Today, I have implemented a 25%ย Tariff on Imports from Mexico and Canada (10% on Canadian Energy), and a 10% additional Tariff on China. This was done through the International Emergency Economic Powers Act (IEEPA) because of the major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl. We need to protect Americans, and it is my duty as President to ensure the safety of all. I made a promise on my Campaign to stop the flood of illegal aliens and drugs from pouring across our Borders, and Americans overwhelmingly voted in favor of it.

President Trump increases tariffs on Canada, Mexico, and China

Last updated: February 6, 2025 at 17:16 pm

UPDATE: China tariffs of 10% have been imposed, however, Canada and Mexico tariffs have been paused until March 4, 2025. Links have been supplemented, but the text of this blog post will remain unchanged. Look for future updates in new posts/articles on the site.

The following post by President Trump increasing tariffs on Canada, China, and Mexcio speaks for itself (source):

Today, I have implemented a 25%ย Tariff on Imports from Mexico and Canada (10% on Canadian Energy), and a 10% additional Tariff on China. This was done through the International Emergency Economic Powers Act (IEEPA) because of the major threat of illegal aliens and deadly drugs killing our Citizens, including fentanyl. We need to protect Americans, and it is my duty as President to ensure the safety of all. I made a promise on my Campaign to stop the flood of illegal aliens and drugs from pouring across our Borders, and Americans overwhelmingly voted in favor of it.

Everyone should have expected this. It has been telegraphed by Trump for about 10 years, when he began to make tariffs a signature proposal in his first run for the White House. His first term in office saw an unprecedented shift in the use of tariffs, using them on a broad scale, for the first time with China. As he said, if COVID didn’t happen, he would have done more.

With that in mind, before Trump’s second inauguration, we wrote on article on the potential Trump tariffs and some strategies.

Last week, we commented on the America Firstย Trump’s America First Trade Policy Executive Order which appeared to give time until at least April 1 for tariffs to take effect. Then, this week we got a firmer signal that that he still planned to impose additional tariffs on February 1.

What happens next for the Trump Tariffs on China, Canada, and Mexico?

The text of all the Executive Orders do not yet appear to be on Whitehouse.gov (but a fact sheet summary is), but linked below are reliable texts:

Each order applies the additional tariffs after “on or after 12:01 a.m. eastern time on February 4, 2025, except that goods entered for consumption, or withdrawn from warehouse for consumption, after such time that were loaded onto a vessel at the port of loading or in transit on the final mode of transport prior to entry into the United States before 12:01 a.m. eastern time on February 1, 2025, shall not be subject to such additional duty, only if the importer certifies to U.S. Customs and Border Protection within the Department of Homeland Security as specified in the Federal Register notice.”

Stay Informed and Prepared:

The landscape of international trade is shifting rapidly with the impending Trump tariffs on China, Canada, and Mexico. Don’t be caught off guard.

Contact Great Lakes Customs for advice and assistance. If you have questions or need help navigating these changes, we’re here to support you.

 

Back-to-back Detroit airport money seizures are listed in this May 27 Notice of Seizure and Intent to Forfeit published by CBP

Detroit Customs Cash Forfeiture Notices: January 24, 2025

Every Friday, the U.S. Customs and Border Protection (CBP) publishes a notice of intention to forfeit any property that has been seized recently on forfeiture.gov. In this week’s notice, Detroit CBP has announced the intention to forfeit four different currency seizures that occurred on December 30 and January 1. Below, I have summarized the details of these four cases, which collectively amount to $80,637.00. Each seizure was due to a FinCen105/cash reporting violation, commonly referred to as a “failure to report.”
The cash seized in these cases will be forfeited if a claim (or maybe a petition) has been filed by March 25, 2025.
  1. Case 2025380700022201-0001-0000:
    • Seized on: 12/30/2024
    • Port: Detroit Airport
    • Currency Retained: 309 EA
    • Value: $24,677.00
    • Violation: 31 USC 5317(c)(2), 31 USC 5316(a)(1)(A)
  2. Case 2025380700022301-0001-0000:
    • Seized on: 12/30/2024
    • Port: Detroit Airport
    • Currency Retained: 267 EA
    • Value: $21,400.00
    • Violation: 31 USC 5317(c)(2), 31 USC 5316(a)(1)(A)
  3. Case 2025380700022601-0001-0000:
    • Seized on: 01/01/2025
    • Port: Detroit Airport
    • Currency Retained: 232 EA
    • Value: $18,825.00
    • Violation: 31 USC 5317(c)(2), 31 USC 5316(a)(1)(A)
  4. Case 2025380700022901-0001-0000:
    • Seized on: 01/01/2025
    • Port: Detroit Airport
    • Currency Retained: 176 EA
    • Value: $15,735.00
    • Violation: 31 USC 5317(c)(2), 31 USC 5316(a)(1)(A)

Is Detroit CBP forfeiting your cash?

