2.9.93 OfficialJournaloftheEuropeanCommunities NoC238/9
II
(PreparatoryActs)
COMMISSION
ProposalforaCouncilRegulation(EEC)layingdownmeasurestoprohibitthereleaseforfree
circulation,exportortransitofcounterfeitandpiratedgoods
(93/C238/15)
COM(93)329final
(SubmittedbytheCommissionon16August1993)
THECOUNCILOFTHEEUROPEAN COMMUNITIES ,theirreleaseforfreecirculationintheCommunityand
tointroduceanappropriateprocedureenablingthe
customsauthoritiestoacttoensurethatsucha
prohibitioncanbeproperlyenforced; HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunityandinparticularArticle113
thereof,
HavingregardtotheproposalfromtheCommission,Whereasactionbythecustomsauthoritiestoprohibitthe
releaseforfreecirculationofcounterfeitorpirated
goodsshouldalsoapplytotheexportofsuchgoods
fromtheCommunityandtothosewhicharecarried
underatransitprocedure;HavingregardtotheopinionoftheEuropean
Parliament,
HavingregardtotheopinionoftheEuropeanEconomic
andSocialCommittee,WhereastheCommunityshouldtakeintoaccountthe
termsofthedraftGATTagreementontrade-related
intellectualpropertyissues,includingtradeincounterfeit
goods,inparticularthemeasurestobetakenatthe
frontier;
WhereasCouncilRegulation(EEC)No3842/86of1
December1986layingdownmeasurestoprohibitthe
releaseforfreecirculationofcounterfeitgoods(')has
beeninforcesince1January1988;whereasconclusions
shouldbedrawnfromexperiencegainedduringtheearly
yearsofitsimplementation withaviewtoimprovingthe
operationofthesysteminstitutedthereunder;Whereasitmustbestipulatedthatthecustomsauth­
oritiesareempoweredtotakedecisionsonapplications
foractiontobetakenthataresubmittedtothem;
Whereasactionbythecustomsauthoritiesmustconsist
eitherinsuspendingthereleaseforfreecirculationorthe
exportofgoodssuspectedofbeingcounterfeitorpirated
orinseizingsuchgoodswhentheyarecarriedtothe
Communityundertransitprocedure,foraslongasis
necessarytoenableittobedeterminedwhetherthe
goodsareactuallycounterfeit;Whereasthemarketingofcounterfeitgoodsandpirated
goodscausesconsiderableinjurytolaw-abidingmanu­
facturersandtradersandmisleadsconsumers,whereas
suchgoodsshouldasfaraspossiblebepreventedfrom
beingplacedonthemarketandmeasuresshouldbe
adoptedtothatendtodealeffectivelywiththisunlawful
activitywithoutimpedingthefreedomoflegitimate
trade,whereasthisobjectiveisalsobeingpursued
througheffortsbeingmadealongthesamelinesatinter­
nationallevel;
Whereasinsofarascounterfeitorpiratedgoodsare
importedfromthirdcountriesitisimportanttoprohibitWhereastheobjectivetobeachievedbytheintroduction
ofsuchaproceduredoesnotrequirethedrawingupof
Communityprovisionseitherasregardsthedesignation
ofthejudicialauthoritycompetenttodeterminewhether
thegoodsenteredforfreecirculationorforexportor
seizedduringatransitprocedurearecounterfeitor
pirated,orasregardstheprocedurestobefollowedfor
referraltothatauthority;whereasintheabsenceof OOJNoL357,18.12.1986,p.1.

