A counterfeit shipment found by customs is only held if the right holder reacts correctly inside the very narrow window of the clearance suspension procedure. Miss the customs notice or delay confirming infringement, and the shipment clears as normal while the chance to stop it at the border disappears.
Legal basis to start from
The procedure for suspending customs clearance of goods suspected of infringing intellectual property rights sits in Articles 73 to 76 of the Law on Customs and can start in two ways: customs detects the goods proactively under a registered supervision and notifies the right holder, or the right holder has information about a specific consignment and applies proactively. After notification, the right holder must confirm signs of infringement and file the suspension request together with the required security, whose reference level is 20 percent of the consignment value and not less than VND 20 million, before customs issues the suspension decision.
How this applies in practice
Time is the decisive factor: the initial suspension lasts 10 days and may be extended as regulated, with the total suspension capped at 20 days, enough for the right holder to sue or request a competent authority to handle the infringement; if the period lapses without grounds for further handling, the goods are released. During this process the cargo owner is not stripped of rights: they are notified of the suspension, may explain and present evidence of lawful goods such as licences or genuine purchase invoices, may complain against the suspension decision and claim compensation if the detention was wrongful.
What to do next
- Maintain a continuously reachable customs notification contact and an internal process to confirm infringement within 24 hours of receiving a notice.
- Keep ready templates for the suspension request, powers of attorney and a security source, so they can be filed inside the window customs allows.
- Once goods are suspended, decide the next track in parallel: civil suit, request for administrative handling, or negotiation, because the 10-to-20-day clock does not wait for internal meetings.
Frequently Asked Questions
What is the procedure for customs to suspend clearance of suspected infringing goods?
The steps are: customs detects or receives a request about a suspect consignment and notifies the right holder; the right holder confirms signs of infringement and files the suspension request with security; customs decides to suspend clearance; during the suspension, the right holder sues or requests infringement handling, failing which the goods are released.
How long can the suspension last?
The initial suspension is 10 days and may be extended as regulated, with the total suspension capped at 20 days under the framework of Articles 73 to 76 of the Law on Customs. This is the window for the right holder to move the case into a formal infringement handling mechanism.
What rights does the cargo owner have when goods are held?
The cargo owner is notified of the suspension decision, may explain and provide evidence that the goods are lawful, may complain against the decision and claim damages if the suspension lacked grounds. The owner may also participate in the subsequent infringement handling as an interested party.
What must a company do to have a rival’s goods held?
The company should register IP supervision with customs in advance, or supply specific information about the rival’s consignment such as the bill of lading number, expected time and border gate, together with a suspension request and security once customs verifies signs of infringement.
This article has been quality-reviewed by the FLAW AI Legal Council