Authors

  • B.R. Ruziyev
    Head of the Department for Legal Protection of Intellectual Property at the Ministry of Justice of the Republic of Uzbekistan, Second-Class Legal Adviser, Uzbekistan

DOI:

https://doi.org/10.37547/tajpslc/Volume06Issue10-10

Keywords:

Intellectual property trademark counterfeit

Abstract

This article is devoted to highlighting some issues related to the problems of protection of rights to trademarks in import-export operations by customs authorities of the Republic of Uzbekistan and their solutions.


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PUBLISHED DATE: - 30-10-2024
DOI: -

https://doi.org/10.37547/tajpslc/Volume06Issue10-10

PAGE NO.: - 64-68

PECULIARITIES OF PROTECTION OF RIGHTS
TO TRADEMARKS BY CUSTOMS
AUTHORITIES IN IMPORT AND EXPORT
OPERATIONS IN THE REPUBLIC OF
UZBEKISTAN


B.R. Ruziyev

Head of the Department for Legal Protection of Intellectual Property at the
Ministry of Justice of the Republic of Uzbekistan, Second-Class Legal
Adviser, Uzbekistan

INTRODUCTION

Over the past five years, our country has

strengthened its trade and economic relations with

economically developed countries. As a result, in
2023, the volume of trade with international

partners increased by 23.8%, reaching $62.6

billion.
These indicators demonstrate the steady growth of

our foreign trade performance, which, in turn,

contributes

to

enhancing

Uzbekistan’s

international image, promoting entrepreneurship

and business development, expanding production,
and creating new jobs. This sets the foundation for

Uzbekistan to secure a prominent position among
economically and socially developed nations.

However, it is widely known that external

economic activities, while attractive, can also lead

to negative consequences that may harm human
health and well-being, infringe upon citizens'

rights, and affect the interests of the state and

society. Such situations often arise when dishonest
entrepreneurs import

counterfeit

goods

products that do not meet established standards
and have not been inspected for quality, and where

intellectual property rights are violated by failing
to sign agreements with intellectual property

owners or comply with trademark regulations.
For reference: counterfeit products are defined as

any unauthorized use of an intellectual property

object belonging to the rights holder.

RESEARCH ARTICLE

Open Access

Abstract


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Counterfeit goods frequently involve the misuse of

trademarks, which are state-registered distinctive
signs representing the names of products or

services.
Since counterfeit products are not subject to

necessary sanitary and hygiene checks, they not

only infringe upon the interests of intellectual

property owners but also harm society at large.
It is worth noting that 63% of counterfeit products

are manufactured in China , and 4% in Turkey. Both

China ($8 billion) and Turkey ($1.9 billion) are

among Uzbekistan’s major trading partners.

Globally, the value of counterfeit products seized

and confiscated by customs services ranges from

$200 billion to $360 billion annually.
Customs services play a crucial role as the primary

state agency responsible for preventing the entry

of counterfeit products into the country.
It is important to highlight that, before the new

Customs Code was adopted on January 20, 2016,
the rights to intellectual property objects were

regulated by Article 9 of the Customs Code of
December 26, 1997. This article allowed for the

restriction of the import and export of intellectual
property objects into and out of Uzbekistan to

safeguard national security, public order, morality,
human life and health, environmental protection,

and consumer interests. However, this provision
was insufficient to fully protect intellectual

property rights, as it established only a general
norm without specifying clear mechanisms for

protection and enforcement.
In the revised Customs Code of the Republic of

Uzbekistan, a dedicated chapter is devoted to the
protection of intellectual property (IP) rights. This

chapter outlines specific procedures and principles
for customs authorities to determine which goods

are subject to IP rights enforcement, the
registration, maintenance, and removal of

intellectual property objects from the customs
register.
Moreover, amendments and additions to the

Customs Code were introduced through Law No.