NoC238/10 OfficialJournaloftheEuropeanCommunities 2.9.93
Communityrulesonthesubjectthesaidcompetent
authorityshouldfurthermoredecidecasessubmittedtoit
byreferencetothecriteriawhichareusedtodetermine
whethergoodsproducedintheMemberStateconcerned
infringeintellectualpropertyrights;counterfeitorpiratedorwheresuchgoodsare
carriedunderatransitprocedure;
and
i ,
(b)themeasureswhichshallbetakenbythecompetent
authoritieswithregardtothosegoodswhereithas
beenestablishedthattheyareindeedcounterfeitor
pirated.Whereasitisnecessarytodeterminethemeasurestobe
appliedtogoodsenteredforfreecirculationorfor
exportorcarriedunderatransitprocedurewhereitis
establishedthattheyarecounterfeitorpirated;whereas
thosemeasuresmustnotonlydeprivethoseresponsible
fortradinginsuchgoodsoftheeconomicbenefitsofthe
transactionbutalsoconstituteaneffectivedeterrentto
furthertransactionsofthesamekind;
Whereasinordertoavoidseriousdisruptiontothe
clearingofgoodscontainedintravellers'personal
luggage,itisnecessarytoexcludefromthescopeofthis
Regulationgoodswhichmaybecounterfeitorpirated
whichareimportedfromthirdcountrieswithinthelimits
laiddownbyCommunityrulesinrespectofrelieffrom
customsduty;
Whereasuniformapplicationofthecommonruleslaid
downbythisRegulationmustbeensuredandtothat
endaCommunityproceduremustbeestablished
enablingmeasuresimplementing theserulestobe
adoptedwithinappropriateperiods;2.ForthepurposesofthisRegulation :
(a)'counterfeitgoods'means:
—goods,includingthepackaging,thereof,bearing
withoutauthorization atrademarkwhichis
identicaltothetrademarkvalidlyregisteredin
respectofthesametypepfgoods,orwhich
cannotbedistinguished initsessentialaspects
fromsuchtrademark,andwhichthereby
infringestherightsoftheownerofthe
trademarkinquestionunderCommunitylawor
thelawoftheMemberStatewherethe
applicationforactionbythecustomsauthorities
ismade,
r .
—anytrademarksymbol(logo),whetherornot
presentedseparately,inthesamecircumstances
asthegoodsreferredtointhefirstindent;
—anytool,mouldorsimilarmaterialspecifically
intendedforthemanufacture ofacounterfeit
trademarkorofaproductbearingsucha
trademark,providedsuchtools,mouldsor
materialsinfringeCommunitylaworthelawof
theMemberStatewheretheapplicationfor
actionbythecustomsauthoritiesismade;
—packagingmaterialsbearingthetrademarksof
counterfeitproducts,presentedseparately,inthe
samecircumstances asthegoodsreferredtoin
thefirstindent;Whereasitwillbeappropriatetoconsiderthepossibility
ofincreasingthenumberofintellectualpropertyrights
coveredbythisRegulationinthelight,interalia,ofthe
experiencegainedinitsimplementation ;
WhereasRegulation (EEC)No3842/86should
thereforeberepealed,
HASADOPTEDTHISREGULATION :
CHAPTER I
General
Article1
1.ThisRegulationlaysdown:(b)'piratedgoods'meansgoodsmadewithoutthe
consentoftheholderofthecopyrightorneigh­
bouringrights,oroftheholderofadesignright,
whetherornotregisteredundernationallaw,orofa
persondulyauthorizedbyhiminthecountryof
productionandwhicharemadedirectlyorindirectly
fromanarticle,wherethemakingofthosegoods
wouldhaveconstitutedaninfringementoftheright
inquestionunderCommunitylaworthelawofthe
MemberStatewheretheapplicationforactionby
thecustomsauthoritiesismade;(a)theconditionsunderwhichthecustomsauthorities
shalltakeactionwheregoodsenteredforfreecircu­
lationorforexportaresuspectedofbeing

t
2.9.93 OfficialJournaloftheEuropeanCommunities NoC238/11
(c)'ownerorholderofaright'meanstheownerofa
trademark,asreferredtoin(a),and/oroneofthe
rightsreferredtoin(b),oranyotherpersonautho­
rizedtousethetrademarkand/orrights,ortheir
representative ;
/ForthepurposesofthisArticle,'enteredforfreecircu­
lation'andand'forexport'meanenteredonthebasisof
declarationsmadeinwritingororallyorbyanyother
means.
