Import Suspension by Japan Customs

Overview

Import suspension by Japan Customs refers to the procedure in which Customs stops or suspends import clearance when imported goods are suspected of infringing intellectual property rights.

The suspected goods may involve trademark rights, design rights, copyrights, patent rights or other intellectual property rights. Typical examples include counterfeit goods, fake brand goods, character goods, design imitation goods, pirated goods and products that resemble genuine replacement parts.

At the initial stage, import suspension does not always mean that the goods have already been finally determined to be infringing. It means that Customs requires confirmation before allowing the goods to be imported.

For forwarders, the practical issue is not to decide whether the goods infringe intellectual property rights. The important role is to notify the importer quickly, collect required documents, coordinate with the customs broker and explain the possible schedule and cost impact.

When Import Suspension May Occur

Import suspension may occur during customs inspection, document review or intellectual property border enforcement checks.

Suspicion may arise from the goods themselves, the brand name, logo, character, design, package, tag, label, invoice description, product photograph, sales page, purchase price or commercial route.

Rights holders may also file an application for suspension with Japan Customs in advance. If such an application has been accepted, Customs may check goods that appear to fall within the scope of the application.

Even where no application has been filed, Customs may still check goods if their appearance, labeling or documentation suggests possible intellectual property infringement.

Application for Suspension

An application for suspension is a procedure by which an intellectual property rights holder requests Japan Customs to initiate verification procedures when Customs detects goods suspected of infringing the relevant rights.

This system is mainly used by rights holders to protect trademarks, designs, copyrights, patents and other intellectual property rights at the border.

For importers and forwarders, the practical point is that a shipment may be stopped because the rights holder has already provided Customs with information about suspected infringing goods.

Therefore, when brand goods, character goods, design-sensitive goods or copied products are imported, the importer should be ready to explain authenticity, authorization and commercial route before shipment where possible.

Basic Flow After Import Suspension

The practical flow is usually as follows:

• Customs detects goods suspected of infringing intellectual property rights;
• the cargo is held or import clearance is suspended;
• the importer or customs broker receives notice or inquiry from Customs;
• Customs may begin verification procedures;
• the importer and rights holder may be given an opportunity to submit opinions and evidence;
• Customs reviews the submitted materials;
• Customs determines whether the goods are infringing intellectual property rights;
• if the goods are not infringing, import clearance may proceed;
• if the goods are determined to be infringing, import may be refused and the goods may be subject to confiscation, destruction or other procedures.

The exact procedure may differ depending on the type of right, the notice issued by Customs, the position of the rights holder and the importer’s response.

Verification Procedures

Verification procedures are used to determine whether suspected goods fall under prohibited imports as intellectual property infringing goods.

In these procedures, Customs may notify both the importer and the rights holder. The importer may need to explain why the goods are genuine, authorized, parallel-imported, independently designed or otherwise not infringing.

The rights holder may submit information supporting the suspected infringement. Customs then reviews the opinions and evidence and decides whether the goods may be imported.

The importer should respond within the period stated in the Customs notice. Depending on the notice, the response period may be short, so the importer should not wait until the delivery schedule is already affected.

Detailed handling of rights holder confirmation and Customs hold should be reviewed together with the separate article on Rights Holder Confirmation and Customs Hold.

Documents the Importer May Need

When import suspension occurs, the importer may need to prepare documents and explanations such as:

• commercial invoice and packing list;
• purchase order or sales contract;
• supplier information and purchase route;
• proof that the goods are genuine;
• authorization letter or license agreement from the rights holder;
• documents showing authorized distributor status;
• catalogues, official product information or manufacturer documents;
• product photographs showing logo, label, tag, package and product appearance;
• explanation of whether the goods are parallel imports, OEM goods, samples or promotional goods;
• written explanation to Customs, if required.

An invoice alone is often not enough. The importer may need to explain the rights relationship, commercial route and reason why the goods should not be treated as infringing goods.

Practical Impact on Forwarding

Import suspension can have a significant impact on forwarding operations.

Possible effects include:

• customs clearance delay;
• missed delivery schedule;
• storage charges;
• demurrage or detention if containers are involved;
• additional handling or document coordination costs;
• delay in sales launch or delivery to customers;
• need for additional legal or specialist review;
• return, abandonment or destruction if import is not allowed.

Because the cargo may remain under Customs control during the procedure, the delivery plan should be reviewed immediately after the hold or suspension is identified.

Role of the Forwarder

The forwarder is not the party that determines whether goods infringe intellectual property rights.

However, the forwarder often acts as a communication coordinator between the importer, customs broker, warehouse, overseas shipper and other related parties.

When import suspension occurs, the forwarder should:

• notify the importer or shipper quickly;
• confirm what Customs or the customs broker is requesting;
• ask the importer for documents proving authenticity or authorization;
• collect product photos, catalogues and supplier information where needed;
• share the possible delay and cost impact;
• confirm whether storage, demurrage or detention may arise;
• keep communications in writing;
• avoid making legal conclusions on behalf of the importer.

The forwarder should explain the logistics impact clearly, while leaving legal judgment and rights confirmation to the importer, customs broker, rights holder, legal adviser or specialist.

Goods That Require Particular Care

The following goods are more likely to raise intellectual property concerns:

• brand goods;
• logo-marked products;
• character goods;
• design-sensitive products;
• pirated DVDs, software or printed materials;
• replacement parts resembling genuine parts;
• smartphone accessories and fashion accessories;
• cosmetics and beauty goods with brand marks;
• toys, novelty goods and promotional goods;
• goods purchased through overseas e-commerce platforms;
• goods with an unusually low purchase price or unclear supplier route.

Initial transactions, overseas e-commerce sourcing, unclear suppliers, extremely cheap brand goods and vague invoice descriptions require particular caution.

Difference from Ordinary Customs Inspection

Import suspension for intellectual property issues is different from ordinary customs inspection for tariff classification, value, quantity or other import declaration issues.

In ordinary customs inspection, the main question may be whether the declaration is correct. In intellectual property import suspension, the main question is whether the goods may be legally imported at all.

This distinction is important because the outcome may not be only correction of documents or payment of duties. If the goods are determined to be infringing, they may not be imported even if freight, duty and taxes are paid.

Practical Notes for Shipments to Japan

For shipments to Japan, overseas shippers and origin-side forwarders should understand that intellectual property issues can stop import clearance even when ordinary shipping documents are complete.

If the goods carry brand names, logos, characters, distinctive designs or copied product shapes, the overseas side should be ready to provide supplier information, authorization evidence, catalogue information and explanation of the commercial route.

It is better to prepare these materials before shipment than to collect them after the cargo is already stopped by Customs in Japan.

Forwarders should also explain to importers that import suspension is not merely a delay problem. It may affect the legal importability of the goods, storage costs, delivery schedule, sales plan and customer relationship.

Key Takeaway

Import suspension by Japan Customs is an important border enforcement procedure for goods suspected of infringing intellectual property rights.

The goods have not always been finally determined to be infringing at the first stage, but Customs requires confirmation before import clearance can proceed.

For forwarders, the practical role is to coordinate quickly, ask the importer for evidence, share schedule and cost impact, and avoid making legal judgments. Early confirmation of authenticity, authorization and commercial route is the best way to reduce the risk of Customs delay or import refusal.