U.S. COORDINATOR FOR INTERNATIONAL INTELLECTUAL

UNCLAS SECTION 01 OF 02 BEIJING 002463 SIPDIS State for EAP/CM - JYamomoto and EB/IPE - EFelsing USTR for China Office - AWinter; IPR Office - RBae; and OCG - SMcCoy, ACelico Commerce for National Coordinator for IPR Enforcement - CIsrael Commerce for MAC 3204/LRigoli, ESzymanski Commerce for MAC 3043/McQueen LOC/Copyright Office - MPoor USPTO for Int'l Affairs - LBoland, EWu DOJ for CCIPS - Asharrin DOJ for SChembtob FTC for Blumenthal FBI for LBryant TDA for SChow DHS/ICE for IPR Center - DFaulconer DHS/CBP for IPR Rights Branch - PPizzeck SENSITIVE SIPDIS E.O. 12958: N/A TAGS: KIPR ETRD ECON WTRO CH SUBJECT: U.S. COORDINATOR FOR INTERNATIONAL INTELLECTUAL PROPERTY ENFORCEMENT CHRIS ISRAEL AT CHINA CUSTOMS: MOC AT SED? ¶1. (U) United States Coordinator for International Intellectual Property Enforcement Chris Israel met with China General Administration of Customs officials on March 28 to discuss intellectual property rights (IPR) enforcement. China Customs expressed their interest in moving forward quickly with the signing of a bilateral memorandum of cooperation (MOC) with their Department of Homeland Security (DHS) counterparts, and stated the desire of China Customs to conclude such an agreement as early as the Strategic Economic Dialogue (SED) meeting in May. ¶2. (U) China Customs Deputy Director General of the Department of Policy and Legal Affairs, Wang Yongshui, repeatedly expressed his interest in signing an MOC quickly, and focused in particular on the sharing of statistics that such an agreement would enable. Wang suggested establishing a working group by mid-April to meet either in Washington or in Beijing to discuss how to move forward. Wang added that he is disappointed in the lack of progress under the China-U.S. Agreement Regarding Mutual Assistance in Customs Matters, and suggested that the MOC should instead be carried out under the Joint Commission on Commerce and Trade (JCCT),which he hoped would be a more productive mechanism. ¶3. (U) China Customs IPR Division Director Li Qunying, who is responsible for working with United States Customs and Border Protection (CBP) to draft the new MOC, agreed that a face-to-face drafting session is necessary to conclude an agreement. Li also expressed frustration that little has been accomplished on the MOC since the December 2006 meeting of the JCCT. ¶4. (U) Israel agreed that entering into an MOC with China Customs is a priority for the United States, and recommended that Li forward his written recommendations on how to move forward to his contacts at DHS. ¶5. (SBU) Comment: In addition to the proposed MOC on customs cooperation, United States cooperation with China on customs matters includes a training program at the Shanghai Customs College funded by the U.S. Trade and Development Agency. Following USTR's April 9 announcement to bring two WTO cases against China and the April 10 request for consultations, the extent of future bilateral cooperation on IPR and related issues remains uncertain. Notably, the WTO IPR case includes a customs-related complaint involving the disposal of counterfeit goods by China Customs. Washington, DC agencies should note that BEIJING 00002463 002 OF 002 China Customs did enact a rule on April 4, 2007 that addresses the disposal of infringing goods, which appears to be the subject of Article II of the WTO complaint filed less than one week later. (Full text of the new Customs rule is available online at http://www.customs.gov.cn/ YWStaticPage/433/667a7af1.htm.) Post has not yet received an indication from China Customs as to whether they wish to continue to pursue the MOC signing in light of the WTO filings, or whether they believe their last-minute rule addressed USTR's concerns. End Comment. -------------- Meeting Participants -------------- ¶6. U.S. Participants: U.S. International Intellectual Property Enforcement Coordinator Chris Israel Embassy DHS/ICE Assistant Attache Diana Tsang Embassy Economic Affairs Second Secretary Geoff Siebengartner (notetaker) Interpreter ¶7. Chinese Participants: GAC Department of Policy and Legal Affairs Deputy Director General Mr. Wang Yongshui GAC Department of Policy and Legal Affairs Intellectual Property Division Director Mr. Li Qunying GAC Department of Policy and Legal Affairs Intellectual Property Division Director Program Manager Ms. Lin Yuxin ¶8. Chris Israel has cleared this report.