2.Theapplicationreferredtoinparagraph 1shall
contain:
—asufficientlydetaileddescriptionofthegoodsto
enablethemtoberecognizedbythecustomsauth­
orities,and
\«
i
(d)'transit'meanstheexternaltransitprocedurereferred
toinArticle91ofCouncilRegulation(EEC)No
2913/92of12October1992establishingthe
CommunityCustomsCode(1).
3.ThisRegulationshallnotapplytogoodswhich
bearatrademarkwiththeconsentoftheownerofthat
trademarkorwhichareprotectedbyacopyrightor
neighbouringrightoradesignrightandwhichhave
beenmadewiththeconsentoftheholderoftheright
butwhichareenteredforfreecirculationorforexport
withouttheowner'sortheholder'sconsent.
Norshallitapplytogoodsreferredtointhefirst
subparagraphenteredforfreecirculationorforexport
whichbearatrademarkunderconditionsotherthan
thoseagreedwiththeowneroftherightsinquestion.
CHAPTER II
Prohibitionofthereleaseforfreecirculation,exportor
transitofcounterfeitgoodsandpiratedgoods
Article2
Thereleaseforfreecirculation,exportorcarriageunder
atransitprocedureofgoodsfoundtobecounterfeitor
piratedoncompletionoftheprocedureprovidedforin
Article5shallbeprohibited.—proofthattheapplicantistheownerorholderofthe
rightforthegoodsinquestion.
Theownerorholderoftherightmustalsoprovideall
otherpertinentinformationavailabletohimtoenable
thecompetentauthoritytoactontheapplicationinfull
knowledgeofthefacts,without,however,thisinfor­
mationbeingaconditionofadmissibilityofthe
application .
Asregardspiratedgoods,thisinformationshall,
whereverpossible,containthefollowing:
—theplacewherethegoodsaresituatedorthe
intendeddestination,
—particularsidentifyingtheconsignmentorpackages,
—scheduleddateofarrivalordepartureofthegoods,
—themeansoftransportused,
—theidentityoftheimporterorexporter.
3.Theapplicationmustspecifythe(lengthofthe
periodduringwhichthecustomsauthoritiesare
requestedtotakeaction.
4.Theapplicantmaybechargedafeetocoverthe
administrative costsincurredindealingwiththe
application .Thefeemustbecommensurate withthe
costsincurredandmustnothavetheeffectofdeterring
theapplicant.
5.Theauthoritywithwhichanapplicationdrawnup
pursuanttoparagraph2hasbeenlodgedshalltakea
decisionontheapplicationandshallimmediatelynotify
theapplicantinwritingofthatdecision.
Wheretheapplicationisgranted,itshallspecifythe
periodduringwhichthecustomsauthoritiesshalltake
action.Thatperiodmay,uponapplicationbytheowner
orholderoftheright,beextendedbytheauthority
whichtooktheinitialdecision.
Refusalstograntanapplicationmustcontainthereasons
fortherefusalandshallbeopentoappeal.
6.MemberStatesmayrequiretheownerorholderof
aright,wherehisapplicationhasbeengranted,orwhereCHAPTERIII
Applicationforactionbythecustomsauthorities
4
Article3
1.IneachMemberState,anownerorholderofa
rightmaylodgeanapplicationinwritingwiththe
competentauthorityforthereleaseofcounterfeitor
piratedgoodsenteredforfreecirculationorforexport
inthatMemberStatetoberefusedbythecustomsauth­
oritiesorfortheseizureofsuchgoodswheretheyare
carriedtothatMemberStateunderatransitprocedure,
wherehehasvalidgroundsforsuspectingthatthe
importation,exportationorcarriageunderatransit
procedureofsuchcounterfeitorpiratedgoodsis
contemplatedinthatMemberState.
