U.S. Imports: Section 337 Protection

U.S. businesses may seek administrative relief through Section 337 of the Tariff Act of 1930. Under this section, the International Trade Commission (ITC) determines whether there is unfair competition in the importation of products into the United States. Among other legal points, Section 337 declares the infringement of a U.S. patent, copyright, registered trademark, or mask work to be an unlawful practice in import trade.
 
Section 337 investigations require formal evidentiary hearings before an administrative law judge (ALJ). Parties to these investigations include complainants, respondents, and the ITC attorney representing the public interest. Following the evidentiary hearing, the ALJ will issue a finding on possible violations of Section 337. All decisions of the ALJ are subject to the review, modification and reversal of the ITC.  If a violation is found, the ITC may issue orders barring the importation of certain products into the United States. The ITC may also provide temporary relief to complainants pending final resolution of the investigation based on a showing of, among other things, irreparable harm in the absence of such temporary relief.
 
ITC orders are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the President of the United States within that 60-day period. Appeals may be taken to the U.S. Court of Appeals for the Federal Circuit. Violators of ITC Section 337 orders are liable for civil penalties of up to $100,000 a day or twice the value of the imported articles. Please see Section 337 of the Tariff Act of 1930, 19 U.S.C. 1337 for more information.

U.S. Customs Protection

U.S. businesses with IPR issues in China may also request assistance from the United States Customs & Border Protection (CBP). U.S. Customs and Border Protection maintains an aggressive IPR enforcement program which devotes substantial resources to target, intercept, detain, seize and forfeit shipments of IPR-violative goods. CBP maintains an on-line listing of resources that provide detailed information regarding enforcement procedures and programs. For more information, please visit the U.S. Customs & Border Protection website.

Filing a Complaint With the TCC

The Department of Commerce’s Trade Compliance Center (TCC) actively monitors and tracks trade barrier complaints filed by U.S. businesses. As well, the TCC maintains a trade barrier toolkit on its website, which provides comprehensive advice on dealing with trade problems. Companies seeking to file a trade barrier complaint may do so on the TCC website.