The Latest News of China IP (2017S03)

                                                                                          1    The Latest News of China IP (2017S03) Part I：New Trends of Food Safety: ............................................ 2 1. Imported Foods Including Some Well-Known Foods Have Serious Problem of Excessive Additives ................................................................................................... 2 2. “Supervision and Management Measures on the Safety of Import and Export Food” Will Come Out ............................................................................................................ 5 3. Compulsory Certificates for All Imported Food Cause the Foreign Food Enterprises to Complain A Lot ....................................................................................................... 7 Part II：Introduction on the Latest Food Safety Cases: ........... 9 4. CFDA for the First Time Made Administrative Penalties of Off-limits Industry for the Person Responsible for the Issues ............................................................................ 9 5. An Eventful Year of Nestle .................................................................................... 11 6. CFDA Reminds the Consumers to Notice the Food Safety of Moon Cake ........... 12 7. The Court Punished the Online Vendor to Compensate Tenfold for Food Violations…. ............................................................................................................. 14 8. “RED BULL” Follows “RED POT”, It Is A War Without Smoke .............................. 16 9.“Daigou”Also Has Forbidden Zone, “Daigou”Contact Lenses in Wechat Moments Was Charged With Criminal Offence ....................................................................... 17 Copyright© 2017 Shanghai HFG Law Firm All Rights Reserved 2 Part I：New Trends of Food Safety: 1. Imported Foods Including Some Well-Known Foods Have Serious Problem of Excessive Additives In September 2017, the State Administration of Quality Supervision, Inspection and Quarantine (hereinafter referred to as "AQSIQ") announced that a total of 233 batches of imported food from 34 countries or regions were tested as unqualified by the inspection and quarantine institutions, among which 67 batches were tested out the use of additives beyond the scope. Beverages, pastry biscuits and crackers and sugar food have more serious problems in these 67 batches, including some of well-known international brands, such as GODIVA, Nissin, Nestle, etc. China has strict requirements for the use of food additives. The imported foods shall be deemed as "substandard" if the food additives beyond the range and quantity are tested out. The substandard products found this time include Nissin Udon noodles of doufu or curry flavor, which have used nutrition enhancers Vitamin B1, B2 out of scope, America Nestle chocolate powder, which have used the food additives like copper gluconate out of scope, and Godiva truffle chocolates, which have used potassium sorbate out of scope, etc. AQSIQ said that these 233 batches of substandard food have been returned or destroyed by the ports according to law, and did not flow into the domestic market. Information of Food & Cosmetics Prohibited to Access in July 2017(Partial List)                                                                                           3    4 【HFG’s comments】The edible food with excessive food additives have great harms to human body especially for the vulnerable groups such as kids and elderly, that is why we make strict requirements for the amount of additives added in food. In the food tested as substandard this time, sugar, pastry biscuits and crackers and beverage products account for a large proportion, the main consumer groups of which are kids. So once such food flow into market, we can predict that serious problem shall appear. China's standards for food additives are different with those of foreign countries, that is why the problem of excessive additives in imported food is the frequenter of 5 media reports. All these “substandard” imported food are made based on the production standards of its country of origin, so problem of excessive food additives appears after entering China. It is understood that China's standards for food additives in 2020 are expected to be geared to international standards. The "Guiding Opinions on Promoting the Healthy Development of the Food Industry" points out that the relevant departments will actively promote China’s standards for food additives and other standards to be geared to international standards, which is undoubtedly good news for many imported food enterprises. 