Category: News

Trump Tariff Exemption: IEEPA and 50 USC 1702(b)(3)

There is an exemption to certain tariffs imposed by President Trump under authority of the International Emergency Economic Powers Act.

The law is 50 USC 1702(b), which exempts from duty the following:

information or informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds.

These exceptions have found their way into the HTSUS. CBP explains it as follows:

Headings 9903.01.22, 9903.01.12, 9903.01.03, and 9903.01.31 describe informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact discs, CD ROMs, artworks, and news wire feeds.

Goods properly classified under the following headings and subheadings of the HTSUS may qualify for the exception under 9903.01.22, 9903.01.12, 9903.01.03, and 9903.01.31:  Chapter 49; goods provided for in headings 3704, 3705, 3706, 5807, 8310, and 9701 through 9705, inclusive; goods provided for in subheadings 6307.90.30, 6307.90.85, 8523.80.10, 8523.29, 8523.41, 8523.49, 9405.61, and 9405.69.

You can read the FAQ here. That’s all the guidance that exists for what type of goods qualify for this exemption, with sparse instances of how it has been interpreted; for example, in the past, religious texts have been considered to qualify as informational materials when coming from Iran.

To learn if your goods qualify for this exemption, consider hiring us to make a Binding Ruling Request with CBP.

IEEPA Tariff exemption questions?

Do you have questions about IEEPA tariff exemptions? We have answers for you. Great Lakes Customs Law has been advising importers for more than 15 years. Call us at (734) 855-4999 or fill out the form below:

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Last updated: April 19, 2025 at 12:49 pm

 

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, Ky— 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 CBP’s Centers of Excellence and Expertise, the agency’s trade experts, and if genuine, would have had a combined Manufacturer’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 designer’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. 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 see 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 our contact page. We are able to assist petitions and in penalty cases by customs

Cash and Gold Seized by CBP in Dulles

Dulles CBP Seizes $90K in Cash from 5 people: August 2024

The latest CBP money seizure news publicized comes to us from Dulles airport (again). In the story below, CBP seized a total of $90,535 from different people at different dates in August.

CBP seized the money for violation of the currency reporting requirements, which includes the failure to report the currency using a FinCEN 105 form.

STERLING, Va. – U.S. Customs and Border Protection officers remind travelers heading on overseas trips to comply with U.S. currency reporting laws after officers seized a combined $90,535 from five travelers during August at Washington Dulles International Airport.

Travelers can take as much currency or other monetary instruments they want on their international trips; however, federal law requires travelers to report all currency of $10,000 or greater to a CBP officer. CBP officers will assist travelers in completing the U.S. Treasury Department currency reporting form – the Report of International Transportation of Currency or Monetary Instruments [FINCEN 105].

Travelers can get an early start on reporting their currency by completing the FINCEN 105 PDF, or guided FINCEN 105 online form on CBP’s website prior to a CBP arrivals inspection or departure inspection.

In addition to having their currency seized, travelers risk other consequences, such as missing their departure or connecting flight, interrupting vacation plans, or facing potential criminal prosecution.

Of the five seizures, four were recorded on travelers departing the United States to either Bogota, Colombia, Doha, Qatar, or Accra, Ghana. The fifth seizure was recorded on a traveler arriving from Shanghai, China.

CBP currency detector dog Fuzz, a 4-year-old male yellow labrador retriever, helped to detect unreported currency during three of the seizures.

During each inspection, CBP officers explained U.S. currency reporting laws to the travelers and asked how much currency they possessed. Each of the travelers provided verbal and written declarations of their currency, and as necessary, officers helped travelers complete FINCEN 105 forms for those who reported over $10,000.

During subsequent searches of the travelers and their carryon baggage, CBP officers found additional unreported currency and seized the currency.

CBP is not releasing any of the travelers’ names because none were criminally charged.

Has Detroit Metro Airport CBP seized your cash?

If CBP at Detroit Metro Airport seized your cash, you need a lawyer. Read our trusted customs money seizure legal guide (or watch the videos) and can contact us for a free currency seizure consultation by clicking the contact buttons on this page.
Stacks of money seized by CBP officers in Pharr, Texas.

Texas CBP seizes $85K in unreported and smuggled money; 1 arrested

Another day, another customs money seizure. This one in particular happened to the U.S.-Mexico border in Pharr, Texas, and actually involved an arrest. CBP officers can arrest anyone for the not reporting, structuring, or smuggling cash, but most often, they do not.

The cash reporting requirement laws in Title 31 of the U.S. Code allow for CBP to choose whether to proceed as a civil matter or criminal matter. For the unlucky 19 year old fellow involved in the what seems to be a bulk cash smuggling offense, he was arrested.

There are no specifics on how the money was hidden within the vehicle, only that it was discovered by a non-intrusive examination. Here’s the story:

PHARR, Texas – U.S. Customs and Border Protection officers at Hidalgo/Pharr/Anzalduas Port of Entry this weekend seized $85,000 in unreported currency hidden within a vehicle during an outbound examination.

