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Cablegate: U.S. Coordinator for International Intellectual

VZCZCXRO3702
OO RUEHCN RUEHGH
DE RUEHBJ #2463/01 1030813
ZNR UUUUU ZZH
O 130813Z APR 07
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6821
INFO RUEHCN/AMCONSUL CHENGDU 8169
RUEHGZ/AMCONSUL GUANGZHOU 2767
RUEHGH/AMCONSUL SHANGHAI 7366
RUEHSH/AMCONSUL SHENYANG 7849
RUEHHK/AMCONSUL HONG KONG 9209
RUEHIN/AIT TAIPEI 6400
RUEHKO/AMEMBASSY TOKYO 1332
RUEHUL/AMEMBASSY SEOUL 0075
RUEHMO/AMEMBASSY MOSCOW 8658
RUEHGV/USMISSION GENEVA 1782
RUEAHLC/DHS WASHDC
RUCPDOC/USDOC WASHDC
RUEAWJA/DEPT OF JUSTICE WASHDC
RHMCSUU/FBI WASHINGTON DC

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.

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