If CBP in Detroit has seized and is forfeiting your cash, you have rights to get your money back. At Great Lakes Customs Law, we monitor these notices weekly to assist our clients who have been forced to abandon their cash. Read our trustedย customs money seizure legal guide and contact us for a free currency seizure consultation by clicking the contact buttons on this page.

Trump’s “America First Trade Policy” Executive Order

President Trump has signed an executive order entitled “America First Trade Policy,” which requires various departments and the USTR to present him with a report on trade actions by April 1, 2025 (and April 30, 2025).

What is in Trump’s America First Trade Policy Executive Order?

The order makes mention of the following priorities for the Trump administration relative to customs, trade, and tariff issues:

  • Investigate and address the causes of large trade deficits, unfair trade practices, and economic security risks.
  • Explore the feasibility of establishing an External Revenue Service to collect tariffs and duties.
  • Assess and counteract currency manipulation by trading partners.
  • Review the United States-Mexico-Canada Agreement (USMCA) and its impact on American workers and businesses.
  • Review and address trade practices and agreements with China, including intellectual property rights and tariffs.
  • Conduct a review of the U.S. industrial and manufacturing base to address national security threats.
  • Assess and improve export control systems to prevent the transfer of strategic goods to adversaries.
  • Address the impact of foreign government subsidies on U.S. federal procurement programs.
  • Assess and recommend measures to address unlawful migration and fentanyl flows from Canada, Mexico, and China.

Interestingly, the order directs the USTR to “consider potential additional tariff modifications as needed under section 2411 of title 19, United States Code [19 USC 2411] โ€” particularly with respect to industrial supply chains and circumvention through third countries”.

What Does the Executive Order Tell us About Future Tariffs?

The take-away from this executive order should be the deadline of April 1 (and 30), 2025, as a potential starting point for aggressive tariff actions and/or threats as a means of increased leverage. Further, the order appears to suggest that additional duties on other countries (to which Chinese industry has moved manufacturing as a means of circumvention of the existing Section 301 duties) is on the table. In other words, countries which have benefited most of the shift from China, such as Vietnam.

Need help navigating the Trump Tariffs?

For 15 years, Great Lakes Customs Law has been a law firm for importers. We have helped hundreds of clients save money by avoiding and lowering tariffs. Contact us at our Michigan office at 734-855-4999 or call our Chicago office at 773-920-1840.

Note: This information is only current as of the date of publication.

$44,000 Smuggled Cash Seized by CBP at San Ysidro US Mexico Border

CBP San Ysidro discovers $44k in cash hidden in food bag

CBP in San Ysidro, California, seized a bundle of cash — literally – from a woman heading to Mexico. She was smuggling more than $44k in a plastic bag full of food. Here’s an excerpt from the tale (link):

Customs and Border Protection (CBP) officers at the San Ysidro Port of Entry intercepted the transportation of $44,148 in unreported currency hidden within a vehicle during an outbound examination last Wednesday.

On January 8, at approximately 12:30 p.m., CBP officers conducting outbound operations at the San Ysidro Port of Entry encountered a 27-year-old woman driving a 2024 sedan traveling southbound into Mexico from the United States. CBP officers referred the driver and the vehicle for a secondary examination.

CBP San Ysidro Seized This Bundle of $44000 in Cash from a Person going to Mexico
CBP officers discover more than $44k in unreported currency while conducting southbound inspections at the San Ysidro Port of Entry.

In secondary, a CBP K-9 unit screened the vehicle and alerted officers to examine a white plastic bag containing food items. Upon further inspection of the white plastic bag, officers discovered a brown package that contained a total of $44,148 in unreported currency.

I’ve helped numerous people who have had money seized by CBP in San Ysidro. I’ve heard a variety of reasons for the reason my clients were carrying the money, including purchasing or selling real estate in Mexico, traveling for cosmetic or surgical procedures, or buy or selling vehicles. Among other reasons, those are the most prominent that spring to mind. None of those stories made the “news” like this one did. So what is different?

This case involves bulk cash smuggling — the intention hiding of cash that is coupled with a failure to report the cash. If the cash was reported, then it wouldn’t matter it was smuggled. Imagine the woman saying:

“Hey officer, just so you know, I’ve got $44,000 in this white bag with my Chinese take out order, and here is my FinCen 105 form.”

