Article 28 Where the Customs conducts an investigation on the goods suspected of infringement while failing to confirm whether the goods infringe the relevant IPR or not, it shall notify the IPR holder and the consignees or consignors in writing within 30 working days upon detainment of the said goods.

Where the Customs fails to confirm whether the goods infringe the relevant IPR or not, the consignees or consignors may request the Customs to release the goods after providing a guarantee equivalent to the value of the goods. If the Customs agrees to release the said goods, it shall handle the issue according to the provisions of Paragraph 2 and 3 of Article 20 herein.

Article 29 Where the Customs fails to confirm whether the relevant goods infringe the IPR of the IPR holder, the IPR holder may apply to the People's Court for taking measures for ordered termination of infringement or property preservation according to Article 23 of the Regulations.

The Customs that has received the written notice of the People's Court on assistance in detaining the relevant goods within 50 working days upon detainment of the goods suspected of infringement shall give assistance. If the Customs has not received the notice of the People's Court on assistance to detainment or the IPR holder request the Customs to release the relevant goods, the Customs shall release the said goods.

Article 30 Where the Customs has made the decision on confiscating the infringing goods, it shall notify the IPR holder of the following information that is known in writing:

(1) The name and amount of the infringing goods;

(2) The name of the consignees or consignors;

(3) The declared import or export date of the infringing goods, the date of the detainment by Customs and the date when the punishment becomes effective;

(4) The leaving and arrival places of the infringing goods; and

(5) Other information concerning the infringing goods that the Customs may provide.

If the People's Court or the competent IPR department needs the assistance of the Customs in obtaining any evidence relevant to the imported or exported goods when handling the infringement disputes of the parties concerned, the Customs shall give assistance.

Article 31 In case the Customs finds any articles carried or mailed in or out the border by an individual are suspected of infringing the IPR as prescribed in Article 2 of the Regulations and beyond the personal use and the reasonable amount, it shall detain such articles, unless the passenger or receiver or sender announces abandonment to the Customs with consent by the Customs.

The IPR holder shall give assistance when the Customs is conducting investigation on the infringing articles. If the inward/outward passengers or the receivers or senders of posts believe their articles detained by the Customs do not infringe the relevant IPR or are for personal use, they may give a written statement thereof to the Customs and provide relevant evidence.

Article 32 Where the imported or exported goods or entering or existing articles have infringed any IPR as confirmed by the Customs through investigation, such goods or articles shall be confiscated by the Customs in accordance with the provisions of Paragraph 1 of Article 27 and Article 28 of the Regulations, while if it is impossible to find out the parties concerned, the Customs may confiscate the said goods or articles three months from the date of announcement by the Customs.

Where the import and export infringement practices are suspected of any crime, the Customs shall transfer the case to the public security authority.

Chapter V. Disposal of Goods and Expenses Thereof

Article 33 The Customs shall according to the following provisions dispose of the infringing goods confiscated:

(1) If the relevant goods may be directly used for public welfare undertakings or the IPR holder intends to purchase them, the goods shall be transferred to the relevant public welfare institutions for public welfare undertakings or to the IPR holder with compensation;

(2) If the relevant goods cannot be handled according to the preceding paragraph and their infringement features may be removed, they shall be auctioned according to law after elimination of the infringing features. The proceeds from auction of such goods shall be submitted to the treasury; or

(3) If the relevant goods cannot be handled according to the preceding two paragraphs, they shall be destroyed.

The Customs shall solicit opinions from the relevant IPR holder before auction of the infringing goods. The IPR holder shall give necessary assistance to the Customs in destroying the infringing goods. Where the relevant public welfare institutions use the goods confiscated by the Customs for public welfare undertakings or the IPR holder receives the entrustment of the Customs to destroy the infringing goods, the Customs shall conduct necessary supervision.

Article 34 Where the Customs assists the People's Court in detaining the goods suspected of infringement or releasing the detained goods, the IPR holder shall pay the expenses of warehousing, safekeeping and disposal of the goods during their detainment at the Customs.

Where the Customs confiscates the infringing goods, the IPR holder shall pay the expenses of warehousing, safekeeping and disposal of the goods according to the actual storage time of the said goods after detainment by the Customs. If the Customs fails to dispose the infringing goods within three months upon sending of its decision on confiscation of the goods to the consignees or consignors and such failure is not due to the application of administrative reconsideration or filing of administrative proceedings by the consignees or consignors, or other special reasons in the respect of disposal of goods, the IPR holder is not required to pay the relevant expenses three months later.

Where the Customs auctions the infringing goods in accordance with Item (2) of Paragraph 1 of Article 33 herein, the expenses for auction shall be handled according to the relevant provisions.