How should unregistered brand goods be handled when traced by the rights holder? (Cross-border e-commerce sellers, please take note!)

Goods from unregistered brands are being traced back by rights holders. The core processing logic involves first securing the scene, then gathering evidence, and finally resolving the issue along different paths: urgently addressing customs detentions and rights-holder complaints, swiftly verifying the ownership of rights and the compliance of authorizations, and following appropriate procedures—whether it’s a compliance defense, settlement, or loss-control measures—depending on whether infringement has occurred. At the same time, we’ll ensure thorough risk prevention and control for the future. Next, Huijetong will provide you with a detailed explanation; we hope this will be helpful to you.

　　I. Emergency Response: Contain and Limit Losses Within 48 Hours

　　Acknowledge receipt and verify procedural compliance.

　　Upon receipt of the customs detention notice or the rights holder’s lawyer’s letter, immediately confirm the detention procedure: The rights holder must submit a written application and provide a guarantee within 3 working days after the notice is served before customs is authorized to detain the goods. If no guarantee is provided or the application is submitted after the deadline, an objection may be filed with customs to request release of the goods.

　　Record key time points: the date of detention initiation, the investigation period (customs shall complete the determination within 30 working days from the date of detention; if a determination cannot be made, the rights holder must be notified in writing), and the deadline for court preservation (if no notice of court assistance in seizure is received within 50 working days after detention, an application for release may be filed).

　　Avoid handling goods on your own initiative (such as returning shipments or changing ports of destination) to prevent being labeled as “maliciously evading” regulations and facing harsher penalties.

　　Initiate internal investigation and evidence preservation.

　　Organize the cargo chain: procurement contracts, invoices, authorization documents (including multi-level sub-authorization), trademark/patent certificates, customs declarations, waybills, and photos of packaging and hangtags. Ensure that all information is consistent, with particular emphasis on verifying that the brand name, model number, LOGO, and declared content match each other.

　　Distinguish among three core scenarios: (1) a complete chain of authorization exists (including notarized documents/translated copies); (2) no authorization exists but the item is not counterfeit (e.g., similar private-label products or fair use); (3) infringement is confirmed (assess the value of the goods and the cost of penalties, and prepare to minimize losses).

　　Coordinate with the logistics agent and customs broker to confirm cargo warehousing and port detention fees, thereby avoiding high additional costs due to overdue storage.

　　II. Core Handling Approach: Precisely Respond Based on “Infringement / Non-Infringement”

　　Path 1: Genuine authorization or non-infringement — Compliance defense + Application for clearance

　　Submit a complete chain of compliance evidence.

　　If you are the rights holder: Provide proof of rights, such as a trademark registration certificate, patent certificate, or copyright registration certificate, in lieu of a letter of authorization. If you are the authorized party: Submit a letter of authorization (including sub-authorization), proof of the authorizer’s identity, notarized documents, and Chinese translations (for documents not originally in Chinese), ensuring that the scope of authorization is clearly defined (product categories, destination, and duration).

　　Supplement procurement documents, production agreements, and sales records to demonstrate that the source of the goods is lawful and that there was no intent to infringe.

　　The evidence must be fully consistent with the customs declaration and the product markings to avoid ambiguous wording (such as “all categories / indefinite authorization”) that could render it invalid.

　　Submit a written objection and release request to customs.

　　In response to a rights holder’s complaint, provide a written explanation stating the reasons why no infringement has occurred, and attach supporting evidence. If infringement cannot be determined, and no notification from the court is received within 50 working days after detention, you may formally apply for customs release.

　　In cases involving alleged patent infringement, a security deposit equal to the value of the goods may be provided to request that the goods be released first, with the security being processed after the dispute is resolved. (Securities are typically not accepted for release in cases of trademark or copyright infringement.)

　　Responding to the rights holder's lawsuit

　　After receiving the court summons, submit evidence within the evidence-gathering period and file a motion to dismiss the lawsuit. If necessary, apply for pre-litigation or in-litigation evidence preservation to prevent the loss of crucial evidence.

　　Pleading the defense of lawful origin: If you are the seller, you can be exempted from liability for damages if you can prove that the goods were lawfully obtained and identify the supplier (you must provide complete documentation of the procurement chain).