That would be what CBP would need to hear not seize the cash. But she didn’t, apparently, and that makes all the difference. CBP’s logic is: If the transportation of the cash was innocent, then why hide it? Very likely, this person was up to no-good with the cash and now has had it seized.

CBP then concludes the story with:

It is not a crime to carry more than $10,000, but it is a federal offense not to declare currency or monetary instruments totaling $10,000 or more to a CBP officer upon entry or exit from the U.S. or to conceal it with intent to evade reporting requirements. Failure to declare may result in temporary or permanent seizure of the currency and/or arrest. An individual may petition for the return of currency seized by CBP officers, but the petitioner must prove that the source and intended use of the currency was legitimate.

Has CBP in San Ysidro seized your cash?

You need a customs lawyer if CBP in San Ysidro seized your cash. Read our trusted customs money seizure legal guideย (or watch the videos) and can contact us for a free money seizure consultation by clicking the contact buttons on this page.

Chart of Cash Seizures from CBP Data Portal

Detroit CBP Confiscated $459,000 from 25 Travelers in October

In October, at the start of CBP’s fiscal year, Detroit customs officers confiscated a total of $42,000 from two different travelers (or sets of travelers), as detailed below:

But is that all CBP seized in October 2024? Hardly. At CBP’s Data Portal, you can pull stats for currency seizures and if you look at that data, CBP confiscated almost a half-million dollars in October 2024. Here is screenshot:

Chart of Cash Seizures from CBP Data Portal

That seems like a lot. Seriously, a lot. The filter “inbound/outbound” would lead me to believe this is truly all for currency reporting violations by international travelers. CBP ends up conducting seizure and forfeiture proceedings of money for other government and state agencies, but this would appear to not include those numbers. If true, wow.

In October, there were 25 seizure events. That means, on average, CBP seized $18,360 from the travelers.

Has Detroit CBP confiscated your cash?

You need a customs lawyer if Detroit CBP confiscated cash from you. Read our trusted customs money seizure legal guideย (or watch the videos) and can contact us for a free money seizure consultation by clicking the contact buttons on this page.

Fake Cartier Jewelery Seized by CBP

Penalties for Christmas

CBP officers at the port of Louisville, Kentucky, inspected some packages arriving from China. The packages were destined for Arizona, Virginia, Florida, and New York. Here’s the details from the CBP story:

LOUISVILLE, Kyโ€”ย In two days, last week, U.S. Customs and Border Protection (CBP) officers in Louisville seized four shipments containing 962 pieces of counterfeit designer watches, bracelets, necklaces, and earrings. The items were deemed to be counterfeit by CBPโ€™sย Centers of Excellence and Expertise, the agencyโ€™s trade experts, and if genuine, would have had a combined Manufacturerโ€™s Suggested Retail Price (MSRP) over $18 million.

The shipments arrived from Hong Kong and China on December 17 and 18. When CBP officers examined the shipments to determine the admissibility of the goods, they found 459 bracelets displaying the logos of Cartier, Chanel, Fendi, Hermes, Louis Vuitton, and Van Cleef and Arpels, 43 pairs of earrings with Van Cleef and Arpels and Cartier logos, 20 necklaces with Van Cleef and Arpels logos, and 440 watches bearing the Rolex logo. The items were seized for infringing on the designerโ€™s protected trademarks. The shipment was heading to residences in Arizona, Virginia, Florida and New York and had the items been real, the MSRP for these products would have been $18.81 million.

The packages were filled with loads of counterfeit luxury goods which, if genuine, would be worth $18 million. The goods included earrings, necklaces, bracelets & watches seized by Louisville CBP.

Counterfeit seizures very often lead to penalties, hence, the title of the blog post, “Penalties for Christmas”. Order counterfeit goods, get penalty from CBP. Easy as that.

What makes counterfeit goods illegal to import?

Counterfeit goods are illegal to import into the United States as a violation of law 19 USC 1526. Because they are illegal, they will be seized. Because they are illegal, CBP has authority to issue a penalty (for a first-time offense) up to the Manufacturer’s Suggested Retail Price of the goods as if they were genuine. So in this case, CBP would have authority to issue up to $18 million in penalties.

If you find yourself with a notice of seizure letter for counterfeit goods you should read our CBP Seizure for Online Counterfeit Purchases FAQ.

Why do people import counterfeit goods?