- ">.)
0)OJNoL302,19.10.1992,p.1.

NoC238/12 OfficialJournaloftheEuropeanCommunities 2.9.93
thereleaseofaconsignmentofgoodsissuspendedor
thegoodsareseizedwhilstunderatransitprocedure
pursuanttoArticle5(1),toprovideasecurity:Thecustomsofficeshallimmediatelyinformthe
authoritywhichdecidedontheapplicationin
accordancewithArticle4.Thecustomsoffice,orthe
competentauthoritywhichdecidedontheapplication,
shallimmediatelyinformthepersonmakingtheentry
andthepersonwhoappliedforactiontobetaken.
Withoutprejudicetotheprotectionofconfidentialinfor­
mation,theyshallaffordtheapplicantandtheimporter,
theexporterorthepersonsinvolvedinthetransit
proceduretheopportunitytoinspectthegoodsthe
releaseofwhichhasbeensuspendedorwhichhavebeen
seized.
Whenexaminingthegoodsthecustomsofficemaytake
samplesinordertoexpeditetheprocedure.—tocoveranyliabilityonhispartvis-a-visthe
importer,exporterorthepersonsinvolvedinthe
transitprocedurewheretheprocedureinitiated
pursuanttoArticle5(1)isdiscontinuedowingtoan
actoromissionbytheownerorholderoftheright
orwherethegoodsinquestionaresubsequently
foundnottobecounterfeitorpirated,
—toensurepaymentofthecostsincurredin
accordancewiththeprovisionsofthisRegulationin
keepingthegoodsundercustomscontrolpursuantto
Article5.
Thesecuritymustnotbesuchastoconstituteanundue
deterrenttoinitiatingorimplementingthisprocedure.
7.Theownerorholderoftherightshallbeobligedto
informtheauthorityreferredtoinparagraph 1should
therightceasetobevalidlyregisteredorshouldit
expire.2.ThelawinforceintheMemberStateinwhose
territorythegoodswereenteredforfreecirculationor
forexportorwheretheywereseizedduringatransit
operationshallapplyasregards:
(a)thereferraltotheauthoritycompetenttotakea
substantivedecisionandinformwithoutdelaythe
customsofficespecifiedinparagraph 1ofsuch
referral,unlessreferralisundertakenbythatcustoms
office;
(b)reachingthedecisiontobetakenbythatauthority.
IntheabsenceofCommunityrulesinthisregard,
thecriteriatobeusedinreachingthatdecisionshall
bethesameasthoseusedtodeterminewhether
goodsproducedintheMemberStateconcerned
infringetherightsoftheownerorholder.Reasons
shallbegivenfordecisionsadoptedbythe
competentauthority.8.MemberStatesshalldesignatethecustoms
departmentcompetenttodecideontheapplication
referredtointhisArticle.
MemberStatesmay,inadditiontothedepartment
referredtointhefirstsubparagraph ,designateanother
authorityastheauthoritycompetenttodecideonthe
application .
Article4
Thedecisiongrantingtheapplicationbytheowneror
holderoftherightshallbeforwardedimmediatelytothe
customsofficesoftheMemberStatewhichareliableto
beconcernedwithimports,exportsortransitoperations
involvingthecounterfeitorpiratedgoodsreferredtoin
theapplication .
CHAPTERIVArticle6
1.If,withintenworkingdaysofnotificationof
suspensionofreleaseorofseizure,thecustomsoffice
referredtoinArticle5(1)hasnotbeeninformedthat
thematterhasbeenreferredtotheauthoritycompetent
totakeasubstantivedecisiononthecaseinaccordance
withArticle5(2)orthatthedulyempoweredauthority
hasadoptedinterimmeasures,thegoodsshallbe
released,providedalltheimportorexportformalities
havebeencompliedwithandtheseizurehasbeenlifted.
