(Adopted at the Executive Meeting of the General Administration of Customs onApril 22, 2004, , promulgated by Decree No.114 of the General Administration ofCustoms on May 25, 2004, and effective as of July 1, 2004)

Chapter I General Provisions

Article 1 These Rules are formulated in accordancewith the Customs Law of the People’s Republic of China and other laws andadministrative regulations，inorder to implement effectively the Regulations of the People’s Republic ofChina on Customs Protection of Intellectual Property Rights (hereinafterreferred to as the “Regulations”).

Article 2 Where any holder of intellectual propertyright requests the Customs to take protection measures for his intellectualproperty rights or goes through procedures of Customs Protective Recordation of IntellectualProperty Rights with theGeneral Administration of Customs, he is entitled to lodge the application,directly or entrust an agent established in mainland China on his behalf, oncondition that he is located in mainland China,. Where such holder ofintellectual property right is located outside mainland China, he shall entrust either his liaison officeor an agent, both are established in mainland China, to lodgethe application on his behalf.

Where the holder of intellectual property right entrusts an agentestablished in mainland China to present his application inaccordance with the preceding paragraph, he shall produce a power of attorney ina prescribed form.

Article 3 When the holder of intellectual propertyright or his agent (hereinafter collectively referred to as the holder ofintellectual property right) discovers that the suspected infringing goodspending to import or export, he may apply to the Customs for detention of suchgoods in accordance with the provisions in Chapter?3 of theseRules.

Where the relevant goods are suspected of infringing an intellectualproperty right that have been recorded with the General Administration ofCustoms, the holder of intellectual property right may report to the Customs andapply for detaining such suspected infringing goods by the Customs in accordancewith the provisions in Chapter 4 of these Rules.

Article 4The consignor or consignee of import orexport goods or his agent (hereinafter collectively referred to as the consignoror consignee) shall, to a reasonable extent, have knowledge of the intellectualproperty right status of his import or export goods. If the status ofintellectual property right related to his import or export goods is obliged tobe declared, the consignor or consignee shall make such declaration and presentany relevant evidentiary documents truthfully to theCustoms.

Article 5If any commercial secrets are involved inthe relevant documents or evidence presented to the Customs by either holder ofintellectual property right, or the consignor or consignee, an explanation ofsuch secrets in writing shall be presented to the Customs by the holder ofintellectual property right, or the consignor orconsignee.

The Customs shall keep the confidentiality of the commercial secrets ofrelevant parties when operating protection of intellectual property rights. Butthe information which the Customs are obliged to disclose in accordance with lawshall not be included.

Chapter IIRecordation ofIntellectual Property Rights

Article 6?Whengoing through the procedures of Customs Protective Recordation of IntellectualProperty Rights, the holder of intellectual property right shall present anapplication in a prescribed form to the General Administration ofCustoms.

The holder of intellectual property right shall present a separateapplication form for each of his intellectual property rights for which therecordation is applied. Where applying for recordation of an InternationalRegistered Trademark, the holder of intellectual property right shallpresent a separate application form forrecordation of each class of commodities covered.

Article 7 The holder of intellectual property rightshall attach the following documents and evidence when he presents theapplication for recordation to the General Administration of Customs,:

(1)A photocopy of personalidentification document, or business license or other documents which identifiesthe holder of intellectual property right;

(2)A photocopy of theTrademark Registration Certificate issued by the Trademark Office of the StateCouncil’s industry and commerce authority, the documents confirming trademarkregistration issued by the Trademark Office of the State Council’s industry andcommerce authority shall be presented in addition where the applicant has beenpermitted to change, renew, transfer the trademark registration or apply forrecordation of an International Registered Trademark;

A photocopy of the certificate of voluntary copyright registration issuedby the copyright registration authority, or the photographs of the worksconfirmed by the copyright registration authority. Where the applicant has notcarried out the procedures for voluntary copyright registration of his works, asample of his works or other evidence which can prove his ownership of thecopyright shall be presented;