　　Path 2: Unauthorized and Suspected Infringement —— Settle to Stop Loss + Mitigate Impact

　　Assess the costs and risks of settlement.

　　Calculate the value of goods, anticipated fines, warehousing/destruction costs, and litigation expenses; compare these with the settlement amount, and prioritize the option with lower costs.

　　In cases of serious infringement and counterfeit goods, avoid delays that could lead to criminal risks (for example, sales amounts exceeding 50,000 yuan may constitute a crime).

　　Proactively negotiate a settlement

　　Issue a settlement letter to the rights holder, clearly stating the cessation of infringement, destruction/recall of goods, and compensation for losses. Strive to reach a settlement agreement whereby the rights holder withdraws the complaint, thereby avoiding further penalties from customs.

　　The settlement agreement must be confirmed in writing, stating that “the rights holder waives further pursuit of liability,” to prevent subsequent second claims.

　　Cooperate with customs processing to reduce penalties.

　　Actively admit to the infringement, cooperate with customs to have the goods confiscated or destroyed, pay a fine (typically less than 30% of the value of the goods), and strive for a lighter penalty.

　　Submit a commitment to rectification, stating that a brand compliance verification mechanism has been established to prevent future violations and reduce the likelihood of being placed on the key regulatory watch list.

　　Path 3: Ambiguous Disputes — Third-Party Mediation + Procedural Game Theory

　　Apply for customs mediation or intervention by a third-party organization.

　　Submit a mediation request to the customs authority, which will facilitate negotiations between the parties, shorten the dispute resolution period, and reduce costs.

　　In cases involving cross-border disputes, professional opinions issued by third-party institutions such as industry associations and intellectual property mediation centers can be used to assist in the determination of facts.

　　Use procedural rules to buy time.

　　If you disagree with the customs’ determination, you may file an administrative reconsideration with the next higher-level customs authority or bring an administrative lawsuit to the court, challenging either the validity of the determination procedure or the admissibility of the evidence.

　　Pay attention to the time limit for the rights holder to submit evidence. If the rights holder cannot provide complete proof of rights or evidence of infringement, they may request customs to reject the complaint.

　　III. Long-term Risk Prevention and Control: Avoiding Secondary Tracing

　　Establish a brand compliance verification mechanism.

　　Before shipping, check the brand registration status through the General Administration of Customs’ Intellectual Property Filing System, the Trademark Office’s official website, and other relevant platforms. Prioritize obtaining complete authorization to avoid the misconception that “unregistered brands are risk-free.”

　　For similar brands, OEM/ ODM Order in advance and sign an intellectual property disclaimer to clearly define the division of responsibilities.

　　Standardized Declaration and Document Management

　　The customs declaration shall accurately report the brand name and trademark type (R mark / TM mark), consistent with the markings on the goods. Retain evidence such as authorization letters and purchase contracts for at least two years for inspection purposes.

　　Multi-level authorization requires retaining proof of authorization at each level to establish a complete chain of custody. Non-Chinese documents must be notarized and translated in advance.

　　Choose a compliant logistics channel.

　　Prioritize working with agents who have experience clearing branded goods, avoid using courier channels that prohibit the shipment of counterfeit products, and reduce the risk of being blacklisted by airlines.

　　IV. Key Considerations

　　Validity of Authorization Documents: Overseas authorization letters must be notarized and accompanied by a Chinese translation. The authorization period must cover the transportation and sales cycle to avoid expiration.

　　Defense of lawful origin applies only to sellers and requires proof that the seller “did not know the goods were infringing, obtained them lawfully, and identified the supplier.” This defense does not apply to manufacturers.

　　Cross-border dispute resolution: Rules vary significantly among different countries (e.g., U.S. customs imposes stricter penalties). It’s essential to consult with local lawyers in advance to avoid compliance risks.

　　The above is all the content that Hui Jietong has shared with you this time. If you have any further service needs related to international logistics, please feel free to consult us. Hui Jie Tong Professional international logistics consultant. (Note: Any timelines and fees mentioned above are for reference only; please refer to the actual invoice for specific details. Thank you.)

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