2.Inthecaseofgoodssuspectedofinfringingdesign
rights,theowner,theimporterortheconsigneeofthe
goodsshallbeabletohavethegoodsinquestion
releasedortheirseizurelifted,againstprovisionofa
security,providedthat:
—thecustomsofficereferredtoinArticle5(1)has
beeninformed,withinthetimelimitreferredtoin
paragraph 1ofthisArticle,thatthematterhasbeen
referredtotheauthoritycompetenttotakea
substantivedecisionreferredtoinparagraph 1ofthis
Article,Conditionsgoverningactionbythecustomsauthorities
andbytheauthoritycompetenttotakeasubstantive
decision
Article5
1.Whereacustomsofficetowhichthedecision
grantinganapplicationbytheownerorholderofaright
hasbeenforwardedpursuanttoArticle4issatisfied,
afterconsultingtheapplicantwherenecessary,that
goodsenteredforfreecirculationorforexportorwhich
areunderatransitprocedurecorrespondtothe
descriptionofthecounterfeitorpiratedgoodscontained
inthatdecision,itshallsuspendreleaseofthegoodsor
seizethem.—onexpiryofthetimelimit,theauthorityempowered
forthispurposehasnotimposedinterimmeasures,
and

2.9.93 OfficialJournaloftheEuropeanCommunities NoC238/13
2.Thecounterfeitorpiratedgoodsmaybehanded
overtothepublicexchequer.Inthatcase,theprovisions
ofpoint(a)ofparagraph 1shallapply.—alltheimportorexportformalitieshavebeen
completed.
Thesecuritymustbesufficienttoprotecttheinterestsof
theownerorholderoftheright.Paymentofthesecurity
shallbewithoutprejudicetotheotheractionsopento
theownerorholderoftheright.Thesecurityshallbe
releasedifthatpersondoesnotexercisehisrightto
institutelegalproceedingswithin20workingdaysofthe
datewhenheisnotifiedofthesuspensionofreleaseor
theseizure.
3.Thecondidionsgoverningstorageofthegoods
duringtheperiodofsuspensionofreleaseorseizure
shallbedeterminedbyeachMemberState.3.Withoutprejudicetotheprotectionofconfidential
information,thecustomsofficeconcernedorthe
competentauthorityshallinformtheownerorholderof
theright,uponrequest,ofthenamesandaddressesof
theconsignor,oftheimporterorexporter,ofthemanu­
facturerandoftheconsigneeofthegoodsfoundtobe
counterfeitorpiratedandofthequantityofthegoodsin
question.
CHAPTERV
Provisionsapplicabletogoodsfoundtobecounterfeitor
piratedgoodsCHAPTERVI
Finalprovisions
Article7
1.Withoutprejudicetotheotherrightsofaction
opentotheownerofatrademarkwhichhasbeenfound
tobecounterfeitortheholderofacopyrightorneigh­
bouringrightoradesignrightwhichhasbeenfoundto
bepirated,MemberStatesshalladoptthemeasures
necessarytoallowthecompetentauthorities :Article8
1.Saveasotherwiseprovidedbythelawofthe
MemberStateconcerned,theacceptanceofan
applicationdrawnupinaccordancewithArticle3(2)
shallnotentitletheownerorholderofarightto
compensationwherecounterfeitorpiratedgoodsarenot
detectedbyacustomsofficeandtheirreleaseisnot
thereforesuspendedornomeasureistakeninterrupting
thetransitoperationasprovidedforArticleSCI"). (aasageneralrule,andinaccordancewiththe
relevantprovisionsofnationallaw,todestroygoods
foundtobecounterfeitorpirated,ordisposeof
themoutsidethechannelsofcommerceinsucha
wayastoprecludeinjurytotheownerorholderof
theright,withoutcompensationofanysort;
(b)totake,inrespectofsuchgoods,anyothermeasures
havingtheeffectofeffectivelydeprivingthose
responsibleforimportation,exportationortransitof