“Or officer continue to maintain strict vigilance and that dedication to duty, inspection skill and experience contributed to this significant outbound currency seizure,” said Port Director Carlos Rodriguez, Hidalgo/Pharr/Anzalduas Port of Entry. “These types of seizures, often involving proceeds from illicit activity, have significant impact and reflect CBP’s ongoing commitment to our priority border security mission.”

Stacks containing $85,000 in unreported U.S. currency seized by CBP officers during an outbound examination at Pharr International Bridge.

The seizure occurred on Sunday, April 14 at the Pharr International Bridge when a CBP officer referred a southbound vehicle driven by a 19-year-old male U.S. citizen for a secondary examination. Following a thorough examination that included use of a nonintrusive inspection system, CBP officers discovered a total of $85,000 in unreported currency hidden within the vehicle.

CBP officers seized the currency. Homeland Security Investigations special agents arrested the driver and initiated a criminal investigation.

Has Texas CBP seized your money?

If Texas CBP seized your money at Pharr, Hidalgo, Anzalduas, Laredo, or elsewhere, we urge you to call us for a consultation before considering doing it yourself. You probably will not be happy with the outcome if you do, based on their’ aggressive posture in most cases. Read our trusted customs money seizure legal guide (or watch the videos) and can contact us for a free currency seizure consultation by clicking the contact buttons on this page.

YouTube Logo

Electronic FinCen105 From CBP

In the past few years, CBP has made it possible to file a FinCEN 105 form online at this website. Common sense would tell you if you file the report that you’re carrying more than $10,000 in cash (or monetary instruments) online, you can avoid having to go through the hassle of reporting the money in person.

That’s common sense, anyway. So much for that, because you’d be 100% wrong. If you file the report online, you still have to physically report to CBP as confirmation! For this reason, I did a new YouTube video on the topic:

You can also see my other YouTube videos on related cash seizure topics on our channel here: Great Lakes Customs Law YouTube Channel

Has CBP seized your money?

Has CBP seized your money? If so, we can help. Read our helpful customs money seizure legal guide (or watch the videos) and contact us for a free currency seizure consultation by clicking the contact buttons on this page.

 

Chart of Detroit Field Office FY21 Enforcement Stats

CBP Detroit Seizes $5.6 Million in 2021

Cash seizures by Detroit CBP are picking up steam, as travel increased over the summer months as the pandemic (appeared) to diminish. You’ll recall in June, we reported on the 60% decline in cash seizures in Detroit; now, CBP is reporting (among other interesting statistics) that cash seizures have increased by 30% from FY20 to a total of $5.6 million. This is still far shy of the $7.8 million seized in FY 2019 (the record, as far as I can tell, was $10 million in FY 2015!).

Here’s the interesting parts from the full story:

The Detroit Field Office includes the Ambassador Bridge and Detroit Windsor Tunnel, the Blue Water Bridge in Port Huron, the International Bridge in Sault Ste. Marie, and Detroit Metropolitan Airport.

    • Firearms/Ammunition ~

A total of 181 firearms were seized – along with 40,000 rounds of ammunition which is a 650% increase from Fiscal Year 2021 .

Undeclared Currency ~

The amount of undeclared currency seized rose 30% from FY20 to a total of $5.6 million.

Arrests ~

A total of 181 individuals were arrested in Fiscal Year 2021 for reasons to include: narcotics smuggling, human smuggling, firearms violations, and fraud.

Trade Stats ~

In Fiscal Year 2021 the Detroit Field Office enhanced the nation’s economic prosperity by processing 2,300,000 commercial trucks which was a 9% increase from 2020. Detroit continues to be the second busiest truck crossing in the entire United States and continues to process approximately 20% of all commercial trucks entering the United States annually. The Detroit Field Office also continued to strengthen its ties with the trade community and international supply chains in 2021 which resulted in a 12% increase of international trade entering the United States via ports of entry in Michigan worth $138 billion.

Agriculture Stats/Seizure – Securing American Agriculture

In Fiscal Year 2021, Detroit Field Office CBP agriculture specialists helped protect America’s agriculture, natural resources, and economic prosperity, intercepting 1,253 pests from entering the United States

Has Detroit CBP seized your cash?

If CBP in Detroit seized your cash, you need a lawyer. Read our trusted customs money seizure legal guide and can contact us for a free currency seizure consultation by clicking the contact buttons on this page.
Cash Guns and Drugs Seized by Detroit Customs

Cash Seized by Detroit CBP, with Guns & Drugs

Cash continues to be seized by U.S. Customs & Border Protection at the Port of Detroit, as the tweet from the Director of Field Operations below shows. In this case, the seizure of the money is likely for reasons other than failure to report the cash, but probably for bulk cash smuggling or violations related to money laundering or illegal activity (drugs/gun trafficking, etc.).