A photocopy of the patent certificate issued by the State Council’spatent authority. Where the grant of patent has been announced more than oneyear, a duplicate of the patent register issued, within six months prior to theapplication for recordation, by the State Council’s patent authority. Whereapplying for the recordation of an utility model or a design, a photocopy ofsearch report of the utility model or a photocopy of announcement of designissued by the State Council’s patent authority shall also bepresented;

(3)A photocopy of acontract of licence shall be presented where the holder of intellectual propertyright has licensed other parties to use a registered trademark, a work or apatent and a contract of license has been reached. Where no written licence hasbeen reached, a document explaining the details of scope, term of the license,etc. shall be presented;

(4)The photographs of goodsand their package on which the holder of intellectual property right lawfullyexercised his rights;

(5)The evidence of theknown import or export of infringing goods; Where any infringement disputebetween the holder of intellectual property right and other party has beensettled by a People’s Court or by the competent intellectual property rightauthority, a photocopy of the relevant legal document shall also be presented;and

(6)Any other documents orevidence that the General Administration of Customs considers necessary topresent.

The documents and evidence presented by the holder of intellectualproperty right to the General Administration of Customs in accordance with thepreceding paragraph shall be complete, truthful and valid. Where the relevantdocuments and evidence are in a foreign language, they shall be accompanied by aChinese translation. Where the General Administration of Customs deemsnecessary, it may require the holder of an intellectual property to presentnotarization or certification of the relevant documents orevidence.

Article 8 Theholder of an intellectual property shall make payment of recordation fee whilehe applies to the General Administration of Customs for the Customs ProtectiveRecordation of intellectual property right. The holder of intellectual propertyright shall attach a photocopy of credence of remittance of the recordation feewhen he presenting the application for recordation to the General Administrationof Customs.

The rate of recordation fee shall be prescribed and announced by theGeneral Administration of Customs in conjunction with relevant authorities ofState.

Article 9 The Customs Protective Recordation of intellectual property right shallenter into effect on the date of approval by the General Administration ofCustoms and be valid for a term of 10 years. Where the term of the intellectualproperty right is less than 10 years from the effective date of the recordation,the recordation term of an intellectual property right shall be in conformitywith the term of the intellectual property right.

The terms of recordation and renewed recordation approved by the GeneralAdministration of Customs prior to the effectiveness of Regulations shall remainto be calculated in accordance with their originalterms.

Article 10 The holder of intellectual property rightmay, within six months prior to the expiration of the recordation term of theCustoms protection of intellectual property right, apply for renew ofrecordation by presenting a written application together with relevant documentsto the General Administration of Customs. Where the General Administration ofCustoms approves the renewal of the recordation, it shall notify the holder ofintellectual property right in writing; where it disapproves the renewal, itshall notify the holder of intellectual property right in writing and explainthe reason thereof.

The term of the renewed recordation shall be 10 years, calculated fromthe day following the expiration of the previous recordation term. Where theterm of the intellectual property right is less than 10 years from the dayfollowing the expiration of the previous recordation term, the renewalrecordation term of the intellectual property right shall be in conformity withthe term of the intellectual property right.

Article 11 The holder of intellectual property rightshall, within 30 working days from the date of change occurs, apply to theGeneral Administration of Customs for amending the Customs protectiveRecordation of intellectual property right and presents relevant documents,where any change occurs to the following information of the intellectualproperty right recorded:

(1) The name of the holder ofintellectual property right;

(2) The commodities on which theregistered trademark has been used;

(3) The information of licensedusing the registered trademark, work or patent;

(4) The information of address,contact person, telephone number, etc. of the holder of intellectual propertyright; and

(5) Any other particularsspecified in Article 7 of these Regulations.

