Customs Recordation explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
India's customs authorities act against imported goods that infringe intellectual property rights under the Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007. The route begins with a written notice from the right holder at the port of import, which the Commissioner registers; after registration, suspected infringing goods can be held, examined and, if confirmed, disposed of. This guide walks through the process from the right holder's side and from the importer's side. If you hold a trade mark and need to act against copies, our trademark infringement notice service can help.
The rules are described as amended up to the CBIC text updated 22 June 2018 (reflecting Notification No. 56/2014-Cus. (N.T.) and No. 56/2018-Cus. (N.T.)). Later notifications should be checked, as no official consolidated text exists beyond the CBIC text. The rules apply to imported goods only.
A right holder gives written notice, in the prescribed format and with the application fee, to the Principal Commissioner or Commissioner of Customs at the port of import (rule 3). The notice is registered or rejected within thirty working days (rule 4). After registration, import of allegedly infringing goods is deemed prohibited under section 11 of the Customs Act, 1962 (rule 6); clearance is suspended and the right holder must join the proceedings within the printed periods (rule 7). Goods confiscated under section 111(d) are destroyed or disposed of outside the normal channels of commerce, and re-export in an unaltered state is not allowed (rule 11).
Which rights are covered
Rule 2 defines "intellectual property" as a copyright under the Copyright Act, 1957, a trade mark under the Trade Marks Act, 1999, a design under the Designs Act, 2000 and a geographical indication under the Geographical Indications of Goods (Registration and Protection) Act, 1999. Patents are not named. A "right holder" is the owner of the right, its successors in title, a duly authorised exclusive licensee, or an individual, corporation or association authorised by any of them to protect the right. "Goods infringing intellectual property rights" are goods made, reproduced, put into circulation or otherwise used in breach of intellectual property laws without the right holder's consent. The registration stage is explained in Rules 1 to 5.
Step 1: the notice (rule 3)
The notice is in writing, in the format prescribed in the Annexure, and goes to the Principal Commissioner or Commissioner of Customs, or an authorised customs officer, at the port of import. It must come with a document showing payment of the application fee printed in rule 3(3), which is Rs. 2000. If information required by the format is missing, the Deputy or Assistant Commissioner may ask for it within fifteen days, extendable on sufficient reasons. The right holder must tell customs when the right ceases to be valid or he ceases to be the owner. The Annexure headings include proof of existence and ownership of a valid right, the grounds for the notice, a description of the goods with a sample or photograph of the genuine product, and the customs station to be covered.
Step 2: registration (rules 4 and 5)
| Point | What the rules say |
|---|---|
| Decision | Within thirty working days of receipt, the Commissioner notifies whether the notice is registered or rejected (rule 4(1)) |
| Validity | The validity period is stated; the minimum is one year unless a shorter period is asked for (rule 4(2)) |
| Circulation | The registering officer informs all customs offices covered by the notice (rule 4(3)) |
| Conditions | The right holder gives a bond and an indemnity bond under rule 5 |
The rule prints no deemed registration if the officer is silent, so a right holder who has not heard within thirty working days should follow up in writing.
Step 3: suspension and the right holder's response (rules 6 and 7)
After registration, the import of allegedly infringing goods is deemed prohibited within the meaning of section 11 of the Customs Act. See Section 11: power to prohibit import or export. The Deputy or Assistant Commissioner suspends clearance on the right holder's notice, or on his own initiative where he has prima facie evidence or reasonable grounds, and informs the importer and the right holder immediately with reasons. The printed periods are:
| Situation | Period | Rule |
|---|---|---|
| Suspension on right holder's notice: right holder must join the proceedings | Ten working days, extendable by another ten days | 7(3) |
| Suspension on officer's own initiative: right holder must give notice and meet rule 5 | Five days from the date of suspension | 7(4) |
| Own initiative, notice given and rule 5 met: right holder must join | Ten working days, extendable by another ten working days | 7(6) |
| Perishable goods: suspension | Three working days, extendable by four days | 7(7) |
| Perishable goods: right holder must join | Three working days or the extended period | 7(8) |
If the right holder does not join in time, the goods are released, provided the other conditions of import are met. If the right holder joins, and the officer has reason to believe the goods infringe and are liable to confiscation under section 111(d), he may seize them under section 110 (rule 7(9)). The next rules cover examination by the right holder and exchange of information between the parties; see Rules 6 to 10.
Step 4: disposal (rule 11)
Where goods detained or seized are found to infringe and are confiscated under section 111(d), and no legal proceedings are pending on that determination, the officer destroys them under official supervision or disposes of them outside the normal channels of commerce, after obtaining the right holder's no objection. If the right holder does not react within twenty working days (or an extended period of not more than another twenty working days), he is deemed to concur. The costs of destruction, demurrage and detention up to destruction or disposal are borne by the right holder. Re-export in an unaltered state is not allowed, and samples may be retained as evidence for litigation. See Rules 11 to 13 for the full rule, and Penalties under sections 112 to 117 for the Act's penalty provisions.
What is outside the rules
Rule 12 keeps goods of a non-commercial nature in personal baggage, and small consignments intended for the importer's personal use, outside these rules. The rules give no figure for "small". Rule 13 deals with protection of action taken in good faith.
A worked example
Verma Footwear Limited (invented) holds a registered trade mark and gives notice at the port where counterfeit shoes have been arriving. The Commissioner registers the notice for a stated period. A consignment of copies arrives; the Assistant Commissioner suspends clearance and informs the importer and Verma in writing. Verma joins the proceedings within ten working days. The goods are confiscated under section 111(d), no proceedings are pending, and Verma does not object to destruction; the officer destroys them under supervision, and Verma bears the cost.
Common mistakes
- Treating the rules as covering exports; they apply to imported goods.
- Assuming patents are covered; rule 2 lists copyright, trade marks, designs and geographical indications.
- Failing to join the proceedings within the period in rule 7, so that the goods are released.
- Expecting silence after thirty working days to mean the notice is registered.
- Overlooking the right holder's liability for destruction, demurrage and detention costs.
- Forgetting to tell customs when the right lapses or ownership changes.
Need help with a customs IP notice?
We can prepare the notice papers, track the registration and the right holder's response periods, and handle the follow-up on a suspended consignment through our trademark infringement notice service.
Key takeaways
- Customs action starts with a registered notice from the right holder at the port of import.
- Registration or rejection comes within thirty working days; validity is at least one year unless a shorter period is asked for.
- Registered rights make infringing imports deemed prohibited under section 11.
- The right holder must join the proceedings within the printed periods or the goods are released.
- Confiscated goods are destroyed or disposed of outside commerce, with costs on the right holder.
Read next
- Rules 1 to 5: notice by right holder and registration
- Rules 6 to 10: suspension of clearance and examination
- Rules 11 to 13: disposal, baggage and de-minimis exclusion
- Section 11: Power to Prohibit Import or Export
Disclaimer: Based on the Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007 as printed by CBIC (text updated 22 June 2018). Later amendments, formats and fees should be checked. This article is general information, not legal advice; check the official text before acting.