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Announcement No. 31, 2006 of General Administration of Customs
POSTED: 8:55 p.m. EDT, August 30,2006
In accordance with Article 14 in The Regulation of the People''s Republic of China on the Customs Protection of Intellectual Property Rights (hereinafter referred to as Regulation for short) and Article 22 in the Measures for Implementation of The Regulation of the People''s Republic of China on the Customs Protection of Intellectual Property Rights (hereinafter referred to as the Measures for Implementation for short), an intellectual property rights holder could provide the customs with a total guaranty in accordance with laws.

In order to implement the related regulations in the Measures for Implementation, and in order to make it convenient for the intellectual property rights holder to apply intellectual property rights protection measures from the Customs, matters concern the total guaranty of the customs protection of intellectual property rights are notified as follows:

I. The intellectual property rights holder, applying to the Customs for many times to detain the suspected infringing goods in accordance with Article 16 of the Regulation in a certain period, could apply for the total guaranty of the customs protection of intellectual property rights (hereinafter referred to as the total guaranty for short)
II. The intellectual property rights holder, applying for the total guaranty, shall submit written application (See Appendix 1 for a sample), with the total guaranty letter issued by banks as the guarantor (See Appendix 2 for a sample) and bill for storage and disposal (See Appendix 3 for a sample), to the Customs.
III. The amount of the total guaranty shall be the sum of storage and disposal fees if the detainment occurs, or RMB 200, 000 in other cases. The period of validity of the total guaranty letter shall be from the issuance date to June 30 of the next year.
IV. As from the approval date of the total guaranty to December 31 of the year, the detainment application shall be exempted from guaranty. Whereas the storage and disposal fees shall be paid by the intellectual property rights holder in accordance with Article 31 in the Measures for Implementation. Any loss from inappropriate application, the intellectual property rights holder shall undertake the liabilities by itself.
V. The General Administration of Customs could inform in written forms to the intellectual property rights holder to pay no more than the guaranty amount to the related Customs within 10 days, if any of the following situations occurs:
1. The intellectual property rights holder failed to pay the related fees, in accordance with Article 31 of the Measures for Implementation, within 10 days from the arrival of the written notice on payment requirement.
2. The intellectual property rights holder failed to undertake the liabilities in accordance with Article 29 of the Regulation, and the people''s court request the Customs to help conduct the ruling within the validity period of the total guaranty letter.
VI. The Announcement shall be implemented as from July 1, 2006.

Appendix:
1. The Application of the Total Guaranty of the Customs Protection of Intellectual Property Rights (Sample)
2. Total Guaranty Letter (Sample)
3. Bill for Storage and Disposal (Sample)
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