Category: News

U.S. Currency Seized by CBP Wrapped In Rubber Bands and Black Plastic on a Table

Unreported Bulk Cash of $112k Seized by CBP

Posted by Jason P. Wapiennik on December 9, 2015

Nearly $112,000 in unreported bulk cash was seized by U.S. Customs (CBP) officers from a U.S. citizen heading into Mexico last week. In its news releases CBP almost always calls the seized cash “unreported” or “undeclared” even when its apparently hidden for the purpose of evading the requirement to report more than $10,000 in cash to Customs. But this news release correctly calls it unreported bulk cash because it was was found “hidden within the vehicle.”

The seizure took place on Wednesday, Dec. 2, when CBP officers working at the Brownsville and Matamoros International Bridge came in contact with a black 2007 Chevy Tahoe as it attempted to exit the United States into Mexico. The driver, a 25-year-old male United States citizen from Brownsville, Texas, was selected for a routine outbound inspection. CBP officers referred the vehicle to secondary for further inspection. During the examination, CBP officers utilized a non-intrusive imaging system and detected anomalies within the vehicle. A physical search of the Chevy Tahoe resulted in the discovery of multiple packages of bulk U.S. currency totaling $111,456 hidden within the vehicle.

This is classic unreported bulk cash smuggling laws, and as we explain in that article on the topic, means that even if legitimate intended source and use of the money are proven, a very high rate of forfeiture will apply; meaning that in the best case scenario the unreported bulk cash smuggler will get 50% of his money back from Customs, and at worst, 0%.

Unreported bulk cash consequences

In unreported bulk cash smuggling cases a person may face criminal charges, or may just face civil forfeiture and civil monetary penalties for the violation. If you have had unreported bulk cash seized by Customs, get your free currency seizure consultation.

Laredo CBP Seizes $266,000 in Currency

Posted by Jason P. Wapiennik on September 24, 2015

This Laredo Customs currency seizure story proves that everything is bigger in Texas. In this case, Customs seized $266,000 in what they call unreported currency from a 22 year old heading south into Mexico. This story reveals more than just a failure to report, but also bulk cash smuggling, which is the intentional concealing of the money with the intent to evade the reporting requirement. Obviously, if it was only after an “intensive secondary examination” that “packages within the vehicle” were discovered then there was some attempt made to conceal the currency; we can thus logically presume that it was done for the purpose of it not being discovered by Customs so it would not have to be reported. Here is the story (full version here):

U.S. Customs and Border Protection (CBP) officers and agents at the Laredo Port of Entry seized $266,000 in unreported currency in an outbound enforcement action this weekend at the Gateway to the Americas Bridge.

“Our outbound team maintained their vigilance, utilized their keen inspection skills and seized a significant load of unreported currency,” said Port Director Joseph Misenhelter, Laredo Port of Entry. “Seizures of unreported currency like this one remove the profit potential from possible illicit activity and help advance our border security mission.”

The interception occurred on Saturday, Sept. 12 while CBP officers and Border Patrol agents conducting outbound (southbound) inspections at the international bridge referred a 2007 Chevy Equinox driven by a 22-year-old U.S. citizen from Dallas, Texas for a secondary inspection. CBP officers conducted an intensive secondary examination of the vehicle and discovered packages within the vehicle that contained $266,000 in unreported currency.

CBP officers seized the currency and the Chevy Equinox. The driver was turned over by CBP officers to Homeland Security Investigations (HSI) special agents for further investigation.

Individuals are permitted to carry any amount of currency or monetary instruments into or out of the U.S., however, if the quantity is more than $10,000, they will need to report it to CBP. “Money” means monetary instruments and includes U.S. or foreign coins currently in circulation, currency, travelers’ checks in any form, money orders, and negotiable instruments or investment securities in bearer form. Failure to declare may result in seizure of the currency and/or arrest.

CBP Seizes Passenger’s Fake Designer Wallets

Posted by Jason P. Wapiennik on September 9, 2015

U.S. Customs and Border Protection seized a large amount of counterfeit wallets from a traveler that was arriving from Japan. To the best of my knowledge, it is a pretty rare occurrence when Customs encounters somebody who is traveling from overseas with a lot of counterfeit items. Usually it would be sent through commercial means.

