Category: News

CBP Currency Seizure for Preclearance is Nassau

Posted by Jason P. Wapiennik on February 13, 2015

The on-going trickle of news releases from Customs regarding the annual totals of currency seizures continues. Here is a report, also quoted below, that the U.S. Customs pre-clearance center in Nassau, Bahamas, leads all other pre-clearance centers in currency seizures.

I also expect a slight up-tick in currency seizures with the the upcoming February 19 lunar new year and the traditional gifting of lucky money in red envelopes through China, Vietnam, and other parts of Asia. Customs can target their enforcement actions. If your lucky money is seized by CBP/customs call our office at (734) 855-4999 to speak to a lawyer, or e-mail us through our contact page (see our case results here).

On to the story:

NASSAU, Bahamas—U.S. Customs and Border Protection officers at the Nassau Preclearance facility seized approximately $845,000 in unreported currency from passengers traveling to the United States from the Bahamas in fiscal year 2014.

Individuals are permitted to carry any amount of currency or monetary instruments into or out of the United States; however, if the quantity is $10,000 or higher, they must formally report the currency to CBP. If travelers have someone else carry the currency or monetary instrument for them, they must file a currency report for the entire amount with CBP. Failure to report may result in seizure of the currency and/or arrest.

“We are very proud of our officers’ attention to detail and hard work that resulted in a significant total seizure amount in 2014,” said Robert Allen Smith, area port director for CBP Nassau Preclearance. “CBP’s goal is compliance with the currency reporting requirements, and the easiest way for travelers to hold on to their currency is to truthfully report it all to a CBP officer.”

CBP Preclearance operations allow for advance inspection of passengers and special coordination with law enforcement upon arrival in the United States. Through preclearance, the same immigration, customs, and agriculture inspections of international air passengers performed on arrival in the United States are instead completed before departure at foreign airports. Currently, preclearance operations exist at 15 foreign airports in six different countries, benefitting air passengers, airports, and air carriers, in the United States and abroad.

Our customs law firm handles currency/money seizures made by customs in Detroit and around the country. We are able to assist with cash seized by customs nationwide, including Detroit, Chicago, Atlanta, New York, Los Angeles, San Francisco, and Orlando.

Please read these other articles about money seizures by customs:

Cross Border Customs Cash Seizure Nets $39k

Posted by Jason P. Wapiennik on February 2, 2015

U.S. Customs and Border Protection released some news about recent enforcement actions, including a seizure of about 39,000 from a Mexican man entering the United States. No mention if the person involved was arrested. Have you had cash seized by Customs? You can read our popular page on Responding to a Customs Money Seizure HERE. In short, the man can get some of his seized money back from Customs if he can prove the money came from a legitimate source and had a legitimate intended use.

TUCSON, Ariz. – U.S. Customs and Border Protection officers assigned to the Port of Douglas arrested two women – one from Douglas and one from Glendale, Arizona – as well as a Mexican national man, during separate weekend smuggling attempts involving more than 300 pounds of marijuana and nearly $39,000 in unreported currency. [ . . . ]

[On] Jan. 25, officers conducting outbound inspections referred a 34-year-old man from Mexico for further inspection of his Nissan truck. When officers searched the man and his vehicle, they seized nearly $39,000 in unreported currency.

Officers seized the vehicles [and] currency, and referred all … suspects to U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

Of course, even if not arrested that day the government has 5 years to criminally charge them. Our customs law firm handles currency/money seizures made by customs in Detroit and around the country. If you have had money seized by Detroit CBP/customs call our office at (734) 855-4999 to speak to a lawyer, or e-mail us through our contact page (see our case results here). We are able to assist with cash seized by customs nationwide, including Detroit, Chicago, Atlanta, New York, Los Angeles, San Francisco, and Orlando.

Please read these other articles about money seizures by customs:

Dulles Airport Money Seizure by Customs of $43,015

Posted by Jason P. Wapiennik on January 29, 2015

A Dulles airport money seizure by U.S. Customs and Border Protection (CBP) resulted in a seizure of $43,000 from a U.S. Citizen returning from Ethiopia at Dulles airport. The money seizure occurred even though he reported traveling with more than $30,000 to CBP at Dulles, because his report of $30,000 was inaccurate. Even if you report having more than $10,000, the report must be accurate or your money will be seized (read “Responding to a Customs Money Seizure” HERE). He failed to report an additional $13,015 that he was in his baggage, which in the end, cost him $43,015. To get the seized money back from CBP at Dulles he will need to prove it came from a legitimate source and that it had a legitimate intended use. If he gets his money back he will face a penalty for this violation of the currency reporting regulations.

STERLING, Va. — U.S. Customs and Border Protection (CBP) Office of Field Operations (OFO) at Washington Dulles International Airport seized more than $43,000 from a U.S. citizen Sunday for violating federal currency reporting regulations.

The man arrived on a flight from Ethiopia and presented a CBP Declaration form declaring that he was in possession of $30,000. A CBP officer referred him for a secondary inspection where he completed a U.S. Treasury Department form reporting $30,000. During a baggage examination, a CBP officer found an additional $13,015 for a total of $43,015. CBP officers seized the $43,015 and advised the traveler how to petition for the return of the currency.