Article 12 In any of thefollowing circumstances, the holder of intellectual property right shall, within30 working days from the date of the change in the recorded intellectualproperty right, apply to the General Administration of Customs for cancellationof the Customs Protective Recordation of intellectual property right and presentrelevant documents:

(1)The intellectualproperty right ceases to be protected by laws and administrative regulationsprior to the expiration of the recordation term; or

(2)The recordedintellectual property right is transferred.

Where either of the circumstances specified in the preceding paragraphoccurs, the General Administration of Customs may cancel the recordation of therelevant intellectual property right on its own initiative or against theapplication of any party interested.

The holder of intellectual property right may apply to the GeneralAdministration of Customs for cancellation of the recordation if he decides toabandon any recordation during the recordationterm.

The General Administration of Customs shall notify the relevant holder ofintellectual property right in writing of cancellation of any recordation. Therecordation shall become invalid since the date of cancellation by the GeneralAdministration of Customs.

Article 13 Where the General Administration of Customsdecide to revoke a Customs protective Recordation of intellectual property rightin accordance with Article 9 of Regulations, the holder of intellectual propertyright shall be notified in writing.

The General Administration of Customs has the authority to refuse theapplication for recordation lodged, within one year from the date of therevocation of the intellectual property right recordation by the relevant holderof intellectual property right, by the holder of intellectual property right forthe relevant intellectual property rights which the recordation thereof has beenrevoked.

Chapter IIIDetention pursuant toan Application

Article 14 Where the holder of intellectual propertyright discovers the suspected infringing goods pending to import or export andrequest the Customs to detain the goods, he shall lodge an application, inaccordance with Article 37 of Regulations, to the port Customs where the goodspending to import or export. In addition, the holder of intellectual propertyright shall present the documents and evidence specified in items (1) and (2) ofthe first paragraph of Article 7 of these Rules where the relevant intellectualproperty right has not been recorded with the General Administration ofCustoms.

The holder of intellectual property right shall provide sufficientevidence proving the obvious existence of the fact of infringement to theCustoms as well when he requests the Customs to detain the suspected infringinggoods. The evidence provided by the holder of intellectual property right shallbe sufficient to prove the following facts:

(1)The goods requested tobe detained by the Customs are pending to import or export;and

(2)The trademark, works orpatent have been used on the relevant goods without the consent of the holder ofintellectual property rights.

Article 15 Where applying for detaining the suspectedinfringing goods by the Customs, the holder of intellectual property right shalldeposit, within the period specified by the Customs, a security equivalent tothe value of the goods with the Customs.

Article 16 The holder of intellectual property rightmay, provided that he has lodged the application in accordance with Article 14and deposited the security in accordance with Article 15 of these Rules, requestto inspect the suspected infringing goods before the Customs perform thedetention.

The holder of intellectual property right may, upon approval of theCustoms, revise or withdraw his application on condition that the suspectedinfringing goods have not been detained by the Customs.

Where the application lodged by the holder of intellectual property rightfails to be in conformity with Article 14, or the security fails to be depositedin conformity with Article 15 of these Rules, the Customs shall refuse theapplication and notify the holder of intellectual property right in writing ofsuch refusal.

Article 17 The Customs, where detaining the suspectedinfringing goods, shall notify the holder of intellectual property right inwriting of such details as description, quantity and value of the goods, name ofthe consignor or consignee, date of import or export declaration and detention,etc.

The holder of intellectual property right may apply, in accordance withArticle 23 of Regulations, to the People’s Court for a ruling of ceasinginfringing act or a ruling of property preservation. The Customs shall provideassistance where they receive, within 20 working days from the date on which theCustoms detain the suspected infringing goods, a written petition from thePeople’s Court for assisting to enforce the ruling; Otherwise, the Customs shallrelease the goods.

Article 18 When the Customs detain the suspectedinfringing goods, they shall serve a written notification of detention of thesuspected infringing goods and a Customs Detention Receipt on the consignor orconsignee. Upon the approval of the Customs, the consignor or consignee mayinspect the relevant goods.