Typically, counterfeit importations are just subject to seizure. In other words, the ‘penalty’ is loss of the goods through government seizure and forfeiture. However, Customs can impose monetary penalties under 19 USC 1526(f) on “any person who directs, assists … aids and abets [in] the importation of merchandise for sale or public distribution” once the property is seized.

By bringing in such a large quantity of counterfeits this person may have exposed themselves to a monetary penalty (the equivalent of the MSRP of these items, if they were genuine) because Customs may presume that the large quantities means that is must have been intended for sale or public distribution. It could be that it was meant for public sale or distribution, or it could just be that all these articles were intended for personal use and the buyer just got carried away with buying them. Here’s the story:

A few of the counterfeit Burberry wallet seized assets by customs.

DALLAS – U.S. Customs and Border Protection officers working at the Dallas Fort Worth International Airport seized counterfeit Louis Vuitton and Burberry wallets, valued at $32,000. The items were seized Aug. 4 and destined for Ruston, Louisiana.

CBP officers conducted an inspection of a passenger arriving from Narita, Japan with checked bags. During the inspection, officers discovered 58 brand-named wallets that appeared to be counterfeit. The traveler admitted the items he packed were counterfeit. The items did not appear to be of the quality consistent with legitimate goods as the items included unusual labeling and the markings on the wallets were not manufactured by the trademark holders.
Counterfeit Burberry wallets were among those seized from a traveler’s suitcase.

Louis Vuitton counterfeits were also seized by customs. The combined value totaled at $32.

“Packing counterfeit merchandise in suitcases doesn’t release passengers from their obligation to adhere to U.S. import laws,” said Dallas CBP Port Director Cleatus Hunt. “This seizure protects the trademark holder, their businesses and their employees and denies the counterfeiter from reaping profits from the sale of illegitimate goods.”

On a typical day in fiscal year 2014, CBP officers around the country seized more than $3.4 million worth of products because of Intellectual Property Rights (IPR) violations. Since 2007, CBP identified IPR enforcement as a priority trade mission. For additional statistics and a list of the most popular counterfeit items and their worth visit the fiscal year 2014 IPR report.

You might be facing penalties from customs for importing counterfeit merchandise. We can help. Typically, we recommended preparing and filing a petition, with the assistance of legal counsel, which argues persuasively for the substantial mitigation, or when the facts and law warrant it, cancellation of the penalty in full.

Great Lakes Customs Law has been very successful in getting these kinds of penalties reduced and, sometimes, even eliminated entirely (some history of our success is HERE).If you have had merchandise seized by customs because they allege it is counterfeit and contains trademark violations and/or have a received a notice of penalty for importing alleged counterfeits or for making an importation contrary to law, call our office at (734) 855-4999 to speak to a customs lawyer, or e-mail us through our contact page. We are able to assist petitions for customs penalties and seizures around the country, including Detroit, Chicago, Atlanta, New York, Los Angeles, Orlando and many other places. Please read these other articles:

CBP at Miami International Airport Seizes $228,000 in Counterfeit Currency

Posted by Jason P. Wapiennik on September 3, 2015

U.S. Customs seized around $230,000 of currency – all suspected counterfeit – that came in a package from Peru to Miami Airport. The fully story is HERE.

CBP opened the cushions and found a total of $228,100 in suspected counterfeit U. S. currency.

On July 23, CBP officers selected the package for an intensive examination and observed several densities in an unusual pattern on the X-ray screen. CBP officers opened the packaged and discovered various cushions including some with unusual densities.

Officers X-rayed the cushions individually and confirmed the densities. CBP officers then cut open the cushions and found a total of eleven sets of plastic covers taped together. CBP opened the covers and found a total of $228,100 in suspected counterfeit U. S. currency.

CBP observed that the bills were of poor quality and closer scrutiny questioned their validity. CBP notified the U.S. Secret Service and the bills were determined to be counterfeit. CBP seized the counterfeit currency and turned it over to the U.S. Secret Service for further investigation.

Hopefully the currency customs seized from you is real so you have a chance to get it back.

If you have had currency seized from Customs do not try to respond yourself but hire our firm, because we know what we are doing and have successfully handled many cases like yours. If you have questions, please give us a call at (734) 855-4999. We are able to assist with cash seized by customs around the country, including Chicago, Atlanta, New York, Los Angeles, Orlando and many other places, and not just locally in Detroit. Please read these other articles:

Seizure of currency and monetary instruments by U.S. Customs

Seizure for bulk cash smuggling into or out of the U.S.

