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.