2. “Supervision and Management Measures on the Safety of Import and Export Food” Will Come Out The AQSIQ on September 13, 2017 issued “Supervision and Management Measures on the Safety of Import and Export Food (Draft)" (hereinafter referred to as "Measures") in WTO and sought for opinions, which based on "Food Safety Law of the People's Republic of China ". The revised draft contains six chapters, fifty-seven articles. The "Measures" for the first time makes clear that import and export food production operators include: Overseas exporters or agents and production enterprises which export food to China, importers which import food to China, production enterprises of exported food and exporters. In view of food safety issues, the entry-exit inspection and quarantine departments at various regions and relevant support departments are added into the inspection and supervision departments based on the FDA and AIC, which shall conduct inspection, quarantine, supervision and management for the import and export food under the guidance of the AQSIQ by the way of conformity assessment. 6 The "Measures" also regulates that imported food of the import and export enterprises should comply with our laws and regulations and national food safety standards. Importing food which has no national food safety standards to comply with shall be in compliance with the relevant standards temporarily applied decided by the health administrative department of the State Council. New food raw materials or the food made of new food raw materials should be through the safety inspection of health administrative departments under State Council before import. The "Measures" at the same time stresses that the overseas food production enterprises which export food to China should get the register approval of AQSIQ. The product catalog related to those enterprises needed to get register approval is made and adjusted by the AQSIQ, the product catalog and the list of enterprises approved to register shall be published. 【HFG’s comments】In recent years, with the economic globalization and the growing international trade, food safety issues are frequent in some countries and regions, which also often affect our country, such as the famous KFC Sudan Red event. Food safety issues are big problems concerning the people’s livelihood, so which are always touching the sensitive nerves of the masses. Although the existing laws and regulations are strict, it is still lacking in operational level, so from the practical level to further restrict the import and export food safety issues has become a top priority, so this“Supervision and Management Measures on the Safety of Import and Export Food (draft)” comes into being. This "Measures" and the "Food Safety Law of the People's Republic of China" are combined to form an effective food health legal system. At present, China's food quality and safety situation is not satisfactory, while the quality and safety accidents of the imported food are frequent. The "Measures" for the gray area of the quality and safety of the import and export food in China makes a detailed provision to prevent import and export food safety accidents in the practical level. 7 3. Compulsory Certificates for All Imported Food Cause the Foreign Food Enterprises to Complain A Lot In April 2016, the AQSIQ sent a notice to the embassies of the EU member states, requiring the use of unified official certificates for all food exported to China except for specific certification requirements. AQSIQ has clearly defined the certificate, that is, "the official certification documents issued by the competent authorities or their authorized / designated agencies at exporting countries / regions to prove that the corresponding batches of food exported to China have been manufactured, processed, stored, transported and exported and fit for human consumption under the effective supervision of the competent authorities at the export countries / regions, in addition, the certificates should also include such clear information as production and processing enterprise information, product information, trade information. In June 2016, the AQSIQ issued the "Management Measures on the Attached Certificates of Imported Food (exposure draft)". After 18 months of transition, according to regulations, "Management Measures on the Attached Certificates of Imported Food" (hereinafter referred to as "Measures") will take effect on October 1, 2017. But all walks of life have different comments for the implementation of the "Measures". The AQSIQ proposes in the exposure draft of the “Measures” that the purpose of the “Measures” is to ensure the quality safety of the imported food and realize the effective convergence of imported food supervision and government regulation of the countries and regions which export food to China. According to the "White Paper of China’s Quality Safety of Imported Food in 2016" issued by the AQSIQ in July 2017, a total of 46.62 billion US dollars of imported food were inspected and tested in 2016 in China, of 8 which the food imported from the EU ranked first in terms of the value of trade. However, products imported from 82 countries / regions were inspected as unqualified, the main unqualified reasons of which are excessive food additives and the microbial pollution and so on. For the implementation of the new "Measures", the German ambassador to China, Michael Clauss said that (These requirements) may significantly reduce the import volume of food, which seem to protect Chinese producers rather than defend food safety". The EU Chamber of Commerce also believes that other countries in the world often require only official certificates of meat, dairy and perishable food and it is not necessary for the AQSIQ to require relevant official certificates for low-risk food. “It is a big problem from the symbolic point of view, because it gives a sign that since the access conditions of the food industry can worsen, so do the other industries," said HE Mochi, president of the European Union Chamber of Commerce. Finally, by studying the views of the parties, the AQSIQ decides to provide a two-year transition period from October 1, 2017 to September 30, 2019. 