Action Plan and Documentation for Goods Suspected of Intellectual Property Rights (IPR) Infringement During Customs Clearance Released

The Korea Customs Service (KCS) maintains a strict stance on Intellectual Property Rights (IPR) protection for import and export goods to safeguard domestic industries and consumer rights. If your imported goods have been classified as suspected of infringing on intellectual property (such as trademarks or design rights) during inspection, the customs authorities have determined there is a possibility that the goods are counterfeit or produced without the right holder's permission. In such cases, failure to provide a prompt and accurate explanation may lead to suspension of clearance, disposal of goods, and potential legal penalties.

Procedures and Notification for Suspected IPR Infringement

When the customs office identifies goods suspected of IPR infringement, they initiate a Notice of Export/Import Facts procedure. Both the right holder (the owner of the trademark/design) and you, the importer, are notified. The right holder will submit an opinion on whether the goods infringe their rights within a specific period, while you must prove that the goods are genuine or that you have the legitimate right to use the intellectual property.

The typical processing workflow is as follows:

• IPR Identification and Notification: Customs detects suspicious goods and notifies both the right holder and the importer.
• Submission of Opinions and Evidence: The right holder submits an infringement opinion, and the importer submits explanatory materials and evidence of authenticity.
• Infringement Determination: Customs or a specialized agency determines whether an infringement has occurred based on the submitted evidence.
• Follow-up Actions: If determined to be infringing, the results include suspension of clearance, referral for investigation, and eventually disposal of the goods.

The most critical step in this process is submitting objective evidence to prove the legitimacy of your import within the deadline set by customs. If no explanation is provided or the evidence is insufficient, the goods may be deemed counterfeit and destroyed based on the right holder's opinion.

Required Documentation and Explanation Methods by Importer Type

The nature of the evidence required varies depending on whether you are a business importer or an individual buyer. For businesses, the verification process regarding licensing and rights is significantly more stringent due to the commercial nature of the import.

1. For Business Importers (Entities)

• Licensing Agreement: An official contract granting usage rights signed with the intellectual property owner.
• Authorization Letter: A document proving that you have been delegated the authority to sell and import the goods within the specific region (South Korea).
• Supply Chain Evidence: Invoices and logistics flowcharts tracing the path from the manufacturer to the importer.
• Authenticity Markers: Photographs and data of holograms, serial numbers, or other identifiers that distinguish the product as genuine.

2. For Individual Importers (Personal Use)

• Payment Records: Credit card approval history or receipts from official websites or reputable platforms.
• Sales Page Captures: Screenshots of the product page and URL where the item was explicitly sold as a genuine product.
• Correspondence with Seller: Emails or messenger logs where you confirmed the authenticity of the product with the seller.
• Price Justification: Evidence proving that the purchase price aligns with the market value and was not suspiciously low.

If the goods are clearly proven to be genuine through the submitted documents, clearance will be permitted. However, if they are finalized as infringing goods, they will be disposed of, and if intent is proven, you may face investigation for violation of the Trademark Act. Please note that even small quantities for personal use are now subject to strict disposal rules regardless of intent. We strongly recommend consulting with a professional customs broker to establish the best defense strategy for your specific situation.