There is no limit to how much currency travelers can import or export; however federal law requires travelers to report to CBP amounts exceeding $10,000 in U.S. dollars or equivalent foreign currency.

“Travelers who refuse to comply with federal currency reporting requirements run the risk of having their currency seized, and may potentially face criminal charges,” said Wayne Biondi, CBP Area Port Director for the Port of Washington. “The traveler was given the opportunity to truthfully report his currency. The easiest way to hold on to your money is to report it.”

Last week we reported on two Dulles airport money seizures. Neither of these individuals were arrested, but the government has 5 years to make criminally charges. Our customs law firm handles Dulles airport money seizures made by customs and at other airports in Detroit and around the country.

If you’ve experienced a Dulles airport money seizure, you can learn more from 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.

Wrong Turn in Detroit Results in Customs Seizure, Arrest

Posted by Jason P. Wapiennik on January 27, 2015

The news release below describes a fairly common occurrence; the wrong turn. I’ve had client’s make a wrong turn only to inadvertently end up at a border crossing and have their money confiscated by Customs for failure to file a report. In the case below, the guy who made the wrong turn had a couple of guns on him, which of course resulted in more than a civil seizure:

DETROIT- U.S. Customs and Border Protection (CBP) Office of Field Operations (OFO) Officers assigned to the Fort Street Cargo Facility arrested a man and seized three weapons during an examination this past weekend.

On January 17, 2015 a 58 year old Florida resident, made a wrong turn in a commercial truck onto the Ambassador Bridge and ended up on the Canadian side of the border. The man declared three weapons a .45 caliber hand gun, 12 gauge shotgun and .38 caliber revolver.

The individual was returned to the U.S. by Canadian Border Service Agency (CBSA) escort. CBP learned through computer databases, that the man has a criminal history for felony convictions involving carrying concealed weapons and drug possession.

“Our cooperation with CBSA is vital in taking prohibited and illegal weapons off the streets of our communities,” stated Roderick Blanchard, Detroit Port Director. “Teamwork such as this leads to positive outcomes for everyone.”

The man was arrested and turned over to ICE Homeland Security Investigations Task Force Officers along with the seized weapons. The man is facing State of Michigan charges for being a Felon in Possession of a Firearm.

If you made a wrong turn into the clutches of U.S. Customs and had your money or property seized, call our office at (734) 855-4999 to speak to a lawyer, or e-mail us through our contact page (see our case results here). We are able to assist with cash seized by customs nationwide, including Detroit, Chicago, Atlanta, New York, Los Angeles, San Francisco, and Orlando.

Please read these other articles about money seizures by customs:

Cash Seized by U.S. Customs and Arrest for Bulk Cash Smuggling

Posted by Jason P. Wapiennik on January 13, 2015

U.S. Customs reports on a recent customs bulk cash smuggling seizure from a Mexican national attempting to leave the United States. The money was seized and he is being criminally charged. The total amount seized from this individual was $37,181. In order to prevail on criminal bulk cash smuggling charges government must prove, beyond a reasonable doubt, the cash seized by customs was concealed in the vehicle for the purposes of evading the reporting requirement. That’s the essence of the crime of bulk cash smuggling.

Even though the currency was also seized as being involved in a bulk cash smuggling offense, there is a possibility to recover some of the money. To put it somewhat simply, first, he will need to establish that the seized cash came from a legitimate source and had a legitimate intended use. Then, the seized cash can be returned to the extent that seizure is unconstitutional: in other words, that seizure is a violation of the excessive fines clause of the U.S Constitution.

Let’s have a look at the story:

EAGLE PASS, Texas – Federal authorities at the Eagle Pass of Entry arrested a Mexican national Jan. 7, after finding a large amount of undeclared currency in his vehicle as he attempted to leave the country.

“Large amounts of currency may be imported and exported with the proper documentation,” said John Brandt, CBP Port Director, Eagle Pass. “Failure to report international transit of $10,000 or more could mean forfeiture of funds and criminal sanctions.

“Seizing undeclared currency at ports of entry serves to deprive criminal organizations of their profits.”

Around 3 p.m. Jan. 7, CBP officers at Eagle Pass International Bridge I, inspected a 2014 Volkswagen GLI as is departed the United States bound for Mexico. During inspection, officers discovered a total of $36,645 in U.S. currency and 7,890 Mexican pesos ($536.37 U.S.) in various locations throughout the vehicle and in the driver’s possession. Officers recovered currency totaling $37,181.

The driver, a 25-year-old Sabinas, Coahuila, Mexico man, was turned over to Homeland Security Investigations for federal prosecution on a charge of 31 U.S. Code § 5332 – bulk cash smuggling into or out of the United States.

The Office of Field Operations is the primary organization within U.S. Customs and Border Protection tasked with an anti-terrorism mission at our nation’s ports. CBP officers screen all people, vehicles and goods entering the United States while facilitating the flow of legitimate trade and travel. Their mission also includes carrying out border-related duties, including narcotics interdiction, enforcing immigration and trade laws, and protecting the nation’s food supply and agriculture industry from pests and diseases.