【HFG’s comments】With the improvement of living standards of our residents, the demand for imported food and other commodities has increased rapidly. In the past five years, the average annual growth rate of the trade volume of China’s imported food is 2.6%. Part of the imported products have become an important source of supply for our market, for example, imported meat in 2016 accounts for 5.1% of China's domestic meat supply. With the continuous influx of imported food, the safety problems for imported food are frequently appearing, such as the imported "zombie meat", oatmeal manufactured from the nuclear pollution area and snacks with excessive additives. The AQSIQ’s concerns for the imported food safety are reasonable. Food safety is no small matter. At present, all walks of life concern on the implementation of the Measures. Some people concerned believe that Chinese investors in Europe enjoy a relaxed market entry policy, but the European investors in China cannot enjoy the same treatment, which is not conducive to the equality and mutual benefit of the investment trade of China and the EU. The EU Chamber of Commerce also believes that the implementation of the new "Measures" will hinder free trade. The introduction and implementation of each new provision generally requires a process of adaptation, and it is normal for different opinions. From the notice issued by the AQSIQ to extend the transition period can see the firm determination of the relevant departments for the protection of imported food safety, but also the relevant 9 departments actively adopt the different opinions from all walks of life and give the relevant countries / regions a certain time to adapt to our country new rules. The implementation of the new "Measures" is only a matter of time. Part II：Introduction on the Latest Food Safety Cases 4. The CFDA for the First Time Made Administrative Penalties of Off-limits Industry for the Person Responsible for the Issues Recently, according to the complaint, the FDA in Beijing Tongzhou District, conducted the inspection and test for the "premature" food of Beijing Wanquanju Food Industry and Trade Co., Ltd. located at Beijing Tongzhou District (that is, food production date marked later than the actual production date) and filed the case on the illegal act of marking false production date on food. The law enforcement officers found that the production date marked on some food was false date after inspecting the enterprise's production records, sales records and outbound delivery orders. During the law enforcement inspection, the inspectors also found the inventory of finished food in the factory's warehouse. The value of the above food is about RMB 9000, of which the Beijing Wanquanju Food Company has got the illegal income of more than RMB 2,000 through confirmation. The FDA in Beijing Tongzhou District made the final punishment decision that the Beijing Wanquanju food company because of marking the false production date, was revoked the food production license, at the same time, the company's legal representative is also be severely punished “off-limits industry within 5 years”. The law enforcement officers said that the enterprise that has been punished has seriously violated the relevant regulations of “forbid to produce or trade food, food 10 additives labeled with fake production date or shelf life or produce or trade food and food additives that have passed the shelf life” stipulated in the "Food Safety Law". Thus, the FDA in Beijing Tongzhou District in accordance with the relevant provisions made the decision to confiscate the illegal income, confiscate and destroy the food manufactured and operated illegally, and impose a fine; While taking into account the seriousness of the act, the FDA made the punishment decision to revoke the national industrial products production license of the enterprise involved. According to the provisions of the law, the legal representative and the persons who are directly in charge of the enterprise that has been revoked the license within 5 years from the date of the decision of the punishment shall not apply for food production and operation license, or shall be engaged in the food production and management work and serve as the food production and operation enterprise food safety management staff. 