If the consignee or consignor believes that his import or export goods donot infringe the relevant intellectual property right, he shall, within 20working days from the date on which the goods are detained by the Customs,present to the Customs a written explanation together with the necessaryevidence. If the consignor or consignee requests the Customs to release thegoods suspected of infringing a patent, he shall present a written applicationfor releasing the goods and deposit a security equivalent to the value of thegoods to the Customs in addition.

Article 19 The Customs shall release the goods andnotify the holder of intellectual property right in writing provided that theconsignor or consignee requests the Customs to release the goods suspected ofinfringing the patent and such request is in conformity with the secondparagraph of Article 18 of these Rules.

The holder of intellectual property right shall present a photocopy ofnotice of accepting case from the People’s Court to the Customs within 30working days from the date when the written notification, specified in thepreceding paragraph, from the Customs has been served where he has brought alawsuit before the People’s Court in respect of the dispute of patentinfringement.

Chapter IVEx Officio Action

Article 20 Where the Customs discover, when performingsupervision and control over import or export goods, any import or export goodssuspected of infringing a recorded intellectual property right recorded with theGeneral Administration of Customs, they shall immediately notify the holder ofintellectual property right.

Article 21 The holder of intellectual property rightshall, within three working days from the date when the written notification,specified in Article 20 of these Rules, from the Customs has been served,response in accordance with the followingprovisions:

(1)To lodge a writtenapplication to the Customs for detaining the suspected infringing goods anddeposit a security in accordance with Article 22 of these Rules where believingthat the relevant goods have infringed his intellectual property right recordedwith the General Administration of Customs and requesting he Customs to performdetention, or

(2)To explain the reasonsto the Customs in writing. where believing that the relevant goods have notinfringed his intellectual property right recorded with the GeneralAdministration of Customs or not requesting the Customs to performdetention.

Upon the approval of the Customs, the holder of intellectual propertyright may inspect the relevant goods.

Article 22Where requesting the Customs to detain thesuspected infringing goods in accordance with item (1) of the first paragraph ofArticle 21 of these Rules, the holder of intellectual property right shalldeposit a security with the Customs in accordance with the followingprovisions:

(1)Where the value of goodsis below RMB 20,000 Yuan, a security equivalent to the value of the goods is tobe deposited;

(2)Where the value of goodsis above RMB 20,000 Yuan but below RMB200,000 Yuan, a security equivalent to 50%of the value of the goods shall be deposited. But the minimum amount of thesecurity shall not be less than RMB 20,000 Yuan; or

(3)Where the value of goodsis above RMB 200,000 Yuan, a security of RMB￥100,000 shall bedeposited.

Upon the approval of the Customs, the holder of intellectual propertyright may provide a general security with the Customs. The minimum amount ofsuch general security shall be RMB 200,000 Yuan.

Article 23 Where the holder of intellectual propertyright has applied for detention of the suspected infringing goods in conformitywith item (1) of the first paragraph of Article 21 of these Rules and depositeda security in accordance with Article 22, the Customs shall detain the suspectedinfringing goods and notify the holder of intellectual property right inwriting; The Customs shall release the goods where neither application has beenlodged nor security has been deposited.

Article 24 Where detaining the suspected infringinggoods, the Customs shall serve on the consignor or consignee a writtennotification of detaining the suspected infringing goods and a Customs DetentionReceipt. The consignor or consignee may inspect the relevant goods upon theapproval of the Customs.

The consignor or consignee shall present, within the period of Customs’investigation into the suspected infringing goods, a written explanationtogether with necessary evidence to the Customs where he believes that hisimport or export goods do not infringe the relevant intellectual property right.If he requests the Customs to release the goods suspected infringing a patent,he shall, within 50 working days from the date on which the goods are detainedby the Customs, present to the Customs a written application for releasing thegoods and provide a security equivalent to the value of thegoods.