In our experience people import counterfeit goods for two primary reasons:

  1. People get carried away with online shopping and buy things for themselves and for family for personal use
  2. People open up online and brick-and-mortar boutiques where they sell “inspired designs” (ahem, counterfeit).

Whatever the reason, for some reason, people are surprised to get a sheet of paper in the mail that says they owe a ton of money for something that they paid only a few dollars for. Worse yet, they’re stuck dealing with the penalty.

How does CBP collect the penalty?

CBP collects the penalty in a variety of ways. CBP has the power to intercept tax refunds and credits through the Treasury Offset Program and/or by bringing a civil action in Federal district court for the penalty amount.

What if I get a penalty for counterfeits from CBP?

If you get a penalty for counterfeits from CBP, you should definitely file a petition for mitigation of the penalty.ย You could get a substantial reduction in the penalty amount through mitigation offered by the Fines, Penalties and Forfeitures Office. We have a lot of experience of getting great results for clients on their CBP penalty cases, including substantial reductions and even some cancellations. You can seeย some history of our success is HERE.

Of course, results will vary from case to case, and no result could be guaranteed. Customs maintains a list of mitigating factors and aggravating factors that it looks for, and which should part of the argument and analysis of any petition that is filed for them; without a careful and thoughtful analysis of those factors that customs looks for, you may end up pay more than necessary.

If you have had your merchandise seized or have received a notice of penalty from customs, call our office at (734) 855-4999 to speak to a customs lawyer about the possibility of getting your penalty reduced, or e-mail us through ourย contact page. We are able to assist petitions and in penalty casesย by customs

President Trump signs proclamation imposing tariffs on imported steel and aluminum

Trump’s Tariffs: Predictions and Strategy

Heads up to importers and those who only follow the blog feed, please check out the page we recently added called Trump Tariff Strategy: When and How Duties Can Be Imposed.

There, I discuss what we can predict about Trump’s new tariff plans going forward (spoiler: we can predict there will be tariffs, but that’s about it), how long the tariffs will last (spoiler: it’s going to feel permanent even if it’s not), and an overview of the many different legal mechanisms he can use to impose tariffs (spoiler: we might not onlt be talking about “Section 301” and “Section 232” tariffs, but also “Section 122 Tariffs”, “Section 201 Tariffs”, “Section 338 Tariffs”, ‘section 1702 Tariffs”, and “Section 404 Tariffs”.

And, we also talk about some business decisions, classification, and valuation issues that could take some of the bite of out of the tariffs.

Need help navigating the Trump Tariffs?

Great Lakes Customs Law was established in 2010 as a law firm for importers. We have helped hundreds of clients in the last 15 years avoid and lower tariffs. Contact us at our Michigan office at 734-855-4999 or call our Chicago office at 773-920-1840.

$30k-seized-Detroit-CBP

Detroit CBP Cash Seizures For November Currency Reporting Violations

Detroit CBP reports large money seizures at Detroit Metro Airport (DTW), the Ambassador Bridge, and Detroit-Windsor Tunnel (they also happen at Port Hurton, too) for the month of November. These cash seizures could be avoided by filing a FinCEN 105 form by anyone who is transporting more than $10,000 into or out of the country.

Why does CBP seize cash?

CBP seizes cash because there is a lot of misinformation among travelers, the vast majority of whom are foreign-born individuals.

First, there is a misconception among the public about the reporting requirement. People will call me tell their story as part of a free consultation and say things like, “I know you can’t take more than $10,000, so…”

And I have to stop them right there and say, “No, you’re wrong there. You can take as much money as you want, you just have to file a form and give it to CBP before you leave or upon arrival.”

Second, another one I hear less frequently is, “I reported less than $10,000 because I didn’t want to have to pay taxes on it.”

Wrong. Again. There are no taxes payable on the money when you bring it in the country. I am not saying money you bring into the country is always tax free; the income tax law and the cash reporting requirement are two different things. I repeat and carefully choose my words: CBP does not collect a tax on the money that you bring into or take out of the country!

Detroit CBP Cash Seizures in November: Four Stories

All the frequently asked questions aside, let’s dive into the stories (and photos) of the cash seizures conducted by CBP officers throughout the Port of Detroit amongst (most unsuspecting) travelers who carried more cash than $10,000. First, on November 1, there was an “intentional misreport” of over $17,000.

Second, on November 3, CBP seized $27,000 from a returning U.S. Citizen who reported having on $9,600:

Then, CBP reported on all the seizures made at Detroit Metropolitan Airport on a single day, which totaled $90,000!