【HFG’s comments】The newly revised “Food Safety Law” in 2015, is known as the "most ever stringent” food safety law, which makes the rule for the first time that the administrative department has the right to impose the administrative penalty of "revoking the production licenses" according to the seriousness of the offenses of the parties. Moreover, the penalty is not based solely on the amount involved in malfeasance and the quantity of the goods of the penalized party. In this case, the enterprise has in a long term in a variety of products marked non-real production date illegally, which is a serious illegal act of label fraud and belongs to subjective intentional illegal act, with a vile nature, serious enough, so the infringer in this case was punished to "revoke the production licenses". Throughout the 2015 “Food Safety Law”, it focuses on the regulation for the production areas, that is, from the source to manage the food hygiene issues, such as the provisions of "it is prohibited to apply the extreme poisonous pesticides and highly toxic pesticides on vegetables, fruits, tea and other agricultural crops”. This case is also more typical punishment case after the promulgation of the new food safety law. 11 5. An Eventful Year of Nestle As one of the first multinational food companies to enter the Chinese market, since entering China in 1984, Nestle has now entered China for 30 years. Nestle has many brands which are familiar with Chinese consumers, such as Hsu Fu Chi, Wyeth, Yinlu, etc., which is one of the most successful multinational companies in China. Since the second half of 2017, Nestle has appeared a spate of scandals: 1. In mid-July 2017, six former employees of Nestle (China) Co., Ltd. were sentenced to have constituted the crime of violating the personal information of citizens by the Lanzhou Intermediate People's Court for being suspected of the illegal exploitation of medical channels and obtaining the sales resources of the hospital neonatal milk powder by improper means. 2. On July 18, two kinds of infant formula food for special medical purpose of Shanghai Nestle Products Service Co., Ltd. were piped off by the CFDA for the content of selenium is lower than the express values in the product label; 3. On July 25, the Shanghai Nestle Products Service Co., Ltd. was filed a case and investigated by the Pudong MSA due to the sales of substandard "Alfare" infant formula food, the relevant batch of products had been recalled off the shelf; 4. On July 31, the AQSIQ announced that the imported milk powder of 10.82 tons from Taiwan shared by the Nestle and its subordinate brand KLIM were refused entry for the use of nutritional supplements vitamin B2, B6, B12 beyond the scope. For the second and the third event, the relevant experts expressed that selenium is essential trace elements in the human body, so China has strict requirements for the content of selenium in the food. The selenium detection values of the "Alfare" products operated and sold by the Nestle is less 33.7% and 37.4% than the express values in the packaging label. After this incident, Nestle immediately informed the relevant dealers and retail stores to stop selling and recall the relevant batch of products. 12 In response to the information published by the AQSIQ on July 31(the fourth event), Nestle expressed the listed milk powder was only for the Chinese market in Taiwan, rather than for the Chinese mainland market. 【HFG’s comments】Ensuring the food safety has become a complex and intractable problem in the context of economic globalization. Especially for transnational food production enterprises which have many products variety, wide range of sales, jumbled dealers, especially in the transport and distribution links prone to have problems. Generally food standards vary from region to region. As a result, multinational food manufacturers usually produce and sell products that meet local food standards in different regions. However in the real life, it is not uncommon for the food to be sold in cross-circulation areas and cross-channel sales. HFG recommends that multinational food production plants can conduct the food quality monitoring by strengthening logistics management, while strengthening channel management in view of different sales areas to produce products that meet local food standards, while food production can use information platform, strengthen cooperation with third-party management agencies, in order to achieve open and transparent food information, which is also conducive to internal risk management. 