Where the consignor or consignee lodges a request, which is in conformitywith the preceding paragraph, to the Customs for releasing the goods suspectedof infringing a patent, the Customs shall handle the matter in accordance withArticle 19 of these Rules. While the goods are determined as of infringing thepatent by the Customs investigation, the Customs shall handle the matter inaccordance with Article 27 of these Rules.

Article 25 The Customs shall, in accordance with law,perform investigation into the suspected infringing goods as well as otherrelevant circumstances after they have detained the suspected infringing goods.

The consignor or consignee and the holder of intellectual property rightshall cooperate in the Customs investigation and shall truthfully providerelevant information and evidence.

When investigating into the suspected infringing goods, the Customs mayrequest the relevant competent authorities of intellectual property right toprovide advice.

Article 26 The Customs shall, within 30 working daysfrom the date on which the suspected infringing goods are detained, inform theholder of intellectual property right in writing of any of the followingconclusions of investigation:

(1) The goods are determined as of infringementof relevant intellectual property right;

(2) Evidence provided by theconsignor or consignee is regarded as sufficient to prove that the goods do notinfringe the relevant intellectual property right;or

(3) The Customs cannot determinewhether the goods infringe the relevant intellectual property right ornot.

Article 27 Where the Customs cannot determine whetherthe goods infringe the intellectual property right or not, the holder ofintellectual property right may apply to the People’s Court for a ruling ofceasing infringing act or a ruling of property preservation in accordance withArticle 23 of Regulations.

The Customs shall provide assistance where the Customs receives apetition for assistance in enforcing either the ruling of ceasing infringing actor the ruling for property preservation from the People’s Court within 50working days from the date on which the suspected infringing goods are detained.Otherwise, the goods shall be released.

Article 28 Where the Customs have decided to confiscate infringing goods, the holderof intellectual property right shall be informed in writing of the followingknown details:

(1) Description and quantity ofinfringing goods;

(2) Name of the consignor orconsignee;

(3) Date of import or exportdeclaration of the infringing goods, date of detention by the Customs and dateof effectiveness of the Customs’ punishmentdecision;

(4) Place of departure anddestination of the infringing goods; and

(5) Other information relating tothe infringing goods that the Customs can provide.

Where the People’s Court or another competent intellectual property rightauthority, when handling an infringement dispute between the relevant parties,requires any assistance from the Customs in obtaining evidence relating to theimport or export goods, the Customs shall provide suchassistance.

Article 29 The Customs shall detain the inward or outward articles carried or mailedby individuals which are both in excessof the reasonable quantity for personal use and suspected of infringing theintellectual property right specified in Article 2 of Regulations. The articlesshall be confiscated if determined as ofinfringement bythe Customs after investigation.

The holder of intellectual property right shall provide assistance to theCustoms when they are operating investigation into the infringingarticles.

Chapter VDisposal of Goods andRelevant Expenses

Article 30 The goods confiscated by the Customs shall be disposed of in accordancewith the following provisions:

(1)Where the relevant goodscan be directly used for public welfare undertakings or if the holder ofintellectual property rightintends topurchase the goods, they shall be handed over to the relevant public welfareorganization for use in public welfare undertakings or transferred to the holderof intellectual property right with compensation;

(2)Where the relevant goodscannot be disposed of in accordance with item (1) but the infringing featurescan be removed, the goods shall be auctioned after removal of the infringingfeatures; the money obtained from the auction of the goods shall be turned overto the national treasury; or

(3)Where the relevant goodscannot be disposed of in accordance with item (1) or (2), they shall bedestroyed.

The holder of intellectual property right shall provide necessaryassistance when the Customs destroy infringing goods. When the relevant publicwelfare organization uses the infringing goods confiscated by the Customs inpublic welfare undertakings or the holder of intellectual property right assiststhe Customs in destroying the infringing goods, the Customs shall exercise thenecessary supervision.

