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U.S., China Expand Cooperation on Supply Chain Security, IPR Enforcement

Friday, June 26, 2015
Sandler, Travis & Rosenberg Trade Report

Following their Strategic and Economic Dialogue meeting in Washington, D.C., this week, U.S. and Chinese officials announced plans for further cooperation on several customs and trade issues.

Secretary of Homeland Security Jeh Johnson and China Customs Minister Yu Guangzhou signed a declaration of principles that will expand the Container Security Initiative to additional ports in China and to address all types of customs violations. The number of inspections conducted by the General Administration of China Customs and observed by U.S. Customs and Border Protection will be increased, and the two sides will begin the process of posting GACC officers at the port of Long Beach.

The two officials also discussed how to move forward with a mutual recognition arrangement between the Customs-Trade Partnership Against Terrorism and China’s authorized economic operator program. CBP and GACC have completed 387 joint validations in China and plan to conduct more this year to further align their respective programs.

Separately, the U.S. and China signed an agreement aimed at improving cooperation against the illicit importation, exportation and trafficking of counterfeit trademarked merchandise. A press release from U.S. Customs and Immigration Enforcement states that under the new agreement the U.S. and China will share seizure information like commodity descriptions, quantities, values, dates of import/export, infringed trademarks, known manufacturers and shippers, container numbers and other available information. They also intend to conduct joint training operations targeting counterfeit products that pose a health and safety risk. Representatives will increase the number of visits to each country’s ports, extend invitations to scheduled seminars related to IPR  enforcement, and issue a curriculum and training guide that focuses on how to successfully target intellectual property theft.

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