6. CFDA Remind the Consumers to Notice the Food Safety of Moon Cake At present, it is just in time for the traditional Chinese Mid-Autumn Festival, 13 the sales of the traditional food "moon cake" is closely following the pace of the development of e-commerce business, entering into online sales era from offline sales. Whenever we open the WeChat (China's most popular social networking sites), we can see all kinds of advertising on moon cakes, or called "self-marketing", or "advertising for others". Most the advertisings are for the sales of "DIY moon cake", flaunting "pure handmade ", "free of additive", "real stuff" and other selling points. In fact, these "good looking" moon cakes are likely to not meet health standards. It is reported that, according to the requirements of the CFDA, the relevant departments were asked to conduct spot check and test for the food quality on the shopping malls, supermarkets and other areas of circulation, but the laws have no regulations for the home-made food,. According to the actual situation of the current spot check, the products are conducted spot check provided that they have QS food safety access mark. At present, many products sold in Wechat and online shops are hand-made, such online suppliers even do not get food production and management qualifications, which is the act of undocumented business, for such suppliers the administrative authorities cannot carry out spot check. Therefore, the quality of related products cannot be guaranteed. The relevant staff in FDA suggests that consumers have better not to buy self-made moon cakes through the online channels such as the Wechat unless you choose a vendor with formal food production and operation and operational qualifications and high credit rating. In addition, in order to protect you own legitimate rights and interests, it is recommended that consumers can require the vendors to issue valid bills, which will be easy for future rights protection in case of quality problems. 【HFG’s comments】Over the past 10 years, there have been three major changes in the license of food circulation area. The "Food Hygiene License" is the earliest, which was then abolished by the “2009 Food Safety Law” and replaced by the “Food Circulation License”. Recently, the "Food Circulation License" was abolished by the 2015 "Management Measures on Food Business license" and replaced by the "Food Business License". Many online stores are lazy to understand the new policy and handle the "Food Business License", coupled with the low threshold of online shop to open and the non-strict management review, consumers cannot distinguish whether the shop has a corresponding "Food Business License", resulting in many online shops do not register in the food hygiene supervision and management departments and industrial 14 and commercial administrative departments, the government's regulatory measures cannot be implemented in place. At present, due to the system constraints, many food inspection and test can only be handled for the formal units with the "Food Business License", for those who do not apply for "Food Business License", the regulators can only rely on society complaint to achieve the purpose of inspection and test. Therefore, in practice, please be careful when purchasing the self-made moon cakes through e-commerce before the promulgation of the effective management measures for e-commerce. 7. The Court Punished the Online Vendor to Compensate Tenfold for Food Violations Recently, Foshan Shunde People's Court made the judgment on the lawsuit filed by one consumer against the online vendor and its e-commerce platform on the problematic food purchased online, to sentence the vendor to return the purchase price of RMB 1470, and pay ten times the purchase price a total of RMB 14700 as compensation, but its sales platform Tmall is non-fault. In July 2016, the plaintiff Mr. Mo purchased wild oat tablets valued at RMB 1470 (RMB 490 +RMB 980) from the Tmall store called “Yelaixiang Health Care Products Store” opened by the defendant. After that, Mr. Mo found that the product ingredients include Mair-cona, but the product labels and brochures are not marked with proper edible amount and unsuitable crowds. As a result, Mr. Mo filed a lawsuit against the vendor and the operator of Tmall Zhejiang Tmall Network Co., Ltd. Mr. Mo believed that according to the announcement of the Ministry of Health, there are relevant provisions on the daily usage amount and unsuitable crowds of the new resource food Mair-cona, so which are needed to clearly be marked in the food labels and 15 instructions. At the same time, the food involved also violates the relevant requirements of "General Rules on the Nutrition Labeling of Pre-packaged Food". Tmall is liable for the inspection and supervision for the goods of the vendors settled in its platform. One of the reasons for the sales of the problematic food is that Tmall has failed to fulfill well the duty of inspecting and supervising the food. Mr. Mo pointed out that the vendor has violated relevant regulations, which was supported by the court. And as to whether the goods themselves meet the food safety standards, the defendant did not submit evidence, so the defendant should bear the negative consequences of failure on burden of proof. The court held that the Tmall has borne its duty of prior identity review for the vendor, complied with the relevant requirements of "Consumer Protection Law," and promptly provided the seller's real name, address and limited contact information, so defendant’s claim that Tmall should bear the responsibility was not supported by the court. 