Rights Holder Confirmation and Customs Hold

Overview

Rights holder confirmation and Customs hold refer to practical procedures that may occur when imported goods are suspected of infringing intellectual property rights in Japan.

If Customs finds possible issues involving counterfeit goods, brand goods, character goods, design imitation goods, logo-marked products or parts resembling genuine products, the cargo may not proceed directly to import permission.

At this stage, the goods have not necessarily been finally determined to be illegal. The practical issue is that Customs requires confirmation of authenticity, authorization, rights relationship or whether the goods fall under prohibited imports as intellectual property infringing goods.

For forwarders, the important role is not to decide intellectual property infringement, but to coordinate quickly with the importer, customs broker and related parties so that the necessary documents and explanations can be prepared.

When Customs Hold May Occur

A Customs hold may occur during document review, customs inspection or intellectual property border enforcement checks.

Goods may be held when the product appearance, brand name, logo, character, tag, label, package, invoice description, sales page or commercial route raises doubt.

Typical goods include:

• counterfeit or suspected counterfeit brand goods;
• goods bearing famous brand names or logos;
• character goods or products using protected artwork;
• products that imitate protected designs or product shapes;
• replacement parts or accessories similar to genuine parts;
• goods purchased through unclear overseas e-commerce routes;
• OEM, sample, surplus or promotional goods with unclear authorization.

The cargo being held does not automatically mean that infringement has been confirmed. It means that Customs requires further confirmation before allowing the goods to be imported.

Basic Flow of Customs Hold and Verification

The practical flow is usually as follows:

• Customs finds a possible intellectual property issue during inspection or review;
• the cargo is held or the clearance process is suspended;
• the importer or customs broker is contacted for explanation or documents;
• Customs may begin verification procedures if infringement is suspected;
• the importer and rights holder may be given an opportunity to submit opinions and evidence;
• Customs reviews the submitted information;
• Customs determines whether the goods fall under intellectual property infringing goods;
• the goods may be imported, or import may be suspended if infringement is determined.

In practice, the first response is very important. If the importer cannot quickly explain the commercial route, authenticity or authorization, the clearance delay may become longer.

Verification Procedures

Verification procedures are Customs procedures used to determine whether goods suspected of infringing intellectual property rights actually fall under prohibited imports.

During these procedures, Customs may notify both the importer and the rights holder. Each side may have an opportunity to submit opinions and evidence within the required period.

The importer should be aware that responses to Customs notices may be required within a specified period, which may be as short as ten working days depending on the notice.

The importer may need to explain why the goods are genuine, authorized, parallel-imported, independently designed, not for distribution, or otherwise not infringing intellectual property rights.

The rights holder may submit information supporting the suspected infringement. Customs then considers the submitted opinions and evidence and determines whether the goods may be imported or should be treated as infringing goods.

If the importer does not respond or does not provide supporting evidence, the cargo may be more likely to be treated unfavorably. Therefore, importers should not ignore a notice from Customs.

Documents and Information Importers May Need

When Customs asks for confirmation, the importer may need to provide documents and information such as:

• commercial invoice and packing list;
• purchase order or sales contract;
• supplier information and purchase route;
• proof that the goods are genuine;
• license agreement or authorization letter;
• documents showing relationship with the rights holder;
• proof of authorized distributor status;
• product photographs, catalogues or sales pages;
• explanation of whether the goods are parallel imports, samples, OEM goods or promotional goods;
• documents showing the intended use or purpose of import;
• written explanation to Customs, if required.

An invoice alone is often not enough. The importer may need to explain why the goods are legitimate and why the import does not infringe intellectual property rights.

Role of the Forwarder

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

However, in practical logistics, the forwarder often becomes the communication coordinator between the importer, customs broker, warehouse, overseas shipper and related parties.

When a Customs hold occurs, the forwarder should:

• notify the importer or shipper quickly;
• explain that clearance is stopped or delayed;
• ask for documents requested by the customs broker or Customs;
• confirm whether the goods are genuine, authorized or parallel imports;
• collect product photos, catalogues and supplier information;
• share possible schedule impact with the importer;
• confirm storage charges, demurrage, delivery delay or other cost impact;
• avoid making legal conclusions on behalf of the importer.

The forwarder should keep communications in writing where possible, because later disputes may arise over who was asked to provide documents and when.

Goods That Require Particular Care

The following goods require particular care in import forwarding:

• brand goods;
• logo-marked products;
• character goods;
• design-sensitive products;
• 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.

Initial transactions, unclear suppliers, extremely cheap brand goods and vague invoice descriptions are especially risky.

Rights Holder Confirmation

Rights holder confirmation means that the legitimacy of the goods may need to be checked against the rights holder’s position or records.

Depending on the case, the importer may need to show that the goods were supplied by the rights holder, an authorized distributor, a licensee or a legitimate commercial route.

For trademark-related goods, authenticity and authorization may be central issues. For design-related goods, product appearance and registered design scope may matter. For copyright-related goods, characters, artwork, printed materials, software, images or other creative works may become relevant.

Forwarders should not promise that goods will clear Customs merely because the importer says they are genuine. If rights holder confirmation is needed, the importer must prepare convincing documents and explanations.

Practical Impact of Customs Hold

If Customs hold continues, the practical impact may be serious.

Possible consequences include:

• customs clearance delay;
• missed delivery schedule;
• storage charges;
• demurrage or detention if containers are involved;
• additional handling charges;
• delay in sales launch or delivery to customers;
• request for additional documents;
• verification procedures;
• import suspension, destruction, abandonment or other handling if infringement is determined.

Because the cargo may remain under Customs control during the process, the logistics schedule should be reviewed as soon as the hold is identified.

Voluntary Actions and Possible Outcomes

Depending on the case and the stage of the procedure, the importer may need to consider possible options such as submitting evidence, obtaining consent from the rights holder, correcting the goods, abandoning the goods, returning the goods or other procedures allowed under the applicable framework.

These options should not be decided casually. They may depend on the type of intellectual property right, the nature of the goods, Customs instructions, rights holder position and whether the goods can legally be returned or corrected.

The importer should coordinate with the customs broker, legal adviser or specialist where necessary. The forwarder should avoid advising on legal strategy beyond logistics coordination.

Practical Notes for Shipments to Japan

For shipments to Japan, overseas shippers and origin-side forwarders should understand that intellectual property confirmation can occur at the border even if the documents appear 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 held in Japan.

Forwarders should also explain to importers that Customs hold is not merely a delay problem. It may affect the legal importability of the goods, storage costs, delivery schedule and the importer’s relationship with customers.

Key Takeaway

Rights holder confirmation and Customs hold are important practical issues in Japan import operations involving intellectual property rights.

A Customs hold does not always mean that the goods have already been confirmed as infringing, but it means that Customs requires clarification 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 suspension.