese Customs.

Here’s what you need to verify:

• Trademark Registration – Your trademark must be registered with CNIPA (China National IP Administration)
• Patent Protection – Your patents need valid Chinese registration
• Copyright Status – Your copyrights should be recognized under Chinese law

However, if you haven’t registered your IP in China yet, don’t worry! Our comprehensive trademark registration guide can help you get started with the process.

Required Documents Checklist

Next, you’ll need to gather the following documents before submitting your application:

Moreover, providing high-quality photos that clearly show the differences between genuine and fake products is crucial. Therefore, Customs officers can better identify counterfeits during inspections.

The Online Application Process

The application process has become much easier thanks to GACC’s online system. Furthermore, you can complete most steps digitally, saving time and reducing paperwork.

Step 1: Access the GACC IPR Recordation System

Visit the official Customs website at customs.gov.cn and navigate to the IP recordation section. Additionally, the system is available in both Chinese and English for international applicants.

Step 2: Create Your Account

Set up a secure account with your business information. Moreover, make sure to use a professional email address that you check regularly, as Customs will send important updates to this address.

Step 3: Upload Your Documents

Carefully upload all required documents in the specified formats. Furthermore, ensure all images are clear and all text is readable. However, if you need help with document preparation, our trademark and copyright services can assist you.

Step 4: Review and Submit

Double-check all information before submitting your application. Additionally, once submitted, making changes becomes more difficult and time-consuming.

Timeline, Costs, and What to Expect

Understanding the timeline and costs helps you plan your IP protection strategy effectively. Moreover, knowing what to expect reduces anxiety during the waiting period.

Review Timeline:

• Initial Review – GACC reviews applications within 30 working days
• Additional Information – If needed, you have 30 days to provide extra documents
• Final Decision – Approval or rejection notice typically arrives within 60 days total

Registration Costs:

• Government Fees – Approximately RMB 800 (about $110 USD) for trademark registration
• Translation Costs – If documents need professional translation
• Professional Assistance – Legal fees vary based on complexity

Validity Period:

Your IP recordation is valid for 10 years from the approval date. Furthermore, you can renew your registration 6 months before it expires. Additionally, you should update your information whenever there are changes to your business or IP status.

“At YCIP, we’ve helped hundreds of businesses successfully register their IP with Chinese Customs, resulting in significantly improved brand protection and reduced counterfeiting.”

Optional but Recommended: Customs Training

After your registration is approved, you can provide additional training to Customs officers. Moreover, this training helps officers better recognize your products and identify counterfeits more effectively.

Training typically includes:

• Product Features – Unique characteristics of your genuine products
• Common Counterfeits – Typical fake versions and their telltale signs
• Packaging Details – Authentic packaging elements and security features
• Quality Markers – Materials, construction, and finishing that indicate authenticity

However, remember that providing this training is voluntary but highly beneficial. Therefore, businesses that offer training often see higher detection rates for their products.

What Happens When Counterfeit Goods Are Found?

When Chinese Customs discovers potential counterfeit goods, they follow a specific legal process designed to protect both IP owners and traders. Additionally, understanding this process helps you respond quickly and effectively when Customs contacts you.

The Detection Phase: How Customs Spots Fakes

Chinese Customs uses advanced technology and data analysis to identify suspicious shipments. Moreover, their detection methods have become increasingly sophisticated over the years.

Risk Profiling System:

• Shipping Data Analysis – Customs examines shipping routes, volumes, and patterns
• Trader History – Previous violations and compliance records are reviewed
• Product Categories – High-risk items like electronics and luxury goods get extra scrutiny
• Origin Countries – Shipments from known counterfeiting hotspots are flagged

Furthermore, Customs officers receive regular training on identifying fake products. Therefore, they can spot counterfeit goods even without advanced technology.

Detention: When Customs Stops Suspicious Goods

Once Customs identifies potentially infringing goods, they immediately detain the shipment. Additionally, this detention can happen through two different processes.

Ex Officio Detention (Automatic Action):

This occurs when Customs officers spot suspicious goods during routine inspections. Moreover, this type of detention happens automatically for IP owners who have registered their rights with GACC.

Application-Based Detention (Your Request):

This happens when you specifically request Customs to investigate a shipment. However, you need to provide evidence and reasoning for your suspicion.

Notification: You Have 3 Days to Respond

After Customs detains suspicious goods, they must notify you within 3 working days. Furthermore, this notification includes crucial information you need to make decisions.

Information Included in Notification:

• Detention Details – Date, location, and customs office handling the case
• Product Information – Description, quantity, and suspected violations
• Photos – Images of the detained goods for your review
• Trader Information – Details about the shipper and consignee (when legally permissible)
• Response Deadline – Time limit for your decision

Moreover, Customs typically sends this notification via email, phone, or official mail. Therefore, it’s crucial to keep your contact information updated in the GACC system.