Article 31 In either casesthat he Customs assist the People’s Court in enforcing a ruling of ceasinginfringing act or a property preservation order, or release detained goods, theholder of intellectual property right shall pay the expenses for warehousing,maintenance, disposal, etc., of the goods during the period they are detained bythe Customs.

If the Customs confiscates the infringing goods, the holder ofintellectual property right shall pay the expenses for warehousing, maintenance,disposal, etc. of the goods for the actual period of time they are stored aftertheir detention by the Customs. However, if the Customs fails to complete thedisposal of the goods within three months from the date on which the decision toconfiscate the infringing goods is served on the consignor or consignee, andsuch failure is not due to the consignor or consignee applying foradministrative reconsideration, filing administrative proceedings or otherspecial reason relating to the disposal of the goods, the holder of intellectualproperty rightshall not be required topay the relevant expenses incurred after the threemonths.

If the Customs auctions the infringing goods in accordance with item (2)of the second paragraph of Article 30 of these Rules, the auction expenses shallbe handled in accordance with relevant regulations.

Article 32Where the holder of intellectualproperty right fails to pay the relevant expenses in accordance with Article 31of these Rules, the Customs shall be entitled to deduct the relevant expensesfrom the security provided by the holder of intellectual property right ordemand that the guarantor perform its guaranteeobligations.

Where the Customs confiscates infringing goods, the Customs shall refundthe security to the holder of intellectual property rightor release the guarantee liabilities afterdisposal of the goods has been completed and the relevant expenses have beensettled.

Where the Customs assists in the enforcement of a ruling of an order tocease the infringing act or a property preservation from the People’s Court, orreleases detained goods, and does not receive a notice from the People’s Courtfor assistance in enforcing the security provided by the holder of intellectualproperty rightwithin 20 working daysfrom the date on which the Customs assists in the enforcement of the relevantruling of the People’s Court or releases the detained goods, it shall refund thesecurity to the holder of intellectual property right ; if it receives apetition for assistance in enforcement, it shall provide suchassistance.

Article 33 Where the holder of intellectual propertyright , in accordance with the second paragraph of Article 19 of these Rules,presents to the Customs a photocopy of the notice of accepting the case from thePeople’s Court’s after the Customs, in accordance with the first paragraph ofArticle 19, release the detained goods suspected infringing patent, the Customsshall, in accordance with the notice of the People’s Court for assistance inenforcing the relevant judgment or ruling, dispose of the security provided bythe consignor or consignee; if the holder of intellectual property right failsto present a photocopy of the notice of accepting the case from the People’sCourt, the Customs shall refund the security to the consignor or consignee.

Chapter VI Supplementary Provisions

Article 34 In these Rules,the term “security” means cash or a guarantee provided by a bank or otherfinancial institution.

Article 35 The value of goods in these Rules shall beexamined and determined by the Customs on the basis of the transaction value ofthe goods. If the transaction value cannot be determined, the value of goodsshall be estimated by the Customs in accordance withlaw.

Article 36 Where the holder of intellectual propertyright or a consignor or consignee is to present a photocopy of a relevantdocument to the Customs pursuant hereto, he shall verify such photocopy againstthe original. Once the photocopy has been verified as being in order, the words“True Copy” shall be noted on the photocopy, which shall then be signed and/orsealed in confirmation.

Article 37These Rules shall go into effect as of July1, 2004.The Rules of the Customs ofthe People’s Republic of China Concerning Implementing Protection ofIntellectual Property Rights (ref. Decree No. 54 of the GeneralAdministration of Customs) shall be repealedsimultaneously.

ANNEXES:

1. Application form of Customs Protective Recordation of Trademark Rights(Templet)

2. Application form of Customs Protective Recordation of Patent Rights(Templet)

3. Application form of Customs Protective Recordation of Copyright(Templet)

4. Power of Attorney for Customs Protective Recordation of IntellectualProperty Rights (Templet)