Structuring currency imports and exports

Is it $10,000 per person? Under what circumstances is filing a report with Customs for transporting more than $10,000 required?

Criminal & civil penalties for failing to report monetary instrument transportation

Is only cash currency subject to seizure by Customs?

Responding to a Customs currency seizure

How do I get my seized money back?

Getting money seized by U.S. Customs back while staying overseas

How long does it take Customs to decide a petition for a currency/monetary instrument seizure?

Statute of Limitations for Currency Reporting Violations

Filing a Petition for Seized Currency (with Sample and Tips) with CBP

Don’t Talk About Your Customs Currency Seizure Case

CBP Seizes Alleged Counterfeit Auto Parts in Florida

Posted by Jason P. Wapiennik on May 20, 2015

Here’s one of those seldom thought about counterfeit merchandise seizures: counterfeit autoparts. When you think about counterfeits you usually think about currency, clothing, watches, and things like that. You don’t typically think of auto parts being something is counterfeited. But apparently they are out there, and it happens a lot, and its dangerous. Here’s the story from Customs (full version here):

U.S. Customs and Border Protection (CBP) officers and import specialists seized more than 3,260 counterfeit automobile parts during an inspection at Port Everglades on May 8. The manufacturer’s suggested retail price of the counterfeit products is around $280,000.

CBP, along with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), targeted the shipment as part of a joint multi-layered enforcement operation focused on interdicting illegal counterfeit automotive parts.

The seizure included over 180 different types of vehicle parts ranging from small fuses to front ends.

Counterfeit automotive parts are a safety risk as they are of inferior quality compared to the authentic product and their failure to perform to standard could cause safety issues resulting in catastrophic failure.

CBP Fines Agricultural Products Smugglers $98,000

Posted by Jason P. Wapiennik on April 22, 2015

When you heard that someone is a smuggler, or that they’ve smuggled something you typically think of smuggling drugs or other nefarious types of products. Most people don’t realize smuggling is essentially just another word for concealing. Concealing can be accomplished by outfitting a vehicle or container to hide products, by hiding illicit product with legitimate products in the same shipment, or by falsely declaring the contents of a shipment on an invoice or manifest.

In the story we quote below, the “shippers and freight forwarders employ[ed] fictitious shipper names and addresses, and provide[d] unrelated cargo descriptions” in an effort to smuggle the goods into the country. The goods were prohibited agricultural goods that contained unsafe foods or a risk of harboring invasive insect species. CBP takes this very seriously in the wake of the destructive effects posed by species that arrived in the United States via importation, like the Emerald ash border (see our article on Regulated Wood Packaging Violations)

In the story, U.S. Customs & Border Protection Agriculture Specialists conducted a special operation to “interrupt an extensive network of purposely mislabeled and high risk agriculture products coming from Hong Kong, China, India, and Saudi Arabia that were “en route to various locations throughout the United States, including ethnic restaurants, food stores, and private residences.”

From the story, which you can read in full HERE, that the purchases were largely made by consumers over the Internet.

Various concealment methods were discovered during this operation. CBPAS found meat smuggled in fish packets and tea bags, fruits inside sealed cookie bags, loose and packaged seeds within candy wrappers, and seeds in foil-lined bags in an effort to avoid x-ray detection.

The prohibited contraband included fresh plums and other fresh plant products, eggs, propagative plant materials including invasive species, and fresh and processed poultry and pork products coming from countries with known virulent disease outbreaks such as Highly Pathogenic Avian Influenza (HPAI) and Foot and Mouth Disease (FMD).

In total, this special operation yielded 1,104 inspected shipments, 73 shipments Returned to Origin (RTO), 198 Emergency Action Notifications (EANs), four mis-delivery penalties, and 98 mis-manifesting penalties netting a total of $98,000 in fines. Additionally, CBPAS destroyed over 900 pounds of contraband from 146 shipments and found 10 pest interceptions.