Verification: Confirming the Infringement

Once you receive the detention notification, you have 3 working days to examine the evidence and confirm whether the goods actually infringe your IP rights. Additionally, this verification step is critical for the entire enforcement process.

What You Need to Do:

• Review Photos Carefully – Compare the detained goods with your genuine products
• Check Authentication Features – Look for missing or incorrect security elements
• Verify Trademark Usage – Ensure unauthorized use of your registered marks
• Submit Written Confirmation – Provide an official affidavit stating your findings

However, if you determine the goods are actually genuine or you’re unsure, you must inform Customs immediately. Furthermore, false claims can result in legal consequences and damage to your relationship with Customs authorities.

Seizure Request: Taking Action Against Counterfeits

If you confirm the goods are counterfeit, you can request Customs to officially seize them. Moreover, this seizure request triggers a more thorough investigation process.

Bond Requirements:

When requesting seizure, you must provide a financial guarantee (bond) to cover potential damages if the seizure is later deemed wrongful. Additionally, this bond amount is typically calculated based on the value of the detained goods.

• Bond Calculation – Usually ranges from 50% to 100% of goods’ declared value
• Payment Methods – Bank guarantee, cash deposit, or insurance policy
• Refund Process – Bond returned after successful enforcement action

Nevertheless, experienced IP lawyers can help manage bond requirements and ensure you’re protected throughout the process.

Investigation and Final Resolution

After you request seizure, Customs conducts a thorough investigation within 30 working days. Furthermore, this investigation period can be extended in complex cases.

Investigation Process:

• Evidence Collection – Customs gathers additional proof of infringement
• Trader Interviews – Importers/exporters provide their side of the story
• Expert Analysis – Technical examination of products when needed
• Legal Review – Assessment of IP rights and infringement claims

Possible Outcomes:

• Confiscation and Destruction – Confirmed fakes are destroyed at trader’s expense
• Administrative Fines – Penalties up to 30% of goods’ value
• Criminal Referral – Serious cases transferred to prosecutors
• Civil Settlement – Parties reach private agreement
• Release of Goods – If infringement cannot be proven

Moreover, in 2024, this comprehensive process resulted in over 53,200 protection measures, demonstrating the system’s effectiveness in combating counterfeits.

China Customs IP Enforcement by the Numbers

Understanding the statistics behind China’s Customs IP enforcement helps you appreciate the system’s effectiveness. Additionally, these numbers show important trends that can guide your IP protection strategy.

2024 Enforcement Results: Record-Breaking Protection

The year 2024 marked another successful period for IP enforcement at China’s borders. Furthermore, the statistics reveal both the scale of the counterfeiting problem and the effectiveness of Customs protection.

Global Context: How China Compares Internationally

To understand China’s role in global IP enforcement, it’s important to compare these numbers with international data. Moreover, these comparisons reveal the interconnected nature of global counterfeiting networks.

US Customs and Border Protection Data (FY 2024):

• Origin of Seized Goods – Approximately 90% of US IPR seizures originated from China and Hong Kong
• Product Categories – Health and safety products, including pharmaceuticals, were prominent
• Enforcement Focus – Increased attention to e-commerce and small package shipments

However, it’s worth noting that China’s own enforcement efforts are helping reduce the export of counterfeit goods. Furthermore, the 7-fold increase in seizures since 2012 demonstrates China’s commitment to IP protection.

Trending Categories and Enforcement Patterns

The 2024 data reveals important trends about which products are most commonly counterfeited and where enforcement is most effective.

Most Targeted Product Categories:

1. Electronics and Technology – Smartphones, accessories, and consumer electronics
2. Apparel and Fashion – Clothing, shoes, and luxury fashion items
3. Health and Safety Products – Pharmaceuticals and medical devices
4. Automotive Parts – Car components and replacement parts
5. Cosmetics and Personal Care – Beauty products and skincare items

Additionally, there’s been a notable shift toward imported counterfeits targeting Chinese brands. Therefore, this trend reflects the changing global manufacturing landscape, with some production moving to Southeast Asia.

“The rise in imported counterfeits targeting Chinese brands shows how global counterfeiting networks adapt to changing manufacturing patterns and enforcement efforts.”

Success Rates and Effectiveness Metrics

Beyond the raw numbers, it’s important to understand how effective the system actually is in protecting IP rights. Moreover, these metrics help businesses evaluate whether to invest in Customs registration.

Enforcement Effectiveness Indicators:

• Detection Rate – Over 90% of actions were proactive (ex officio)
• Response Time – Average 2.5 days for initial IP owner notification
• Confirmation Rate – Approximately 85% of detained goods confirmed as counterfeit
• Resolution Time – Average 25 days for case completion

Furthermore, businesses that have registered their IP with Customs report significantly higher satisfaction rates with enforcement outcomes. Therefore, the investment in proper registration typically pays off through better protection.

