New Customs regulation released

On June 20 the State Customs Service issued a regulation which determines the type, amount and mechanism for the provision of a deposit or equivalent guarantee to Customs by owners of IP rights or their representatives. Such securities or guarantees are required to reimburse the costs accrued by the customs authorities in the case of seizure of goods that are suspected to be counterfeit. They also act as a safeguard to cover any damage that may be suffered by the owner of the seized goods should the products prove not to be infringing. The costs for customs authorities may include the storage, loading/unloading and inspection of goods.

The guarantee should be provided by the owner of the IP right or by its representative and should be paid during the process of registration of the IP right in the Customs Register. In the case that counterfeit goods are seized at the initiative of the customs authorities, the guarantee should be provided within three days after the notification of seizure was received by the right owner.

According to the regulation the right owner has two payment options: (i) to pay a deposit, or (ii) to provide a bank guarantee to the customs authorities. The amount is fixed at €5,000. If this does not cover all the costs involved, or if part of the amount has been spent to cover costs, then the State Customs Office shall within one day notify the right owner (or its representative). The right owner or its representative must within three days after receipt of the notification reimburse all the costs and/or renew the deposit. If not, the guarantee shall be considered revoked.

Julia Semeniy, Konnov & Sozanovsky, Kiev