TIOL-DDT 686 · Monday, 27 August 2007 · story 4 of 5

Implementation of IPR Rules - CBEC issues draft circular for comments - all Custom Houses to have IPR Cells with officers of proven calibre.

Board has issued a draft circular containing instructions for implementation of Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007 and wants your comments before 11.9.2007.

The Circular stipulates

1. it has been decided that, the right holders may furnish a General Bond without security to the Commissioner of Customs in the format as prescribed at Annexure-A to this circular prior to the grant of registration, undertaking to execute the Bond and indemnity Bond as required under Rule 5(a) and Rule 5(b) respectively of the said Rules within three days from the date of interdiction of any allegedly infringing imported consignment .

2. Prior to grant of registration, the right holder shall also be required to furnish an indemnity bond in the format as specified at Annexure-C to this circular, in addition to the General bond.

3. The surety and security shall be on consignment basis and shall be furnished along with the bond to be furnished consequent upon interdiction of consignment allegedly infringing rights of the right holders.

4. Keeping in view the value of the goods and other incidental expenses, it has been decided that the Bond amount should be equal to 110% of the value of goods.

5. In case it is found at any stage that the right holder has furnished any wrong or false information, the registration accorded under Rule 4 of the said Rules may be cancelled forthwith.

6. If , after the registration is granted , the right holder wants any modification on account of any amendment in registration granted to them by the respective registry of the departments enforcing the parent IPR law or on account of any other reason, the right holder shall be required to seek fresh registration in place of the old registration and would be required to undergo all the processes of registration again, like making fresh application, payment of fees, execution of bond etc.

7. The registration will be granted only after the Commissioner of Customs has completed verification of the documents and facts and after the right holder has furnished the General Bond and Indemnity Bond.

8. The protection of rights will be accorded only on grant of permanent registration number to the right holders.

9. To begin with, while the web-enabled electronic registration system is being put in place, the field Commissioners are advised to accept the applications in the format as prescribed in the Annexure to the said Rules.

10. However, in order to have a centralized registration , it will be mandatory for all applicants to file applications on-line, once the system is geared up for accepting electronic on-line registration. The trade will be intimated the date of coming into force of the electronic regime.

11. The Customs and the right owners/holders seeking protection are under obligation to follow the time lines indicated in various sub-rules that cover practical situations that may arise in the field.

12. For smooth implementation of the IPR regime, it is desirable that IPR Cells may be constituted in each Custom House.

13. The IPR Cell may be vested with the responsibility of verifying the applications, completing web-enabled registration formalities and making correspondence with the Risk Management Division and other Customs formations.

14. Further, any import involving suspected infringement of IPRs may have to be invariably handled by the IPR Cell. Any instance of suo-moto interdiction of the import consignments by the Customs, involving possible infringements, should also be referred to such IPR Cell.

15. The job is time - bound and sensitive and hence it is advised that officers of proven calibre may only be posted in the IPR Cells.

CBEC Draft Circular in F. No. 305/96/2004-FTT (Pt-I)