Common Problems and How to Avoid Them

While China’s Customs IP enforcement system is powerful, businesses often face challenges when trying to use it effectively. Additionally, understanding these common problems helps you prepare better strategies and avoid costly mistakes.

Challenge #1: Bond Requirements Can Be Expensive

One of the biggest obstacles businesses face is the financial burden of bond requirements. Moreover, small and medium-sized enterprises often struggle with these upfront costs.

Why Bond Requirements Exist:

• Legal Protection – Protects traders from wrongful seizure claims
• Risk Management – Ensures IP owners are serious about enforcement
• Damage Coverage – Compensates for delays and storage costs

Solutions to Manage Bond Costs:

Nevertheless, the bond system serves an important purpose in maintaining fairness. Therefore, viewing bonds as an investment in brand protection rather than a cost can help shift your perspective.

Challenge #2: Investigation Delays Beyond 30 Days

While the regulations specify a 30-day investigation period, complex cases often take longer to resolve. Furthermore, these delays can be frustrating for businesses seeking quick action.

Common Causes of Delays:

• Complex Product Analysis – Technical products requiring expert examination
• Multiple Jurisdictions – Cases involving different customs offices
• Large Shipment Volumes – Extensive documentation and evidence review
• Trader Disputes – When importers/exporters challenge the allegations

How to Minimize Delays:

• Provide Complete Evidence – Submit thorough documentation upfront
• Maintain Clear Communication – Respond promptly to Customs requests
• Use Professional Representation – Experienced trademark attorneys can streamline the process
• Prepare Standard Materials – Have template responses ready for common situations

Challenge #3: Limited Shipping Data Sharing

Many businesses want more detailed information about seized shipments, but Customs has limitations on what data they can share. Additionally, privacy laws and trade regulations restrict information disclosure.

Information Typically Available:

• Basic Shipment Details – Origin, destination, and product descriptions
• Detention Circumstances – How and why goods were stopped
• Product Photos – Images of detained items for verification

Information Usually Restricted:

• Detailed Trader Information – Complete shipper and consignee details
• Commercial Data – Pricing, payment terms, and business relationships
• Investigation Methods – Specific detection techniques used

However, you can still gather valuable intelligence by analyzing patterns in the information you do receive. Moreover, building relationships with Customs officers through proper channels can improve information flow over time.

Challenge #4: E-commerce and Small Package Detection

The rise of e-commerce has created new challenges for Customs enforcement. Furthermore, small packages are harder to inspect thoroughly, and counterfeiters exploit this weakness.

E-commerce Enforcement Difficulties:

• Volume Overload – Millions of small packages daily
• Limited Inspection Time – Quick processing requirements
• Sophisticated Concealment – Counterfeiters use creative hiding methods
• Cross-border Complexity – Multiple shipping routes and handlers

“E-commerce small packages present the biggest challenge for Customs IP enforcement, requiring new detection technologies and strategies.”

Best Practices for Effective Enforcement

Despite these challenges, businesses can significantly improve their success rates by following proven best practices. Additionally, these strategies are based on years of experience helping clients protect their IP rights.

Registration and Preparation Best Practices

1. Register IP Early and Update Regularly

Don’t wait until counterfeiting becomes a problem. Moreover, early registration enables proactive protection from day one. Additionally, understanding the registration timeline helps you plan ahead.

2. Provide Comprehensive Training Materials

• High-Quality Photos – Multiple angles showing authentic features
• Detailed Descriptions – Written guides for identifying genuine products
• Common Counterfeits – Examples of typical fake versions
• Updated Information – Regular updates when products change

Intelligence and Cooperation Best Practices

3. Share Intelligence with Customs

When you discover counterfeiting operations, share relevant information with Customs authorities. Furthermore, this cooperation helps improve overall enforcement effectiveness.

4. Build International Cooperation Networks

Work with customs authorities in multiple countries to track counterfeit networks. Additionally, organizations like the World Customs Organization facilitate these connections.

Legal Strategy Best Practices

5. Pursue Criminal Actions for Large-Scale Cases

When appropriate, push for criminal prosecution rather than just administrative penalties. Moreover, criminal cases create stronger deterrent effects and can result in prison sentences.

6. Use Big Data and Technology

Leverage available technology tools to track counterfeiting patterns and predict problem shipments. Furthermore, professional IP consultation services can help you implement these advanced strategies.

However, remember that effective enforcement requires patience and persistence. Therefore, businesses that commit to long-term IP protection strategies typically see the best results.

However, remember that effective enforcement requires patience and persistence. Therefore, businesses that commit to long-term IP protection strategies typically see the best results.