LRU-913, dated February 27, 2024, aimed at
strengthening the customs authorities' ability to

enforce IP rights and protect against counterfeit

goods during export-import processes.
According to these amendments, customs

authorities are now granted the right to monitor

and take action regarding IP rights violations on
goods not listed in the customs register and

without a formal request from the rights holder,

under the "ex officio" principle.
The adoption of such legal norms has created

favorable conditions for foreign brand owners and

major entrepreneurs to introduce their products
into the Uzbek market, ensuring their protection

from counterfeit goods. This contributes to
fostering a healthy trade environment in

Uzbekistan, improving the investment climate,
introducing innovative technologies, and attracting

investment.
The protection of intellectual property objects by

customs authorities is carried out in two stages:
1. At the first stage, the rights holders or their

authorized representatives register intellectual

property objects in the "Customs Register of

Intellectual Property Objects" (hereafter referred
to as the Register).
For reference: The Register is maintained by the

State Customs Committee and serves as software
that allows customs officers to monitor and

prevent the entry and exit of goods that infringe
upon intellectual property rights during customs

clearance. Currently, 331 trademarks are
registered in the Register.
2. At the second stage, if signs of infringement are

detected through a risk analysis system or at the

request of the rights holder or their representative
for goods listed in the Register, the release of such

goods into the import regime is suspended for a
period of 10 days. Following a court decision, these

goods may either be removed from the territory of
Uzbekistan or destroyed.
Additionally, customs authorities are empowered

to independently identify and take action against

counterfeit products, even if they are not listed in
the Register and without a request from the rights

holder, under the "ex officio" principle.
In the first nine months of this year, customs


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authorities protected intellectual property rights in

9 cases of imported goods (worth $13.2 billion)
under the "ex officio" principle.
It is important to note that, on average, more than

2,000 goods are processed daily under the customs
import regime and enter the markets and retail

outlets of Uzbekistan.
Despite the ongoing efforts to effectively protect

intellectual property rights, the number of
protected intellectual property objects remains

relatively low in comparison to the volume of

goods entering the country’s customs territory.

One of the main reasons for this challenge is that

customs officers cannot physically inspect every

imported product to verify compliance with
intellectual property rights by comparing each

item with those listed in the Register, due to the
high volume of imports. This creates the possibility

that counterfeit goods may bypass customs control.
According to Article 189 of the Customs Code of the

Republic of Uzbekistan, during customs control,

customs authorities apply a risk management

system to identify the goods and vehicles that
should be inspected, as well as the documents of

legal and natural persons, in order to prevent
violations of customs legislation. The system is also

used to select the forms and scope of customs
control to be applied.
The strategy and tactics of applying the risk

management system are determined through the
collection and processing of information, risk

analysis and assessment, and the development of

risk management measures.
One of the main advantages of the risk

management system is that it automatically selects

goods for inspection based on the principle of risk
assessment, categorizing items as high-risk or low-

risk, and customs officers then conduct inspections
accordingly.
The system operates by creating risk profiles based

on data analysis within customs authorities,

categorizing goods into high risk (red), medium
risk (yellow), and low or no risk (green) channels.

For instance, if an indivisible product (such as a
pipeline) is imported by an importer with no

history of violations, and is being shipped directly

from the manufacturing plant, it is automatically
classified as low-risk.
Conversely, if a product consists of multiple goods

and is imported from a country or manufacturer
unrelated to the product, or by an importer not

typically associated with such goods (e.g., Italian

furniture imported by a food importer from China),
it is classified as high-risk.
As noted above, the Register serves as a database

that assists customs authorities in monitoring
compliance with intellectual property rights.
The Register is a separate software module within

the Unified Automated Information System of the

Customs Committee and is centrally managed by
the main office based on information provided by

the rights holders.
The data entered into the system is automatically

organized into a registry format and published on

the official website of the Customs Committee as
publicly accessible information.
The Register contains the following information on

intellectual property objects:

• Registration number and date of entry into the

register;

• Name (description, characteristics, type);

• Protection number under the Harmonized

Commodity Description and Coding System (HS
code);

• Information about the rights holder;

• Document n

umber, issuance date, and validity

period of the protection certificate;

• Information about the authorized representative

of the rights holder;

• Document confirming the powers of the

authorized representative, including the issuance
date and validity period;

• Period of registration in the Register;

• Reason for removal from the Register;

• Information on counterfeit products.