* * *

If you need help petitiong for the mitigation of penalties with customs you should contact our office by e-mail or call (734) 855-4999. We are experienced in defending customs penalties and preparing detailed and well argued petitions for mitigation of penalties or liquidated damages. You can also make use of our other articles, such as:

Customs penalties articles:

CBP Seizes Counterfeits from Traveler from Vietnam

Posted by Jason P. Wapiennik on April 14, 2015

U.S. Customs and Border Protection seized a large amount of counterfeit clothing from a traveler that was arriving from Vietnam. To the best of my knowledge, it is a pretty rare occurrence when Customs encounters somebody who is traveling from overseas with a lot of counterfeit clothing.

By bringing in such a large quantity of counterfeits this person may have exposed themselves to a monetary penalty (to the tune of the MSRP of $22,000) because Customs may presume that the large quantities means that is must have been intended for sale or public distribution. It could be that it was meant for public sale or distribution, or it could just be that all these articles were intended for personal use and the buyer just got carried away with buying them. Here’s the story:

U.S. Customs and Border Protection officers working at the Dallas Fort Worth International Airport seized 220 clothing items with a Manufacturer’s Suggested Retail Price of just over $22,000 found in a passenger’s checked luggage.

CBP officers conducted an inspection of a passenger arriving from Vietnam with six checked bags and discovered multiple clothing items in commercial quantities that appeared to be counterfeit, violating intellectual property rights.

The counterfeit items included 82 different Adidas products ranging from tank tops to windbreakers, 36 different Abercrombie items, 65 Chanel pieces, 12 Nike sweatshirts, 15 Ralph Lauren items, and an assortment of other name brand designers. The seized items did not appear to be of the quality consistent with legitimate goods as the items included unusual lettering and labeling and the markings on the clothing were not manufactured by the trademark holders.

“Counterfeit items even in small quantities is an IPR violation and adversely affects unsuspecting consumers, businesses and our economy,” said Port Director Cleatus Hunt. “This type of seizure typically occurs through other commercial shipping means, however, we will take any opportunity to intercept the smuggling of counterfeit goods. This seizure in the airport environment represents our commitment to enforcing priority trade issues.”

CBP Seizes $1.2B in counterfeits in FY 2014

Posted by Jason P. Wapiennik on April 8, 2015

In addition to currency seizures and drug seizures, U.S. Customs and Border Protection seizes counterfeit merchandise imported into the United States. CBP considers counterfeit interception to be a priority trade issue. Customs has released their annual statistics for 2014 wherein they breakdown what they seized throughout the past fiscal year. The report includes the total volume of seizures, value, and countries from which the counterfeit goods were exported. The summary from Customs is repeated below:

U.S. Customs and Border Protection (CBP) and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) today announced the fiscal year 2014 results of an aggressive enforcement program to protect the United States from counterfeit and pirated goods. CBP and HSI are the components within the Department of Homeland Security (DHS) responsible for the enforcement of intellectual property rights (IPR).

“Protecting intellectual property rights is a critical part of CBP’s trade enforcement mission and critical to protecting American consumers,” said Commissioner R. Gil Kerlikowske. “In 2014, strong partnerships with our federal enforcement counterparts, effective targeting of high risk shipments and frontline interceptions of cargo at America’s ports of entry produced more than 23,000 seizures of fake products worth an estimated $1.2 billion that could have cheated or threatened the health of American consumers.”

[ . . . ]

In fiscal year 2014, there were 23,140 intellectual property rights seizures with an estimated manufacturer’s suggested retail price or MSRP of $1.2 billion, the value of the goods had they been genuine. In addition, 144 shipments of circumvention devices were seized for violation of the Digital Millennium Copyright Act. CBP also enforced 44 exclusion orders in fiscal year 2014. Since 2007, CBP has identified intellectual property rights enforcement as a priority trade mission. Although IPR seizures declined slightly in 2014 from 2013, CBP recorded its third busiest year for seizures since 2005.

[ . . . ]

Wearing apparel and accessories continue to be the number one commodity classification based on number of seizures with 7,922 seizures or 28 percent. Watches and jewelry are the largest commodity classification by value with an estimated MSRP of $375 million or 31 percent.

The People’s Republic of China remains the primary source economy for counterfeit and pirated goods seized with a total value of $772 million, representing 63 percent of all IPR seizures by MSRP. Hong Kong ranks second with $310 million or 25 percent.

Tactical interagency collaboration with the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) resulted in 683 arrests, with 454 indictments and 461 convictions.