Finally, in a single seizure from a Canadian citizen arriving in the United States, CBP seized a bit less than $20,000:

Has Detroit CBP seized cash from you for not reporting it?

You need a customs lawyer if Detroit CBP seized cash from you for not reporting it. Read our trusted customs money seizure legal guideย (or watch the videos) and can contact us for a free money seizure consultation by clicking the contact buttons on this page.
Audemars Piguet Royal Oak Offshore seized by CBP

Philly Failure to Declare $80 in Luxury Purchases – 19 USC 1497

CBP has publicized a violation of 19 USC 1497, a law which requires all arriving travelers to the United States to declare purchases that they made while abroad.

As the story relates, there is an $800 exemption on duty for purchases. Put another way, you can spend up to $800 on items and not pay duties on them. Anything over $800, and you have to pay duties on the merchandise. Thus, some people try to hide the fact that they bought stuff to avoid having to pay the duties.

Bad idea. After giving some bad halloween puns, and explaining the traveler was given “multiple chances” to declare his purchases, then:

During his primary inspection, the traveler declared to a CBP officer that he possessed only $700 in merchandise that he bought on his trip. The primary officer referred the man to a secondary examination where the traveler continued to declare only $700 in merchandise. During a subsequent baggage examination, CBP officers discovered merchandise and receipts totaling $80,932.

The merchandise included an Audemars Piguet Royal Oak Offshore watch, Gucci, Chanel, and Yves St Laurent handbags, a Dan John bomber jacket, and two pairs of Golden Goose Ball Star sneakers.

Travelers who fail to truthfully declare the total amount of their purchases that exceed the duty exemption have the option to pay the appropriate duty for their merchandise along with a steep duty penalty, or they may opt to abandon the merchandise.

No word on whether the goods were seized or if on-site mitigation was afforded, allowing the man to pay a penalty but keep his merchandise.

Has CBP in Philly seized your property or given you a penalty for a failure to declare?

A failure to declare is serious, and can get seriously expensive. To get the best possible outcome, you will need to properly determine the duties owed (which involves classifying the products on the tariff schedule [HTSUS] properly) and also argue all the factors in your favor which warrant mitigation, and explain away any aggravating factors that are present that could lead you to a higher penalty.

If the person fails to pay the penalty, the government may bring a lawsuit against them in federal district court to recover the penalty in the form of a judgment, after which point the government can lien property, garnish bank accounts, and seize property.

Great Lakes Customs Law has been very successful in getting these kinds of penalties reduced and, sometimes, even eliminated entirely.ย You should contact us today to help you file a petition for mitigation, to get your seized merchandise back and to reduce the penalty for failure to declare to the lowest amount possible. If youโ€™ve already paid duties and penalty, contact us for an evaluation of your case to see if we can get some of your money refunded.

$15,000 bundled in rubber bands with notes

Detroit CBP Money Seizure Roundup for September

CBP in Detroit has continued to log large money seizures for smuggling, structuring, and failing to report (on form FinCen 105)ย  cash through the month of September, building on the money seizures they made through summer (which I previously blogged about here).

CBP has been sharing photographs of these money seizures on the X account for the Director of Field Operations for Detroit. CBP seizes money from anyone entering or leaving the country at Detroit Metropolitan Airport, the Ambassador Bridge, and the Detroit-Windsor Tunnel who breaks the law that requires the money be reported.

The first post is from September 14, where a “pair of travelers” had $16,000 seized. I assume they were traveling together and were related, otherwise it seems unlikely both of their cash was seized (oh, the structuring problems…)

 

Next, $15,000 was seized on September 16 for “intentionally misreport” of the money. The intentionality of the misreported does not matter for legal purposes. A report has to be accurate, whether you intended to do it or not.

On September 24, CBP in Detroit seized $11,000 in money from a returning U.S. citizen at the Ambassador Bridge. This likely means that the person left the country with more than $10,000, too, but probably didn’t report it. Technically, that would be 2 violations of 31 USC 5316 (once upon exit, then again upon re-entry), but the person was only caught once.

On September 25, Detroit CBP seized money that CBP seems to imply was smuggled because it was concealed in papers and book binding (not depicted, unfortunately):

In another “pair” seizure, on September 27, CBP seized $30,000 in money:

Finally, CBP seized $17,000 from an Israeli citizen who was arriving in the United States at the Ambassador Bridge:

Has Detroit Metro Airport CBP seized your money?

If Detroit CBP seized your money, you need a lawyer. Read our trusted customs money seizure legal guideย (or watch the videos) and can contact us for a free money seizure consultation by clicking the contact buttons on this page.