Article 19 Consignees or consignors maintaining that detained goods do not in fact infringe on the intellectual property rights of the applicant may apply for clearance of the goods after relinquishing a bail bond equal to two times the CIF price of the imported goods, or two times the FOB price of exported goods.

Article 20 When detaining suspected infringing goods under the procedures described in

Articles 17 and 18 of these Regulations, Customs must conduct an investigation within 15 days following the actual detention of the goods unless any parties involved have submitted the infringement dispute to the appropriate intellectual property rights agency for handling, or has instituted action concerning the dispute in the people's court.
When suspecting any form of criminal activity in relation to intellectual property rights infringements, Customs shall alert the appropriate agency for further investigation.

Article 21 The intellectual property rights owner should afford all necessary assistance to Customs officials conducting an investigation of the suspected infringing goods in detention, and all other relevant matters.

Article 22 The Customs may release the suspected infringing goods in detention under any of the following circumstances:
 (1) if an investigation by Customs or an appropriate intellectual property rights agency has eliminated any suspicion of infringement;
 (2) if the people's court, by judgment or order, has eliminated any suspicion of infringement;
 (3) if parties involved in the dispute failed to initiate action in the people's court prior to the specified deadline, or if the people's court refuses to hear the case, or if the people's court fails to issue an order to adopt property preservation measures;
 (4) if the intellectual property rights owner fails to file a reply within the specified period of time, or if the said owner relinquishes Customs protection of intellectual property rights.

Article 23 Suspected infringing goods in detention later found by Customs, or by an appropriate intellectual property rights agency, or by the people's court to be infringing goods shall be confiscated by Customs.

Article 24 Customs shall handle confiscated goods in accordance with the following provisions in the light of differing circumstances:
 (1) goods infringing copyrights shall be destroyed;
 (2) goods infringing rights to exclusive use of a trademark shall be destroyed if the infringing trademark cannot be removed from the goods; in cases when the trademark can be removed and the goods are still useable, the goods shall, after the trademark has been properly destroyed, be used for public service, or sold at public auction for the personal use of persons other than the infringer;
 (3) infringing goods other than those prescribed in the two preceding paragraphs shall be dealt with in accordance with relevant regulations of the State Council.

Article 25 Once decisions by Customs, a relevant intellectual property rights agency, or a judgment or order of the people's court take effect, any bail bond posted to Customs by concerned parties shall be returned after subtraction of the following fees:
 (1) warehousing, storage, disposal and other relevant fees applying to said goods;
 (2) compensation paid to interested parties for goods detained due to an unjust application filed by the applicant for Customs protection.

Article 26 Civil disputes between intellectual property rights owners and consignees or consignors of the goods shall be resolved by litigation, arbitration or other lawful means selected at the discretion of the parties involved. Customs bears no responsibility for civil cases.

Article 27 Customs shall be free from any responsibility and the intellectual property rights owner shall bear full responsibility if Customs, due to inaccurate information provided by the said intellectual property rights owner, fails to locate the infringing goods, or fails to commence applications for protection of intellectual property rights in a timely manner or takes improper measures to protect the intellectual property after accepting the record of intellectual property rights protection and the application for adopting measures to protect intellectual property rights.
 
Chapter V Legal Responsibility

Article 28 In cases when a consignee or consignor was aware or should otherwise have been aware that their goods infringed on the intellectual property rights of another party, Customs may fine said consignee or consignor an amount not more than the CIF price for imported goods or the FOB price for exported goods.

Article 29 If a consignee or consignor fails to honestly declare the status of intellectual property rights related to imported or exported goods, or fails to submit relevant verification certificates, Customs may fine the consignee or consignor an amount not more than the CIF price for imported goods or the FOB price for exported goods.

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