Since the Register is an open source, participants in

foreign economic activity can access it during


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customs clearance to verify whether their goods

are subject to intellectual property rights or
whether they are not counterfeit.
This, in turn, allows participants in foreign

economic activity to avoid unintentionally
violating the exclusive rights of intellectual

property holders when exporting or importing

trademarked goods, as well as to prevent the
clearance of goods that are deceptively similar.
According to Article 258 of the Customs Code of the

Republic of Uzbekistan, the customs cargo
declaration is a document submitted to the

customs authorities by the declarant or customs
broker, containing accurate information about the

goods being placed under a specific customs
regime.
The customs cargo declaration (CCD) can be

submitted either in electronic form or as a written

document. The circumstances under which
declarations can be submitted in written form, as

well as the relevant goods and customs procedures,
are determined by the Cabinet of Ministers of the

Republic of Uzbekistan. In cases where goods are
declared in written form, the written declaration

must also be accompanied by an electronic copy.
Currently, CCDs are filled out electronically and

entered into the Unified Automated Information
System of the Customs Committee.
The process of completing and filing the CCD is

governed by the Resolution of the State Customs
Committee of the Republic of Uzbekistan, "On

Approval of the Instruction on Completing the

Customs Cargo Declaration," which was registered
with the Ministry of Justice of the Republic of

Uzbekistan on April 6, 2016 (registration number
No. 2773).
In accordance with this resolution, when goods are

placed under export or import customs regimes,
information about the declared goods is entered in

box 31 of the CCD ("Packages and Description of
Goods. Marks, Numbers

Container Numbers

Description of Goods").
Each piece of information begins on a new line and

is numbered, with item number 1 indicating the
name of the goods (whether trade, commercial, or

traditional), trademarks, brands, models, articles,

grades, standards, and other technical and
commercial characteristics.
Additionally, the brand and name of the trademark

are entered in a designated field (if the goods have
no trademark or brand, this is indicated as "no

trademark" or "no brand").
Moreover, information about the exporter or

consignor is entered in box 2 of the CCD, and
information about the importer or consignee is

entered in box 8.
Given this structure, it would be logical to establish

an automatic control system by comparing the
information entered in the CCD with the data from

the Register during the customs clearance process.
In this regard, it would be necessary to integrate

the "Electronic Customs Clearance" (hereinafter

referred to as ECC) software of the State Customs

Committee’s Unified Auto

mated Information

System with the Register, and to establish
automatic control through the following algorithm:

• Box 2 of the CCD (Exporter/Consignor) and box 8

(Importer/Consignee) should be cross-checked

with the Register's information on the "rights
holder and authorized representative" (name and

taxpayer identification number).

• Box 31 of the CCD (Packages and Description of

Goods, Marks, Numbers

Container Numbers

Description of Goods) should be compared with the

Register's information on the "name of the
intellectual property object" (description, type,

characteristics).
Based on this comparison, when the CCD is filled

out electronically and submitted to the ECC system,

the system will compare the name of the declared
goods in box 31 with the intellectual property

object listed in the Register. If they match, but the

information in box 2 (Exporter/Consignor) and
box 8 (Importer/Consignee) does not align with

the "rights holder or authorized representative" in
the Register, the system will signal that another

entity is using the intellectual property object.
Subsequently, the customs officer can inspect the

accompanying documentation for the goods or

conduct a physical customs inspection. If an


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intellectual property rights violation is detected,

appropriate measures can then be taken.
An analysis of the actions undertaken by customs

authorities to protect intellectual property rights

reveals certain distinctive characteristics of the
protection mechanisms in place.
Currently, legal frameworks have been established

by customs authorities for the protection of

trademarks, a type of intellectual property, and a
number of measures have been implemented to

safeguard intellectual property rights.
However, the identification of infringements of

intellectual property rights, particularly the
detection of trademarks that are deceptively

similar or identical to the original marks, requires
specialized knowledge on the part of customs

officers. From this perspective, the introduction of
new methods for protecting intellectual property

rights, utilizing artificial intelligence, information
technology, and automated systems, has become a

pressing task.

REFERENCES
1.

https://www.gazeta.uz/oz/2024/01/22/trad

e/

2.

https://www.centrattek.ru/novosti/1526/

3.

https://daryo.uz/k/2024/09/28/ozbekiston-

tashqi-savdo-aylanmasidagi-top-10-davlatlar

4.

https://timeseller.ru/news/2015/02/27/s_na

chala_goda_v_moskve_arestovali_partiyu_kont

rafakta_chasov_na_230_mln_rublej.html

5.

https://lex.uz/docs/2876354

References