Conditions for registration - CBEC's Customs Manual 2023 - Customs

3. Conditions for registration: 3.1 The grant of registration shall be subject to following conditions, namely: (i) The right holder or his authorised representative shall execute a bond with the Commissioner of Customs for such amount with such surety and security as deemed appropriate by the Commissioner, undertaking to protect the importer, consignee and the owner of the goods and the competent authorities against all liabilities and to bear the costs towards destruction, demurrage and detention charges incurred till the time of destruction or disposal, as the case may be; (ii) The right holder shall execute an indemnity bond with the Commissioner of Customs indemnifying the Customs authorities against all liabilities and expenses on account of suspension of the release of allegedly infringing goods. (iii) At the time of registration but prior to importation, it may be difficult to fix the bond amount corresponding to the value of suspected infringing goods not yet imported. Further, this would lock in right holders money in the form of security. Therefore, the right holders may furnish a General Bond without security [Para 3.1 (i)] The right holder shall also undertake to execute Consignment Specific Bond with the jurisdictional Commissioner of Customs at the port of interdiction within three days from the date of interdiction of any allegedly infringing imported consignment. The surety and security shall be on consignment basis and shall be furnished along with the consignment specific bond consequent upon interdiction of the consignment allegedly infringing rights of the right holder. 3.2 The bond amount equal to 110% of the value of goods and security of 25% of the bond value is required to be furnished by the right holder. 3.3 An on-line, system driven, centralized bond management module has been implemented as part of the existing Automated Recordation and Targeting System (ARTS). The main objective of this system is to provide for a single centralized bond and surety/security account that can be used at all ports in India, so that the IPR holders do not have to rush to different customs formations to execute consignment specific bonds and sureties/securities upon receipt of information about an interdiction of allegedly infringing consignment. 3.4 The Commissioner shall notify the applicant within 30 days of receipt of notice or from the date of expiry of extended period whether the notice has been registered or rejected. 3.5 If registration is granted, its validity period would be indicated and the same shall minimum for one year (unless the right holder requests it for shorter period). 3.6 After the grant of the registration of the notice by the Commissioner, the import of allegedly infringing goods into India shall be deemed as prohibited within the meaning of Section 11 of the Customs Act, 1962. 3.7 Right holder or his authorised representative shall inform the Commissioner of Customs at the time of giving notice about any amendment, cancellation, suspension, or revocation of the Intellectual Property Right by the authorities under the Intellectual Property Laws or any Court of Law or Appellate Board, or subsequent to its registration with the Customs within one month of the date of communication for any such amendment, cancellation, suspension, or revocation. [Refer Notifications No. 47/2007-Customs (N.T.) dated 08.05.2007 as amended vide Notification No. 56/2018-Customs (N.T.) dated 22.06.2018, Circulars No.41/2007-Customs dated 29.10.2007 and No. 10/2011-Customs dated 24.02.2011]