Indemnity Replaces Up-Front Security for Customs Border Protection Notices

With effect from 1st June 2020 Customs no longer require up-front security from trade mark and copyright owners when requesting Customs to detain goods suspected of being pirated or counterfeit.

Prior to the recent change Customs required an up-front security of $5,000 when trade mark and copyright rights owners filed a Border Protection Notice, which would remain in effect until the earlier of 5-years or the expiry of the right. Where such a notice has been filed Customs will detain suspected pirated or counterfeit goods, whether being imported or exported, for an initial (extendable) period of 10 working days, during which rights owners need to determine whether to initiate Court proceedings (unless the goods are surrendered to the Crown).

From 1st June 2020 the up-front security has been replaced by an indemnity scheme under which rights owners will indemnify Customs for costs incurred. New and renewal applications made from that date will need to include an indemnity form available from the above link. Upon application the $5,000 security will be refunded.

Customs do not require a Border Protection Notice to be filed in order to detain goods suspected of being pirated or counterfeit, but filing such a notice makes it more likely that such pirated or counterfeit goods will be intercepted by Customs.

Author: Quinn Miller

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