Kaohsiung customs (KHC) announced that to crack down on intellectual property (IP) rights infringement and strengthen border enforcement, the Ministry of Finance has amended Article 4 of "Standards of Minor Breaches for the Application of Customs Anti-smuggling Act" (hereinafter referred to as the Standards). The amendment excludes IP infringing activities -such as smuggling imports or exports or purchasing or selling smuggled goods on consignment- from eligibility for penalty exemptions. This amendment took effect on May 29, 2025.

KHC further explained that to deter IP rights infringement, Article 39-1 added to Customs Anti-smuggling Act in 2004, stipulates penalties for declared imports or exports that infringe IP rights, and does not provide for any exemption from such penalties. However, pursuant to Article 36 of the Customs Anti-smuggling Act, acts such as smuggling goods or purchasing or selling smuggled goods on consignment that infringe IP rights were previously eligible for fine exemption under Article 4 of the Standards, if the value of the goods did not exceed NT$5,000. This created a disparity of severity of penalties: IP-infringing goods that were properly declared could not be exempted, whereas smuggled goods could be exempted from fines. To address this inconsistency, the proviso to Article 4 of the Standards was amended to ensure that smuggled goods infringing IP rights are subject to fines regardless of their value.

KHC reminds the public that goods found to infringe IP rights-whether declared or smuggled across the border- are subject to fines and confiscation. No mitigation or exemption of penalties applies, even in minor cases. The public is urged not to purchase or sell IP-infringing goods across borders, to avoid legal penalties.

Division: Qijin Branch
Contact: Specialist Chen
Tel: 07-5727137