Centralised Bond Management Module for IPR Enforcement from 15 March 2011

Subject: Intellectual Property Rights (IPRs) Enforcement regime – Board’s Circular No. 10/2011-Customs dated 24-Feb-2011 - web enabled Centralised Bond Management module

[Ref: JNCH Public Notice No 28/2011 dated 10 March 2011]

Attention of all Custom House Agents (CHA) and members of the trade is invited to the CBEC’s Circular No. 10/2011-Customs dated 24-Feb-2011 on the implementation of Centralised Bond Management Module as part of the existing Automated Recordation and Targeting System (ARTS) for IPR Protection.  The main objective of this system is to provide for a single Centralized Bond account with security that can be used at all ports in India, so that the right holders do not have to rush to different Customs formations to execute consignment specific bonds with securities, in case of interdiction of allegedly infringing consignments at different Customs formations. The details of Centralized Bond Management module are explained in the aforementioned CBEC Circular.

2.  The Centralised Bond Management module under ARTS for IPR Protection will be implemented with effect from 15-March-2011.

3. This module is part of the existing ARTS module which has been hosted on http://www.icegate.gov.in/ and can be accessed by following the link http://ipr.icegate.gov.in/IPR/index.jsp. A new link has been added to the Home page of ARTS for viewing the Bond Registration Number (BRN) details.

4.   This module allows the creation of a Centralised Bond Account for an IPR holder registered at a Customs location. This Account shall have a unique number known as BRN.  This Bond Account can be credited with Bond amount by execution of Bonds and with security amount by submission of Bank Guarantees of appropriate value. Such credits can be topped up from time to time as required. The credits can be done only by the Customs location where the IPR is registered and hence BRN maintained.  The credits can be debited at any Customs location where the right holder needs to provide Bond/Bank Guarantee in relation to interdiction of allegedly infringing goods.  Re-credit including partial re-credit of debits made in the BRN Account, can be made only by the Customs location where debit has been made. Whenever any transaction (either credit, debit or re-credit, including partial re-credit) is done in any Centralized Bond Account, an auto-generated e-mail will be sent to the right-holder/authorized person at their registered e-mail id.

5.   The existing right-holders, who have registered their rights with the Customs authorities (equipped with a valid UPRN) can migrate to the Centralised Bond Management System by communicating their willingness and submitting the Centralized Bond with security, as prescribed. Otherwise, they will continue to operate in the existing system of general bond and consignment specific bonds.

6.   A Centralized Bond (which will be a running bond) can be registered only at the Customs location where the UPRN is registered. The right-holders exercising the centralized bond will have to necessarily furnish a centralized bond, in the format as per Annexure-I to the CBEC Circular No. 10/2011-Customs dated 24-Feb-2011, and security in the prescribed format for an amount equivalent to 25% of the value of the centralized bond.

7.   Upon fulfillment of these requirements by the right-holder, the Customs formation, where the right-holder is registered, will generate an online Centralized Bond Registration Number (BRN), which will be communicated to the right-holder/authorized representative at the registered e-mail id mentioned in the notice given by the right-holder. This BRN will have to be quoted in all correspondence, regarding the Centralized Bond Account, with the Custom authorities.

8.   If a right holder has registered more than one IPR with Customs and hence holds more than one UPRN, all these UPRNs can be linked to one BRN at the Customs location where this BRN is generated. However, this linkage will be possible only if the applicant’s name in case of all UPRNs sought to be linked is the same. This linking can be done of UPRNs of IPRs registered at other Customs locations also. In such case, the BRN Account can be used for proceedings vis a vis all linked UPRNs at all Customs locations.

9.  In case of interdiction of any suspected infringing consignments at this location, the right-holder has to inform in writing to the IPR Cell duly mentioning the details of their BRN along-with the particulars of debit to be made in the Bond and the security accounts so that the same can be verified and debited by the IPR Cell.   If the right-holder fails to submit such a letter, the Custom authorities will be under no obligation to suspend the clearance of the allegedly infringing goods. It is the responsibility of the right-holder to ensure that the centralized bond and security account has sufficient balance. In case of inadequate balance, the same can be supplemented by executing a supplementary bond with necessary security at the Custom location where the BRN Account is maintained.

10.  For this purpose, an option to view the details of the BRN is provided in the home page of the ART System for IPR Protection. The details can be viewed by entering a valid UPRN and BRN. A printout of the same can also be taken by clicking on the “Printer” icon available at the bottom of the page.

11. The Public Notice No. 56/2007 dtd 06/12/2007 stands modified to the above extent.

12.  In case of any doubt, the right-holder/authorized representative is requested to approach the Joint / Addl. Commissioner of Customs (IPR Cell).

F No. SG/Misc – 81/2010 IPR JNCH dated 10/03/2011