Did you know that Hong Kong Customs seized over 4 million counterfeit items worth HK$309 million in 2024 alone? As one of the world’s busiest trading hubs, Hong Kong faces constant pressure from organized counterfeiting networks seeking to exploit its strategic position. Understanding how intellectual property protection intersects with customs enforcement isn’t just legal compliance—it’s essential business protection in today’s global marketplace.

Hong Kong’s Frontline Defense: The Customs and Excise Department

Hong Kong’s geographical position as a major international trade and logistics hub makes it both a strategic asset and a potential vulnerability in the global fight against intellectual property infringement. The Hong Kong Customs and Excise Department (C&ED) serves as the exclusive government agency responsible for criminal sanctions against copyright and trademark infringements, operating under a comprehensive legal framework designed to protect both IP rights owners and legitimate traders.

Why Hong Kong is a Critical Border Control Point

Hong Kong is frequently targeted as a strategic hub for the transshipment of counterfeit goods due to its proximity to manufacturing bases on the Chinese mainland and its world-class transportation infrastructure. This reality necessitates vigilant border enforcement to prevent Hong Kong from becoming a conduit for counterfeit goods entering global markets.

The C&ED adopts a multi-pronged enforcement strategy targeting IP infringement at three distinct levels:

• Cross-boundary enforcement: Focused on illegal activities at import, export, and transhipment levels
• Local enforcement: Targeting domestic distribution and retail of counterfeit goods
• Online and technology enforcement: Addressing digital piracy and e-commerce infringement

The Legal Framework: Four Pillars of IP Protection

1. Trade Descriptions Ordinance (Cap. 362)

The Trade Descriptions Ordinance serves as a critical consumer protection law that directly impacts IP enforcement at the border. Substantially amended in 2013, the TDO prohibits false trade descriptions and forged trade marks on goods, as well as five specific types of unfair trade practices.

2. Copyright Ordinance (Cap. 528)

The Copyright Ordinance establishes comprehensive protection for copyright works and specifically addresses import and export of infringing copies. Copyright is infringed when a person, without the licence of the copyright owner, imports into Hong Kong or exports from Hong Kong (otherwise than for private and domestic use) a copy of the work which is, and which they know or have reason to believe to be, an infringing copy.

3. Trade Marks Ordinance (Cap. 559)

The Trade Marks Ordinance, which came into force on April 4, 2003, establishes Hong Kong’s modern trademark registration and protection system. A significant development occurred with the Trade Marks (Amendment) Ordinance 2020, which conferred expanded enforcement powers on the Customs and Excise Department, consolidating all trademark-related enforcement responsibilities under the C&ED.

4. Prevention of Copyright Piracy Ordinance (Cap. 544)

This specialized ordinance addresses specific aspects of copyright piracy, particularly focusing on optical disc manufacturing and video recording in public entertainment venues. The vigorous enforcement of provisions against pirated optical discs has resulted in retail outlets selling PODs being virtually eliminated in Hong Kong in recent years.

The IP Recordation System: Your Gateway to Border Protection

Hong Kong operates a voluntary IP recordation system that enables rights holders to register their intellectual property with Customs, facilitating more effective border enforcement. While recordation is not mandatory, it significantly enhances the C&ED’s ability to identify and intercept counterfeit goods.

The Competent Examiner: A Critical Requirement

The appointment of a competent examiner represents one of the most distinctive features of Hong Kong’s IP recordation system. The two integral requirements for successful recordation are: (1) the IP owner must designate a competent examiner to examine seizures, and (2) there must be a current case of trademark or copyright infringement occurring in Hong Kong.

The nominated examiner must possess the expertise to distinguish between genuine goods, counterfeit goods, and parallel-import products. Upon submission of the recordation application, the C&ED arranges a formal interview to assess the examiner’s competence.

