My imported goods have been held at customs for intellectual property infringement. Can they be cleared simply by proving they are genuine products? Should I also check the possibility of parallel importation? Released

I understand that you are concerned because the goods you imported have been held at customs due to suspected intellectual property infringement. As per your inquiry, I will explain in detail from a customs broker's perspective whether simply proving that the goods are genuine will allow for customs clearance, and whether it is necessary to verify the possibility of parallel importation.

1. Importance and Requirements of Proving Genuine Products

One of the main reasons customs decides to hold goods due to suspected intellectual property infringement is to prevent the domestic distribution of counterfeit goods. Therefore, proving that the goods you imported are 'genuine products' that have been lawfully manufactured or distributed with the permission of the rights holder is the first and most important step to resume customs clearance.

To prove that the goods are genuine, you can prepare the following documents:

• Proof of Purchase of Genuine Products: Documents that clearly show the purchase route, such as purchase receipts, contracts, invoices, and packing lists.
• Confirmation from Manufacturer or Overseas Seller: Documents confirming that the goods were produced and distributed by a manufacturer/seller officially authorized by the rights holder (trademark holder, etc.).
• Proof of Production Location: Documents such as a Certificate of Origin to verify the production location of the goods and prove that the production location is related to the rights holder.
• Supply Chain Related Documents: Materials showing that the supply chain linking the importer-overseas supplier-manufacturer is legitimate.

If these documents prove that the goods are genuine products legally branded and distributed abroad, customs clearance is likely to be allowed. However, even if they are genuine products, an important aspect that needs further review is the possibility of 'parallel importation.'

2. Necessity of Verifying the Possibility of Parallel Importation

Even if the goods are genuine products, if they do not meet the requirements for parallel importation, customs clearance may be restricted. Parallel importation refers to the importation of specific foreign goods, already imported by an exclusive importer in the country, by a third party through different distribution channels without the permission of the domestic exclusive importer. The important point here is that they must be 'genuine products.' Counterfeit goods cannot be subject to parallel importation in the first place.

In our country, it is a principle to allow parallel importation as long as the functions of the trademark, which are 'indication of origin' and 'quality assurance,' are not damaged. However, for certain products, if there is a possibility of damaging the reputation of the trademark holder or causing consumer confusion, parallel importation may not be allowed. For example, if services such as A/S and quality assurance provided by the domestic exclusive importer are not available for parallel imported goods, causing confusion to consumers.

Therefore, even if your goods are confirmed as genuine products, it is essential to verify whether they fall under items for which parallel importation is not possible.

How to Verify the Possibility of Parallel Importation:

For items with trademark rights reported to customs, you can verify the possibility of parallel importation through the Korea Customs Service's UNIPASS system.

• Access Path: Korea Customs Service UNIPASS (https://unipass.customs.go.kr) → Information Inquiry → Customs Information → Import → Trademark Customs Declaration Information → Detailed Inquiry of Trademark Customs Declaration Information

In this path, you can check whether the possibility of parallel importation for each designated product is indicated as 'Y' or 'N' by entering the trademark name or trademark holder information.

If the trademark rights are not reported to customs, they will not be searchable in UNIPASS. In this case, it is necessary to individually determine whether the requirements for parallel importation of the trademark rights are met. This process requires legal interpretation, so it is essential to comprehensively review the position of the trademark holder or domestic exclusive importer, related precedents, and authoritative interpretations, and expert assistance is essential in this process.

3. Comprehensive Understanding and Response to Customs Hold for Intellectual Property Rights

Customs hold for goods suspected of intellectual property infringement may not be limited to trademark issues alone. Various forms of intellectual property rights infringement, such as copyright, design rights, and patent rights, may also be reviewed. Therefore, it is important for you to confirm the exact information from customs about which intellectual property rights (e.g., trademark rights) are suspected of infringement, leading to the customs hold.

If the submitted documents do not sufficiently prove that the goods are genuine products, or if they are determined to be items for which parallel importation is not possible, customs may refuse clearance of the goods and order their destruction or return. Additionally, if it is determined to be a deliberate infringement act, legal penalties under the Customs Act and related intellectual property rights laws may follow, so careful response is necessary.

In conclusion, in cases where customs clearance is held due to suspected intellectual property infringement, both 'proving that the goods are genuine products' and 'verifying the possibility of parallel importation' are essential procedures. This process requires complex and specialized knowledge, including the types of documents to be submitted, legal interpretation, and the explanation process with customs. Therefore, if you are faced with such a situation, it is strongly recommended to seek accurate situation analysis and effective response measures through consultation with a customs broker who is an expert in intellectual property rights customs clearance. The most prudent approach is to reduce unnecessary risks and promote smooth customs clearance through prior review.