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Q&A Regarding the China's Foreign Trade Law (5)

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Q: What are the consequences if imported goods infringe intellectual property rights?
A: If imported goods infringe intellectual property rights and harm the order of foreign trade, the foreign trade authority under the State Council may take measures such as prohibiting, for a certain period, the importation of relevant goods produced or sold by the infringer.

Q: What are the consequences if an intellectual property rights holder harms the fair competition order in foreign trade?
A: If an intellectual property rights holder engages in acts such as preventing licensees from challenging the validity of intellectual property in licensing contracts, imposing mandatory package licensing, or including exclusive grant-back conditions in licensing agreements — and such acts harm the fair competition order in foreign trade — the foreign trade authority under the State Council may take necessary measures to eliminate the harm.

Q: What are the consequences of engaging in unfair competition in foreign trade activities?
A: Monopolistic or unfair competitive practices carried out in foreign trade activities that harm market fairness shall be handled in accordance with the relevant laws and administrative regulations on anti-monopoly and anti-unfair competition.

Q: What acts are prohibited in foreign trade activities?
A: The following acts are prohibited in foreign trade activities:
  1. Falsifying or altering the indication of origin of imported or exported goods; falsifying, altering, or buying/selling certificates of origin, import/export quota certificates, import/export licenses, tariff quota certificates, or other import/export certification documents;
  2. Evading domestic taxes payable on exports or fraudulently obtaining export tax rebates;
  3. Smuggling;
  4. Evading certification, inspection, or quarantine procedures required by laws or administrative regulations;
  5. Any other acts in violation of laws or administrative regulations.

Q: What laws and regulations must foreign trade operators comply with?
A: Foreign trade operators shall comply with relevant provisions on customs supervision and management, foreign exchange control, data security protection, and other applicable regulations in their foreign trade activities.

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