theeconomicbenefitsofthetransaction .2.Saveasotherwiseprovidedbythelawofthe
MemberStateconcerned,exercisebyacustomsofficeor
byanotherdulyempoweredauthorityofthepowers
conferredontheminregardtocombatingcounterfeitor
piratedgoodsshallnotrenderthemliabletothe
importerorexporteroranyotherpersonholdingrights
withrespecttothegoodsenteredforfreecirculationor
forexportorcarriedunderatransitprocedure,inthe
eventofhissufferinglossordamageasaresultoftheir
action.Thefollowing,interalia,shallnotberegardedas
havingsucheffect:
—re-exportingthecounterfeitorpiratedgoodsin
theunalteredstate,
3.Thecivilliabilityoftheownerorholderofaright
shallbegovernedbythelawoftheMemberStatein
whichthegoodsinquestionwereenteredforfreecircu­
lationorforexportorseizedduringatransitprocedure.—otherthaninexceptionalcases,simplyremoving
thetrademarkswhichhavebeenaffixedtothe
counterfeitgoodswithoutauthorization ,
—enteringthegoodsforadifferentcustoms
procedure.
Moreover,eachMemberStateshallimposepenaltiesto
discouragefurthertransactionsofthesamekind.Such
penaltiesmustbeeffective,commentate withtheir
purposeandhaveadequatedeterrenteffect.Article9
ThisRegulationshallnotapplytogoodsofa
non-commercial naturecontainedintravellers'personal
luggagewithinthelimitslaiddowninrespectofrelief
fromcustomsduty.

NoC238/14 OfficialJournaloftheEuropeanCommunities 2.9.93
Article10
TheprovisionsrequiredforapplyingthisRegulation
shallbeadoptedinaccordancewiththeprocedurelaid
downinArticle11.Article12
MemberStatesshallcommunicate allrelevantinfor­
mationontheapplicationofthisRegulationtothe
Commission .
TheCommission shallcommunicate thisinformationto
theotherMemberStates.
Thedetailsoftheinformationprocedureshallbedrawn
upintheframeworkoftheimplementingprovisionsin
accordancewithArticle11(2)and(3).Article11
1.TheCommissionshallbeassistedbythecommittee
setupbyArticle247ofRegulation(EEC)No2913/92.
Article13
Withintwoyearsfollowingtheentryintoforceofthis
Regulation,theCommissionshall,onthebasisofthe
informationreferredtoinArticle12,reporttothe
EuropeanParliamentandtheCouncilontheoperation
ofthesysteminstitutedthereunderandshallpropose
suchamendments andadditionsasneedtobemade
thereto.Aninitialevaluationshallbecarriedoutatthe
endofthefirstyear.2.TherepresentativeoftheCommissionshallsubmit
tothecommitteeadraftofthemeasurestobetaken.
Thecommitteeshalldeliveritsopiniononthedraft
withinatimelimitwhichthechairmanmaylaydown
accordingtotheurgencyofthematter,ifnecessaryby
takingavote.
Theppinionshallberecordedintheminutes;in
addition,eachMemberStateshallhavetherighttoask
tohaveitspositionrecordedintheminutes.
TheCommission shalltaketheutmostaccountofthe
opiniondeliveredbythecommittee.Itshallinformthe
committeeofthemannerinwhichitsopinionhasbeen
takenintoaccount.Article14
CouncilRegulation(EEC)No3842/86of1December
1986isrepealed.
3.TheCommitteemayexamineanymatter
concerningtheprohibitionofreleaseforfreecirculation,
exportortransitofcounterfeitorpiratedgoodsraised
bythechairman,onhisowninitiativeorattherequest
ofaMemberState.Article15
ThisRegulationshallenterintoforceon1July1994.
ThisRegulationshallbebindinginitsentiretyand
directlyapplicableinallMemberStates.