Recordation Application Requirements

Required documentation for IP recordation includes:

• Evidence of subsistence and ownership of the IP right (e.g., Trade Mark Certificate for registered trademarks)
• Proof of alleged infringement (sample of infringing copy alongside genuine copy for comparison)
• Written authorization if filing through a representative
• Appointment letter designating a competent examiner
• Undertaking to assist Customs in identification of seized goods and testify in court as a prosecution witness

Border Enforcement in Practice: From Detection to Destruction

The Seven-Step Enforcement Process

1. Initial detection: Customs conducts random inspections at all border points including air cargo terminals, container ports, and land boundary control points
2. Detention: Suspicious goods are detained pending examination
3. Notification: If the IP has been recorded, the rights holder or their designated examiner is notified
4. Examination: The competent examiner inspects the detained goods to determine authenticity
5. Investigation: Customs conducts its own investigation, often supplemented by intelligence gathering
6. Prosecution decision: If goods are confirmed as infringing, Customs consults with the Department of Justice regarding prosecution
7. Disposal: Following conviction, infringing goods are typically destroyed to prevent re-entry into commerce

Enforcement Statistics: A Year of Record Results

Hong Kong Customs demonstrated significantly enhanced enforcement effectiveness in 2024, reflecting heightened intensity in combating IP infringement:

Notable 2024 Operations

• August 2024 territory-wide operation: Targeted counterfeit perfumes, cosmetics, and skincare products, resulting in over 5,000 suspected counterfeit items seized and 8 arrests
• October 2024 operation: At Tuen Mun River Trade Terminal, seized approximately 74,700 items of suspected counterfeit goods valued at HK$14.9 million
• November 2025 operations: Seized approximately 3,300 suspected counterfeit goods with estimated market value of HK$2.5 million at the Hong Kong-Zhuhai-Macao Bridge Hong Kong Port

Practical Guidance for Rights Holders

Six Steps to Maximize Border Protection

1. Complete IP Recordation: Despite the rigorous requirements, recordation with Hong Kong Customs provides the most effective mechanism for border enforcement
2. Ensure Trademark Registration in Hong Kong: In practice, Customs generally requires trademarks to be registered in Hong Kong as a pre-requisite for recordation
3. Designate Hong Kong-Based Examiners: Given the requirement for potentially short-notice examinations, appointing Hong Kong-based representatives facilitates rapid response
4. Invest in Examiner Training: Provide comprehensive training covering product authentication, manufacturing processes, and distribution networks
5. Maintain Updated Records: Keep Customs informed of changes in product lines, packaging, authentication features, and authorized distribution channels
6. Commit to Cooperation: Be prepared to provide active assistance including participation in raid actions and testimony in court proceedings

Reporting Suspected Infringement

If you encounter activities suspected to be in contravention of IP laws, report them through:

• Customs Hotline (24 hours): 2545 6182
• Online reporting: Hong Kong Customs website notification system
• Written notification: For trademark owners whose IP has been recorded with Customs

Emerging Trends and Future Developments

Enhanced Cross-Border Cooperation

The Greater Bay Area integration initiative has strengthened cooperation between Hong Kong, Guangdong, and Macao customs authorities. The Intellectual Property Database for the region facilitates real-time information sharing and coordinated enforcement operations, recognizing that IP infringement is often transnational in nature.

Technology-Enhanced Enforcement

Hong Kong Customs is increasingly leveraging technology for IP enforcement, including advanced risk profiling systems for cargo screening, digital databases for recorded IP information, online reporting systems, and enhanced data analytics to identify trafficking patterns.

Focus on E-Commerce and Digital Infringement

Recognizing the shift toward online commerce, the C&ED has expanded its online and technology-level enforcement strategy. This includes monitoring e-commerce platforms, investigating online sellers, and coordinating with platform operators to remove infringing listings.

In today’s globalized economy, protecting your intellectual property at Hong Kong’s borders isn’t optional—it’s essential business strategy. With counterfeit goods becoming increasingly sophisticated and organized crime networks exploiting trade routes, proactive engagement with Hong Kong Customs through the recordation system provides the most effective defense. The combination of rigorous legal frameworks, dedicated enforcement resources, and innovative cooperation mechanisms makes Hong Kong’s IP border protection system one of the most effective in the world for rights holders willing to invest in proper registration and ongoing cooperation.