【HFG’s comments】According to the "Food Safety Law of People's Republic of China", the seller should pay tenfold compensation provided that "it still sells the food even though it knows that food does not meet the food safety standards", that is, the seller bears the liability for fault. The consumer, who asks for ten times of the purchasing price as the compensation after online shopping should bear the initial burden of proof and try to save the relevant food, purchase vouchers, and take legal means to safeguard their own interests if necessary. According to the legal practice, in the event that the internet trading platform provider cannot provide the real name, address and effective contact information of the seller or the service provider, the consumer can also request compensation from the trading platform; the platform provider shall be jointly and severally liable with the seller or the service provider provided that knows or should know the seller or the service provider uses its platform to infringe the lawful rights and interests of the consumers and fails to take the necessary measures. In this case, the Tmall on the seller involved has borne the duty of prior review, and can provide the seller's real name, address and effective contact information, so the plaintiff's claim for the Tmall to bear the responsibility was not supported by the court. 16 8. “RED BULL” Follows “RED POT”, It Is A War without Smoke Recently, the “Red Pot” packaging dispute between JDB and Wong Lo Kat finally came to an end after over five years. The two sides halved the match from the view of the final result. On August 16, 2017, the Supreme People's Court made the final decision that JDB and Wong Lo Kat to share the rights of red pot decoration. Since 2012, JDB and Guangzhou Pharmaceutical Group on behalf of Wong Lo Kat have been suing each other, which all claim the ownership of the "red pot" decoration. In 2014, the Guangdong Higher People's Court made the first instance judgment to sentence the Guangzhou Pharmaceutical Group to enjoy the "red pot" packaging and decoration rights and interests, and the JDB should not only stop the infringement immediately, but also pay for Guangzhou Pharmaceutical Group economic losses of RMB 150 million and the cost for rights protection of RMB 260000. Subsequently, JDB filed an appeal with the Supreme People's Court, but at the same time in 2015 launched the gold pot packaging. In a short period of 2 years, after JDB's tireless efforts, the gold pot products have occupied a place in the market. After the advent of JDB gold pot, many industry insiders believe that this is the best of a bad bunch for JDB, but the fact was that JDB was not so depressed, but very promising. The “Red Pot” dispute between JDB and Wong Lo Kat has just come to an end, the dispute on the "Use rights of Red Bull trademark" kicks off. Reignwood Group used the “Red Bull” trademark up to now after acquiring the authorization for “Red Bull” trademark 20 years ago from the Thailand Tiansi Medical and Healthcare Co., Ltd. (hereinafter referred to as “Thailand Tiansi”), and made the “Red Bull” trademark a super product with annual sales of RMB 20 billion and in the "dominant" status in the Chinese functional beverage market for a long term. However, with the expiration of trademark licensing, the trademark disputes between Thailand Tiansi and & 17 Reignwood Group are also escalating. Thailand Tiansi even pointed out that the Reignwood Group has constituted trademark infringement, unfair competition and other illegal acts. Thailand Tiansi said that in October 2016 the Red Bull trademark licensing agreement has expired and was not renewed. In July 2017, Thailand Tiansi filed a lawsuit against the relevant enterprises of Reignwood Group including packaging manufacturer ORG Packaging Co., Ltd, etc. Reignwood issued a statement that "Reignwood Group has never closed the door to cooperation." Due to the impact of the incident, the Chinese Red Bull has reduced its sales target in 2017 by RMB 2 billion compared to 2016. 【HFG’s comments】Trademark authorization is a legal way to obtain the right to use the trademark, it is very popular for the middle and small-sized enterprises which have insufficient fund in venture stage to take advantage of famous brands to enhance their product level. Trademark licensing, although there are various benefits, by which the enterprises can get the right to use a well-known brand in a short period of time, has great risks. Once the trademark owner takes back the authorization, trademark user shall be in vain for so many years, while there may be more interest disputes. Such trademark authorization dispute case is not uncommon, as a warning, "Wong Lo Kat" trademark licensing dispute is a typical case, in the end the parties are sentenced to share "Wong Lo Kat" trademark. It is no exaggeration to say that the trademark is one of the most important identifiers in the field of food circulation, which concerns the lifeblood and sales amount of the enterprises. 