Here’s a tweet from the Detroit DFO (Director of Field Operations) for CBP:

This is a reminder that even if money is properly reported to CBP, they can still seize it for other reasons, with sufficient cause for seizure. In this case, someone traveling with cash, guns, and drugs is pretty obviously up to no good.

Has CBP Detroit Seized Your Cash?

If CBP Detroit seized your cash, we can help you just live we’ve helped over 425 people get back their seized money over the past 10 years. Read our helpful customs money seizure legal guide (or watch the videos) and contact us for a free currency seizure consultation by clicking the contact buttons on this page.

British Pounds and USD Seized by CBP at Dublin, Ireland Pre-Clearance

Passenger Fails to Report British Pounds at Dublin Pre-Clearance, CBP Seizes

CBP Pre-Clearance operations in Dublin, Ireland, seized $61,000 worth of British Pounds that was being taken to the United States (without reporting it) by a traveller. It’s an interesting story because this seizure by United States Customs & Border Protection took place in Dublin, Ireland.

The story says its a seizure of money for not reporting it (i.e., undeclared cash), but if the sign in the background is to believed, the money was also smuggled (i.e. hidden, bulk cash smuggling).

This is possible because CBP operates “pre-clearance” centers where you go effectively go through U.S. customs before ever leaving country/airport you are travelling from. Back in 2006, before I knew anything about pre-clearance, I was processed through CBP’s Dublin pre-clearance center. It really caught me off guard to see uniformed CBP officer’s in the middle of Ireland.

Have you had money seized at CBP in Dublin Pre-Clearance?

If CBP in Dublin Pre-Clearance seized your cash, we urge you to call us for a consultation before considering doing it yourself. You probably will not be happy with the outcome if you do, based on their’ aggressive posture in most cases. Read our trusted customs money seizure legal guide (or watch the videos) and can contact us for a free currency seizure consultation by clicking the contact buttons on this page.

CBP Seizes Helicopter Drones for FCC label violations

CBP in Detroit, as part of a larger seizure that we blogged about not long ago, has seized 4,600 radio-controlled drone helicopters. But, because they did not have the appropriate FCC labels (certifying compliance of the product with FCC regulations), they have been seized. Here’s the story from CBP, along with an embedded tweet with more pics of the merchandise from Director of Field Operations for Detroit.

DETROIT— U.S. Customs and Border Protection (CBP) has effectively grounded more than 4,600 remote controlled helicopter drones at the Fort Street Cargo Facility.

The 4,619 drones, valued at approximately $69,000, were seized after officers and import specialists discovered the merchandise did not meet Federal Communications Commission labeling requirements. The shipment was also determined to be undervalued by nearly $62,000, and subject to legislative duties as outlined in Section 301 of the Trade Act of 1974.

The intended imports, which originated from China, were seized June 1 in conjunction with a previous shipment containing more than $400,000 in counterfeit merchandise. Those items were seized in late May.

“The CBP employees in Detroit are committed to protecting the American consumer and the economy, while facilitating legitimate trade and travel,” said Devin Chamberlain, Port Director. “The products CBP prevents from entering the United States are those that could injure community health, public safety and the American way of life.”

Has CBP seized your imports for failing to meet FCC requirements?

If CBP seized your imports for failing to meet FCC requirements, or get a penalty for import violations, 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 our contact page.

Cash Seized by CBP at Presidio Texas

CBP Presidio Seizes $175,935 In Cash at Mexican Border

CBP in Presidio, Texas seized $175,936 when inspecting people leaving the country for Mexico on June 7, 2020. The story which is quoted below, says that the money was hidden within the quarter panel (i.e., in the body panels above the front wheels) of a vehicle.

Obviously, then, this money is not just “undeclared” as the story headline broadcasts, but also smuggled. The man who was driving the vehicle was arrested and “is facing federal currency smuggling charges.” That means he is being charged with bulk cash smuggling under 31 USC 5332.

The cash was smuggled, and the vehicle was outfitted for smuggling the cash, thus making them both subject to seizure under the customs law.

U.S. Customs and Border Protection Office of Field Operations officers conducting southbound operations at the Presidio port of entry yesterday afternoon, stopped a 22-year-old male U.S. citizen who was attempting to leave the country with $175,935 in unreported U.S. currency.

The seizure was made at approximately 2:37 p.m. while CBP officers were conducting joint southbound operations with U.S. Border Patrol, Homeland Security Investigations (HSI) and the Presidio Police Department. A CBP officer selected a compact car for an intensive exam following an interview with the driver.

A CBP currency detector dog alerted to the front quarter panels of the vehicle. Twelve bundles were removed from non-factory compartments found on the driver and passenger side quarter panels of the vehicle.

CBP officers arrested the man. He was turned over to Homeland Security Investigations special agents and is facing federal currency smuggling charges.

Has Presidio CBP seized your money?

Has Laredo CBP seized your money? If so, we can help. Read our helpful customs money seizure legal guide (or watch the videos) and contact us for a free currency seizure consultation by clicking the contact buttons on this page.