Who Owns the Mould? Moving It Between Chinese Factories

Mould ownership: payment, possession and permission to transfer

Check whether your tooling payment purchases a dedicated mould, contributes towards development or pays for access to tooling. Have ownership assessed under applicable law and the full agreement, including the delivery arrangements, rather than treating the invoice description as conclusive.

Document rights in the physical mould separately from intellectual property and permission to use, modify or share drawings and manufacturing data. Establish who physically holds the tool and who can authorise collection; verify whether the contracting supplier and storage factory are the same legal entity.

Use these checks when planning a supplier change. For the earlier purchasing decision, read tooling cost and ownership.

The agreement checklist below is practical preparation, not a list of mandatory Chinese contract terms. Ask a Chinese lawyer to assess enforceability, the contracting parties, governing law, dispute resolution and any claimed right to retain the mould.

What should a mould ownership agreement contain?

Agree the terms before paying for tooling where possible. For an existing mould, assemble quotations, orders, payment records and correspondence, then ask the parties to document any gaps. Have conflicting earlier terms reviewed before relying on a supplementary agreement.

Identify the buyer, seller, actual toolmaker and storage factory by their legal names. Where different businesses control manufacture and release, ask your lawyer how their commitments should be documented.

Before announcing a move, confirm that the mould is worth transferring

Ask the receiving factory to review the mould specifications against its machine documentation and available records. Include mould dimensions and weight, mounting, injection requirements, ejection, cooling connections and hot-runner controls where fitted.

Commission an inspection appropriate to the tool. Ask the inspector to assess identification, completeness, corrosion, wear, cavity damage, cooling circuits and moving components. Where feasible, arrange a witnessed trial before collection and retain labelled parts and processing settings.

Include inspection before shipment as well as on arrival. Request evidence of the working surfaces and trial results rather than accepting photographs of the closed tool as the sole condition record.

Compare the full transfer proposal with repair or replacement: release, inspection, dismantling, packing, transport, adaptations, trials and downtime. Ask for evidence supporting any remaining-life estimate and assess the shot-count records alongside the inspection findings.

For ongoing care and end-of-life decisions, use tooling maintenance and retirement. For assessing a replacement toolmaker, see choosing a China mould supplier.

How to move a mould between Chinese factories

Confirm authority to release. Reconcile the asset list and account position with the contracting supplier and the business holding the mould. Obtain written collection approval, the collection address and the name of the person authorised to hand it over.

Secure the transfer package. Obtain the agreed drawings, 3D data, steel certificates, maintenance and shot-count records, approved samples and current processing information. Record unavailable items explicitly and ask the receiving factory to assess the consequences.

Record condition and agree packing with the toolmaker and carrier. Have them specify preservation, any draining and drying, protection of exposed surfaces, restraint of moving parts, lifting arrangements and suitable packing. Photograph the contents and record packed weight and dimensions.

Document the handover. Match tool identifiers, accessories and condition against the inventory. Keep the signed collection record, transport documents and agreed allocation of responsibility for loss or damage.

Check customs status before collection. Chinese Customs guidance requires customs procedures for transfers of bonded goods and restricts unauthorised delivery or movement of goods under customs supervision. Ask the responsible broker or supervising customs office whether the mould or either location brings the transfer within those rules.

Agree how open orders, remaining materials, finished stock and delivery commitments will be handled while the receiving factory prepares its trial.

What changes if the mould leaves China?

Before booking overseas transport, ask the appointed brokers to confirm the exporter and importer, required declarations, supporting documents, classification, valuation and any restrictions or permissions applicable to the actual route and customs procedure.

Prepare an accurate description of the tooling, its identifiers, condition, original purchase evidence and reason for movement. Where there is no sale for export, ask which valuation method and evidence apply. Do not substitute a token value merely because the shipment involves no new payment.

Distinguish importing the physical mould from valuing products manufactured with it. Under the HMRC tooling rules described below, assess separately invoiced tooling used in China when valuing the resulting UK imports. Give the customs agent the tooling payment and previous valuation records.

EU example: the European Commission identifies the applicable tariff, goods value and origin as factors in calculating duty. US example: CBP guidance includes qualifying tools, dies and moulds supplied by the buyer free or at reduced cost for production and sale for US export within production assists. Ask a broker to apply the destination rules to your arrangement.

The official customs sources are listed below. For the narrower invoicing and valuation issue, read separate tooling fees and customs value.

UK example: customs value and import VAT

Under HMRC's Method 1 guidance, include the appropriately apportioned value of buyer-supplied tools and moulds provided free or at reduced cost for producing imported goods, where not already included. Separate invoicing does not itself exclude a tooling charge.

If there is no sale for export, HMRC says Method 1 cannot be used: try Method 2, then follow the prescribed sequence if it is unavailable. Ask the customs agent to assess the actual transaction and evidence. For Northern Ireland, HMRC directs importers to Union Customs Code valuation rules.

For import VAT, start with customs value and add applicable import duties and relevant incidental expenses not already included, including transport and insurance to the first UK destination and transport-related costs to a further UK destination known at importation. This does not establish a duty or VAT rate for the mould.

Retrial at the new factory: arrival is not production approval

On arrival, inspect and reconcile the shipment before installation. Compare condition with the departure evidence and document missing items or damage promptly under the transport arrangements.

Agree a trial plan using the specified material and approved product requirements. Check dimensions, appearance, function and assembly as applicable. Record machine settings, samples and results so that approval refers to an identifiable trial.

Require acceptance evidence from the receiving factory rather than relying solely on the old factory's trial. Ask the receiving factory to identify any equipment or process adjustments it proposes, and agree who approves and pays for work before the tool is altered.

Authorise production after the agreed acceptance evidence is available. For discussing the manufacturing and transfer scope, see China injection moulding services.

If the factory refuses release, or you need help organising the move

Ask for the refusal and its basis in writing: disputed ownership, unpaid invoices, storage charges, missing authority or another stated reason. Preserve the contract, payment evidence, tool identifiers and correspondence. Obtain a documented handover arrangement before relying on any proposed payment to resolve the dispute.

Have a Chinese lawyer assess the documents, any claimed retention right and practical enforcement options. China's Civil Code provides for retention or refusal of delivery of work products in specified unpaid work-contract circumstances, subject to the parties' agreement; ask whether those provisions apply to this mould and dispute.

If discussing assistance with Cambridge China Bridge, provide the ownership documents, tool location, condition evidence, receiving-factory details and proposed destination. Confirm the available services and responsibility for technical inspection, legal advice, customs work and retrial before agreeing the scope.

Sources

The official sources below support the customs and limited legal explanations. The CBP publication is also available through the US Government Publishing Office archive. The agreement, inspection and transfer checklists are practical recommendations, not a verified list of Chinese legal requirements.