W&B Law Offices (“W&B”) once again partnered with JETRO Shanghai (“JETRO”) to impart legal knowledge on IP issues that arise in the daily operations of Chinese employees of Japanese enterprises by initiating a lecture series on these topics. W&B commenced preparation for this series way back in July in order to mobilize its best internal resources and allow its partners specializing in IP-related matters to present lectures. The seminar was delivered in four sessions. On the morning of September 22^nd, 2016, Partner Wu Yueqin inaugurated the seminar in the multi-purpose room on the 35^th floor of the Shanghai World Trade Center with a lecture entitled “’Internet Plus’ Legal Issues Surrounding Cross-Border E-Commerce”.

Ms. Wu began her lecture with a summary of cross-border e-commerce. She pointed out relevant issues such as the complex process of traditional cross-border online shopping, loopholes in the regulatory regime and the legal risks of Custom clearance through gray and smuggling approaches. Ms. Wu brought all of these issues together to highlight the advantages of direct mail and protective tariffs applicable to the Customs clearance of cross-border e-commerce. Ms. Wu then briefed the audience on the basic concepts and characteristics of cross-border e-commerce, the content of Customs Declaration No.56 on the transparency of cross-border online shopping, and the supply chains for Chinese cross-border import e-commerce.

In the second part of the lecture entitled “Cross-Border E-Commerce Policies, Ms. Wu introduced the main content of the four major announcements by the General Administration of Customs including the February 2014 Bulletin No.12 (Notice on the Addition of a Customs Supervision Code) and the April 2016 Bulletin No.26 (“Notice on Regulatory Issues Relating to the Cross-Border E-Commerce Retail, Import and Export of Goods”). She discussed the impact of these bulletins on the operation of cross-border e-commerce and, by using the example of a branded milk powder distributed by an e-commerce vendor, demonstrated the difference between the commodity tax and administrative duties for imported goods. To help the audience understand specific topics such as examination and quarantine, Chinese labeling practices, product quality and consumer rights and interests, Ms. Wu interpreted four actual cases from a legal perspective in order to consolidate these seemingly fragmented and abstract concepts.

In the last section, covering “Issues and Solutions for IP Infringement in Cross-Border E-Commerce Transactions” and “Other Issues Relating to Cross-Border E-Commerce and Solutions”, Ms. Wu analyzed the risks of IP infringement faced by cross-border e-commerce vendors, the parallel import of trademarks and patents, and actual cases of offers for sale and mitigation of legal risks. She also shared her vision on future trends affecting ten major cross-border e-commerce regulatory issues.

An increasingly mature cross-border e-commerce system, widely recognized as a new channel in expanding foreign trade markets, has significant implications for expanding the share of international markets, transforming the development model for foreign trade, and reshaping the rules of international trade.

For the past two decades, W&B has devoted itself to remaining on the cutting edge of various new legal services (mainly IP-related issues). This focus provides us with the expertise necessary to stay abreast of the advance of our clients’ businesses by providing legal services for cross-border e-commerce operations and satisfying our clients’ developmental needs.

It is worth noting that this lecture series marks the third partnership between W&B and JETRO in the area of professional legal training. The first cooperation was directed at junior employees in Japanese companies. It covered basic know-how on operational issues, countermeasures against problems arising from patent and trademark applications and trade secrets, and solutions to counterfeiting problems. The second partnership in 2015 was directed at mid-level Chinese employees in Japanese companies and was presented in the form of lectures. This cooperation instructed its participants on issues relating to IP rights and counterfeiting. Our latest cooperation centers on heated IPR topics that are of vital relevance to enterprises doing business in China, including “Case Studies on the Practice of Anti-Unfair Competition Law”, “Design and Risk Prevention in Corporate Reward Systems for Service Inventions” and “Corporate Approaches to the Establishment, Maintenance and Exercise of Trademark Rights from a Trademark Enforcement Perspective”. Our 2016 lecture series is designed to provide a four-month feast of legal knowledge for representatives of Japanese companies.