Customs Seeks to Enforce § 1592 Penalties for Misclassification at CIT

Posted by Jason P. Wapiennik on March 12, 2015

The industry website RubberNews.com has a story about a tire distributor called China Tire out of California who is facing a potential $17 million fraud penaltiy under 19 USC § 1592 for allegedly fradulent, negligent, or grossly negligent mis-classification of certain bus and truck tires into the United States. According to the story, which relies on the government’s allegations filed in the Court of International Trade, China Tire basically did some broker-shopping after its first customs broker refused to re-classify its product into a duty free Customs Money Seizure provision of the Harmonized Tariff Schedule (HTS).

Instead of classifying them as bus and truck tires, they were classified as duty-free pneumatic tires. This classification caught the attention of Customs and requests for information were sent out. China Tire responded to these requests that “they were pneumatic tires for passenger cars.” Subsequently, China Tire directed its broker to again change classification to tires that were for agriculture and forestry uses.

What followed were standard 19 USC § 1592 administrative penalty proceedings:

In July 2011, CBP issued a pre-penalty notice against China Tire and its executives John Cheng and Licheng Wang. In that notice, the complaint said, Wang and Cheng were held jointly and severally liable for 253 false entries, with a proposed penalty of nearly $8.1 million.

China Tire’s fraudulent entries cost CBP more than $404,000 in revenue, of which more than $242,000 is still unpaid, according to the complaint.

The current complaint proposes three alternative counts against China Tire, based on charges of fraud, gross negligence or negligence.

If found guilty of fraud, China Tire would face a penalty of nearly $16.9 million, plus the unpaid tariff balance. If found guilty of gross negligence, it would face a penalty of just over $1.6 million, plus the unpaid tariffs. If found guilty of negligence, it would face a penalty of $808,000, plus the unpaid tariffs.

A prior disclosure of the mis-classification would have potentially substantially reduced China Tires’ liability. If you face duty or penalty liability with customs you should contact our office by e-mail or call (734) 855-4999. We are experienced in defending customs 592 penalties, disclosing potential violations through prior disclosures, responding to notices of penalties, and preparing detailed and well argued petitions for mitigation of penalties or liquidated damages. You can also make use of our other articles, such as:

Customs 592 penalties articles:

Picasso Seized by Customs, Forfeiture Pending

Posted by Jason P. Wapiennik on March 10, 2015

U.S. Customs & Border Protection recently encountered and seized a stolen Picasso painting worth millions of dollars at a New Jersey FedEx facility. Customs seized it for the simple reason that the value was only manifested (or declared) as $37. That’s enough to make it subject to seizure and forfeiture.

The Customs officers involved deserve some praise for this seizure; people joke about picking up a Picasso at a garage sale and this case, for Customs, is pretty similar. Apparently, the stolen Picaso was sent from Belgium to the United States in December, 2014, and contained a Merry Christmas message. A small quote from the story (Fox News original here):

A stolen Picasso painting worth millions was nabbed by U.S. customs authorities in Newark, New Jersey who didn’t believe the Fed Ex package was a Christmas gift worth only $37.

[ . . . ] U.S. attorney for the Eastern District of New York Loretta E. Lynch filed a civil complaint to forfeit the Picasso and return it to France on Thursday.

[ . . . ] “The shipper was required to accurately declare the value…which is estimated to be worth millions of dollars. The FedEx airway bill and commercial invoice shipped with the Defendant declared its value as 30 Euros, or approximately $37.00,” court papers state.

[. . . ] U.S. and French authorities have not announced any arrests in the case.

What the story describes is an in rem forfeiture of the Picasso, which is a civil proceeding against the Picasso itself. Essentially, an in rem proceedings means that the Picasso itself is violator because it is here in the country illegally because it’s value was not properly declared (no doubt due to the actions, however innocent, of someone else). Because it is here illegally, that means it can be seized and forfeited to the U.S. Government. Once the forfeiture is complete, the story leads us to believe that the Picasso will be returned to the museum where it wound up missing many years ago.

That no one has yet been arrested could be the people involved were innocent purchasers, or because the French and U.S. governments are doing a deeper probe to judge the criminality of the actions of those involved and the chain of custody since it was originally stolen.

Has Customs seized your Picasso?

If you face penalty liability call our office at (734) 855-4999 to speak to a customs lawyer, or CONTACT US HERE. We are experienced in defending customs notices of penalties, and preparing detailed and well argued petitions for mitigation of penalties or liquidated damages.