9. “Daigou”Also Has Forbidden Zone, “Daigou”Contact Lenses in Wechat Moments Was Charged with Criminal Offence                                                                                           18    According to the message of the Nanchang West Lake District People's Procuratorate, the online vendor SHENG Moumou who without the approval of the drug regulatory department sold contact lenses and cosmetic contact lenses in Wechat was accused of illegal operation and hereby initiated a public prosecution by the Procuratorate. It is introduced that from 2015 to July 2016, although no Class C Medical Device Business License was obtained, the defendant SHENG Moumou purchased the contact lenses and cosmetic contact lenses from the "overseas purchasing supermarket" on Taobao and then through WeChat, microblog and other social software to release commodity information for the purpose of sale, totaling illegal profit of around RMB 10,000. It is understood that the cosmetic contact lenses are medical device products, direct contacting with the cornea, which have a higher risk and cannot be sold until obtain the medical device business license and the approval of relevant departments. The prosecutor gives a kind remind that "wechat business" must be through legal channels, learn more about the law knowledge, and not muddle over laws and regulations. Daigou goes wild at recent years and also more and more people are punished for Daigou. We can find after the analysis of such cases that "overseas purchasing" sellers may be involved in the charges such as the crime of smuggling ordinary goods, illegal business crime and the crime of selling fake drugs. In principle, the buyer for the purpose of self-use generally does not involve criminal offenses. As the Daigou is very popular, the sudden appearance of “punishment for Daigou” indicates that the public lack the legal knowledge of Daigou. 【HFG’s comments】 According to the criminal law of China, either illegal turnover of more than RMB 50,000, or illegal income of more than RMB 10,000 need to be filed a case by the public security, and be prosecuted by the procuratorate. In this case, the person who conducts the “Daigou”has set foot in the "crime" area for lacking of the knowledge of the law. Therefore, “Daigou” has certain risks, such as illegal business crime, crime of selling fake drugs, but also faces the supervision problem of whether pay the tax reasonably, such as the crime of smuggling ordinary goods. According to customs regulations, the customs for the personal items of entry and exit takes the "own use, reasonable quantity" as the basic principle in addition to those products limited or prohibited to be imported by the state. The personal use items valued at more than RMB 5000, or the goods for the purpose of obtaining profits by reselling need to pay tariffs. Strictly speaking, if the person who conducts the online“Daigou”deliberately evades the customs inspection, or passes the customs inspection in the excuse of self-use to cover up its real purpose of sales, then he shall constitute the act of evading 19 tariffs, who is also possible to be convicted if the amount is too large (tax evasion of more than RMB 50,000). Shanghai HFG Law Firm September 30, 2017 20 ABOUT HFG HFG since found in 2003，as a firm uniquely integrated and co-managed by multi-national professionals, persists in providing clients with service of the highest standard and quality all the time. By profound understanding for the commercial requirements of clients from all walks of life all over the world, we do our best to obtain the largest business interests for clients. At the moment, HFG consists of three entities: HFG Law Firm, HFG Intellectual Property Consulting Co. Ltd and HFG Intellectual Property Agency Co. Ltd. and sets up two offices in Beijing and Shanghai. HFG collects an abundant and diversified knowledge base and multi-lingual communication capability through a long-term practical experience, and does all kinds of intellectual property business for clients in administrative and judicial authorities at various levels at provinces, municipalities directly under the central government and autonomous regions of the country. HFG integrates the commercial and corporate law services of IP contentious and non-contentious practices, providing a one stop solution to companies whose intangible assets out value the tangibles. Service scope of HFG includes IT communication, petrochemistry, wine such as grape wine, fashion cosmetics, retail and e-commerce trade, food and pharmaceuticals standard, the acquirement of certificate and the earnings of patent technology etc. Cases completed by HFG are evaluated as the top ten representative criminal cases and top five classic cases by Ministry of Public Security for several continuous years, in addition, the top ten best cases claimed by high quality brand protection committee of CAEFI and the classical lawsuit in that every year by many medium and high courts at many main provinces. HFG has been awarded as the best IP service provider by many international clients for several continuous years. HFG is recommended by Legal 500 as the No.1 in terms of IP business in Shanghai since 2010and by MIP ranked in Chambers and Partners and WRT 1000. 21 Please feel comfort to contact us if you have any advice or opinions for IP news of food industry in this season. 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