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Article  1718:  Enforcement  of  Intellectual  Property  Rights  at  the  Border

1.  Each  Party  shall,  in  conformity  with  this  Article,  adopt  procedures  to  enable  a  right  holder,  who  has  valid  grounds  for  suspecting  that  the  importation  of  counterfeit  trademark  goods  or  pirated  copyright  goods  may  take  place,  to  lodge  an  application  in  writing  with  its  competent  authorities,  whether  administrative  or  judicial,  for  the  suspension  by  the  customs  administration  of  the  release  of  such  goods  into  free  circulation.  No  Party  shall  be  obligated  to  apply  such  procedures  to  goods  in  transit.  A  Party  may  permit  such  an  application  to  be  made  in  respect  of  goods  that  involve  other  infringements  of  intellectual  property  rights,  provided  that  the  requirements  of  this  Article  are  met.  A  Party  may  also  provide  for  corresponding  procedures  concerning  the  suspension  by  the  customs  administration  of  the  release  of  infringing  goods  destined  for  exportation  from  its  territory.

2.  Each  Party  shall  require  any  applicant  who  initiates  procedures  under  paragraph  1  to  provide  adequate  evidence:

The  competent  authorities  shall  inform  the  applicant  within  a  reasonable  period  whether  they  have  accepted  the  application  and,  if  so,  the  period  for  which  the  customs  administration  will  take  action.

3.  Each  Party  shall  provide  that  its  competent  authorities  shall  have  the  authority  to  require  an  applicant  under  paragraph  1  to  provide  a  security  or  equivalent  assurance  sufficient  to  protect  the  defendant  and  the  competent  authorities  and  to  prevent  abuse.  Such  security  or  equivalent  assurance  shall  not  unreasonably  deter  recourse  to  these  procedures.

4.  Each  Party  shall  provide  that,  where  pursuant  to  an  application  under  procedures  adopted  pursuant  to  this  Article,  its  customs  administration  suspends  the  release  of  goods  involving  industrial  designs,  patents,  integrated  circuits  or  trade  secrets  into  free  circulation  on  the  basis  of  a  decision  other  than  by  a  judicial  or  other  independent  authority,  and  the  period  provided  for  in  paragraphs  6  through  8  has  expired  without  the  granting  of  provisional  relief  by  the  duly  empowered  authority,  and  provided  that  all  other  conditions  for  importation  have  been  complied  with,  the  owner,  importer  or  consignee  of  such  goods  shall  be  entitled  to  their  release  on  the  posting  of  a  security  in  an  amount  sufficient  to  protect  the  right  holder  against  any  infringement.  Payment  of  such  security  shall  not  prejudice  any  other  remedy  available  to  the  right  holder,  it  being  understood  that  the  security  shall  be  released  if  the  right  holder  fails  to  pursue  its  right  of  action  within  a  reasonable  period  of  time.

5.  Each  Party  shall  provide  that  its  customs  administration  shall  promptly  notify  the  importer  and  the  applicant  when  the  customs  administration  suspends  the  release  of  goods  pursuant  to  paragraph  1.

6.  Each  Party  shall  provide  that  its  customs  administration  shall  release  goods  from  suspension  if  within  a  period  not  exceeding  10  working  days  after  the  applicant  under  paragraph  1  has  been  served  notice  of  the  suspension  the  customs  administration  has  not  been  informed  that:

Provided  that  all  other  conditions  for  importation  or  exportation  have  been  met.  Each  Party  shall  provide  that,  in  appropriate  cases,  the  customs  administration  may  extend  the  suspension  by  another  10  working  days.

7.  Each  Party  shall  provide  that  if  proceedings  leading  to  a  decision  on  the  merits  of  the  case  have  been  initiated,  a  review,  including  a  right  to  be  heard,  shall  take  place  on  request  of  the  defendant  with  a  view  to  deciding,  within  a  reasonable  period,  whether  these  measures  shall  be  modified,  revoked  or  confirmed.

8.  Notwithstanding  paragraphs  6  and  7,  where  the  suspension  of  the  release  of  goods  is  carried  out  or  continued  in  accordance  with  a  provisional  judicial  measure,  Article  1716(6)  --719-Art.  1716--  shall  apply.

9.  Each  Party  shall  provide  that  its  competent  authorities  shall  have  the  authority  to  order  the  applicant  under  paragraph  1  to  pay  the  importer,  the  consignee  and  the  owner  of  the  goods  appropriate  compensation  for  any  injury  caused  to  them  through  the  wrongful  detention  of  goods  or  through  the  detention  of  goods  released  pursuant  to  paragraph  6.

10.  Without  prejudice  to  the  protection  of  confidential  information,  each  Party  shall  provide  that  its  competent  authorities  shall  have  the  authority  to  give  the  right  holder  sufficient  opportunity  to  have  any  goods  detained  by  the  customs  administration  inspected  in  order  to  substantiate  the  right  holder's  claims.  Each  Party  shall  also  provide  that  its  competent  authorities  have  the  authority  to  give  the  importer  an  equivalent  opportunity  to  have  any  such  goods  inspected.  Where  the  competent  authorities  have  made  a  positive  determination  on  the  merits  of  a  case,  a  Party  may  provide  the  competent  authorities  the  authority  to  inform  the  right  holder  of  the  names  and  addresses  of  the  consignor,  the  importer  and  the  consignee,  and  of  the  quantity  of  the  goods  in  question.

11.  Where  a  Party  requires  its  competent  authorities  to  act  on  their  own  initiative  and  to  suspend  the  release  of  goods  in  respect  of  which  they  have  acquired  prima  facie  evidence  that  an  intellectual  property  right  is  being  infringed:

12.  Without  prejudice  to  other  rights  of  action  open  to  the  right  holder  and  subject  to  the  defendant's  right  to  seek  judicial  review,  each  Party  shall  provide  that  its  competent  authorities  shall  have  the  authority  to  order  the  destruction  or  disposal  of  infringing  goods  in  accordance  with  the  principles  set  out  in  Article  1715(5)  --719-Art.  1715--.  In  regard  to  counterfeit  goods,  the  authorities  shall  not  allow  the  re  exportation  of  the  infringing  goods  in  an  unaltered  state  or  subject  them  to  a  different  customs  procedure,  other  than  in  exceptional  circumstances.

13.  A  Party  may  exclude  from  the  application  of  paragraphs  1  through  12  small  quantities  of  goods  of  a  non-commercial  nature  contained  in  travelers?  personal  luggage  or  sent  in  small  consignments  that  are  not  repetitive.

14.  Annex  1718.14  --719-Anexo  1718.14--  applies  to  the  Parties  specified  in  that  Annex.