Legal Framework: Key Laws You Need to Know

Understanding the legal foundation of China’s Customs IP enforcement is crucial for effective brand protection. Moreover, these laws provide the authority and procedures that Customs officers follow when protecting your intellectual property rights.

Primary Legal Framework: IP Protection Regulations

The cornerstone of Customs IP enforcement is the Regulations of the People’s Republic of China on Customs Protection of Intellectual Property Rights, last amended in 2023. Furthermore, this comprehensive law establishes the rules and procedures for all IP enforcement activities.

These regulations work together to create a comprehensive system that balances IP protection with fair trade practices. Additionally, the 2023 amendments strengthened enforcement powers and improved procedural clarity.

Supporting IP Laws and Their Enforcement Provisions

Several other important laws support and enhance Customs IP enforcement capabilities. Moreover, these laws work together to provide multiple avenues for protecting your intellectual property rights.

Trademark Law of the People’s Republic of China (2019 Amendment)

China’s Trademark Law provides the foundational rights that Customs protects. Furthermore, recent amendments have strengthened anti-counterfeiting provisions significantly.

These provisions give Customs clear authority to act against trademark violations. Additionally, the law’s broad definition of infringement covers most common counterfeiting scenarios.

Patent Law of the People’s Republic of China (2020 Amendment)

The updated Patent Law strengthens protection for innovative products and technologies. Moreover, it explicitly empowers Customs to handle patent infringement cases.

Article 66 – Administrative Enforcement:

“Administrative authorities, including Customs, may handle patent infringement disputes with detention as a preliminary measure for border enforcement.”

However, patent cases often require more technical analysis than trademark cases. Therefore, specialized patent attorneys like Tingfei Wang can provide crucial expertise for complex patent enforcement situations.

Copyright Law of the People’s Republic of China (2020 Amendment)

China’s Copyright Law protects creative works and enables Customs action against pirated goods. Furthermore, the 2020 amendments expanded protection for digital and online content.

Article 48 – Infringement Coverage:

“Copyright infringement includes unauthorized reproduction, distribution, and importation of protected works, supporting Customs’ authority to seize pirated goods.”

Criminal Law Provisions: When Cases Become Serious

For large-scale counterfeiting operations, China’s Criminal Law provides severe penalties that go far beyond administrative fines. Additionally, understanding these provisions helps you know when to push for criminal prosecution.

These criminal provisions create powerful deterrent effects. Moreover, Customs regularly transfers serious cases to the Public Security Bureau for criminal investigation when appropriate thresholds are met.

Penalties and Consequences: What Infringers Face

Understanding the full range of penalties helps you appreciate why the Customs enforcement system is so effective. Additionally, these consequences explain why most traders prefer to avoid IP infringement risks.

Administrative Penalties (Most Common)

Most Customs IP enforcement cases result in administrative penalties, which are faster to impose and don’t require criminal proceedings. Furthermore, these penalties are still substantial enough to deter most infringers.

Typical Administrative Consequences:

• Confiscation of Goods – All infringing products are seized permanently
• Destruction Costs – Infringers pay for destroying counterfeit goods
• Administrative Fines – Up to 30% of goods’ declared value
• Storage Fees – Costs for detaining goods during investigation
• Record Keeping – Violations recorded in trader’s compliance history

Criminal Penalties (Serious Cases)

When cases reach criminal thresholds, the consequences become much more severe. Moreover, criminal records can permanently affect individuals’ and companies’ business operations.

Criminal Consequences May Include:

• Prison Sentences – Up to 7 years for large-scale operations
• Substantial Fines – Often many times the value of infringing goods
• Asset Forfeiture – Seizure of profits and related assets
• Business Bans – Prohibition from certain business activities
• Reputational Damage – Public criminal records affecting business relationships

International Legal Alignment: WTO TRIPS Compliance

China’s IP enforcement laws align with international standards, particularly the World Trade Organization’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Furthermore, this alignment ensures that foreign businesses receive equivalent protection to domestic companies.

“China’s IP laws emphasize territorial protection, meaning only IP rights registered in China receive Customs protection, consistent with international legal principles.”

However, this territorial principle means you must secure proper Chinese registration before expecting Customs protection. Therefore, early trademark and patent registration in China is crucial for effective brand protection.

How YCIP Can Help Protect Your Business

At Yucheng IP Law (YCIP), we specialize in helping international businesses navigate China’s complex IP landscape and maximize their Customs enforcement protection. Moreover, our team combines deep legal expertise with practical experience in Chinese IP enforcement.

Our Comprehensive IP Protection Services

We understand that effective IP protection requires more than just legal knowledge. Additionally, successful enforcement demands strategic planning, cultural understanding, and strong relationships with Chinese authorities.

Customs Registration and Recordation Services

Our experienced team handles every aspect of the IP recordation process, ensuring your rights are properly protected from day one. Furthermore, we’ve helped hundreds of businesses successfully register their IP with GACC.