You can read our popular page on Responding to a Customs Money Seizure HERE. Our customs law firm handles currency/money seizures made by customs in Detroit and around the country; call (734) 855-4999 to consult with a customs lawyer today. If you have had money seized by Detroit CBP/customs call our office at (734) 855-4999 to speak to a lawyer, or e-mail us through our contact page (see our case results here). We are able to assist with cash seized by customs nationwide, including Detroit, Chicago, Atlanta, New York, Los Angeles, Las Vegas, and Orlando.

Please read these other articles about money seizures by customs:

$24,000 Seized by Customs at Amtrak Station

Posted by Jason P. Wapiennik on January 8, 2015

U.S. Customs reports on a recent customs money seizure from a mother and son entering the United States from Montreal via train. At entry, she reported recently traveling to Cuba and being in possession of $5,000 each. Turns out they actually had $24,000 total. And thus the money was seized by customs. Now the headline of the story says they were arrested but that detail is not in the story itself, just that the case is currently under investigation (the government has 5 years to criminally charge them). Let’s have a look at this story now (You can read our popular page on Responding to a Customs Money Seizure HERE):

ROUSES POINT, N.Y. –U.S. Customs and Border Protection officers from the Champlain Port of Entry working at the Rouses Point Amtrak station seized more than $24,000 in unreported US currency.

“A person can travel with any amount of currency they wish, there is no limit” said Paul Mongillo, CBP Port Director for the Port of Champlain. “The requirement is to declare amounts exceeding $10,000. This requirement is for currency entering and leaving the U.S.”

On January 4, CBP officers inspecting the Amtrak train from Montreal destined for New York City encountered an individual claiming recent travel to Cuba. The traveler provided a CBP declaration form and stated that she and her son each possessed$5,000 in U.S. currency. During a secondary inspection, multiple envelopes were discovered containing U.S. currency totaling more than $24,000. The traveler later admitted to possession of the unreported currency.

The currency was seized and the case is currently under investigation.

Travelers can avoid seizure by declaring currency amounts exceeding $10,000. International travelers carrying more than $10,000 into or out of the U.S. must report the amount they are transporting or risk seizure of the currency.

Travelers can make currency declarations by completing FinCEN Form 105 and giving it to a CBP officer. Currency is not limited to U.S. dollars and coins but all negotiable monetary instruments including traveler’s checks, money orders and securities. A complete list of negotiable monetary instruments is available on FinCEN Form 105.

This is the first story I’ve related on our customs law blog that involves a money seizure when the border was crossed by train, but of course customs can seize money when entered into the United States by any means, whether by train, bus, car, plane, or boat. I’m also not sure why the reference to a recent trip to Cuba was mentioned unless the traveler’s are U.S. Citizens and are prohibited from traveling to Cuba and that somehow raised suspcions.

Our customs law firm handles currency/money seizures made by customs in Detroit and around the country; call (734) 855-4999 to consult with a customs lawyer today. If you have had money seized by Detroit CBP/customs call our office at (734) 855-4999 to speak to a lawyer, or e-mail us through our contact page (see our case results here). We are able to assist with cash seized by customs nationwide, including Detroit, Chicago, Atlanta, New York, Los Angeles, Las Vegas, and Orlando.

Please read these other articles about money seizures by customs:

CBP Confiscates $82K From International Traveler

Posted by Jason P. Wapiennik on December 18, 2014

U.S. Customs reports on a recent customs money seizure from a woman attempting to cross the border. Something tipped the customs officers off as she left the U.S. and put her through a secondary inspection where they found, lo and behold, $82,077. If this individual is not prosecuted by the government for criminal violations, she faces the potentially difficult task of proving a legitimate source and legitimate intended use of the money. You can read our popular page on Responding to a Customs Money Seizure HERE.

Also, Customs gets the law wrong again, which now I am pretty sure they keep doing to get me worked up. The law only applies to “more than $10,000” not “$10,000 or more.” It’s the difference of a penny, but it’s still wrong to say $10,000 or more. Here is the story:

On Dec. 14, CBP officers working outbound operations at the Gateway International Bridge selected a white 1999 Cadillac Escalade for a secondary inspection. The driver, a 31-year-old female U.S. citizen from Brownsville, was arrested after officers discovered packages containing unreported U.S. currency concealed within the Escalade. Officers removed and seized three packages

that contained [$82,077 in] U.S. currency which was allegedly was being taken into Mexico without being properly reported.

After CBP Field Operations arrested the adult female, she was turned over to agents with Homeland Security Investigations (HSI) for further investigation.

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 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.

In this case, we could give the woman the benefit of the doubt and presume the legitimate source is the proceeds of a decade worth of scrimping and saving; and the intended use, perhaps she is a very generous person and was going to buy Christmas presents in Mexico, with cash. Then Customs swoops in, seizes her money, and ruins all her plans. But, if we assume she proves these two things, then this situation is regrettable for him and completely avoidable. But now, even if criminal charges are ultimately not filed or if he is ultimately found not guilty of a crime, she will still face civil forfeiture of the money and, if he wants it back, will have to fight for its return administratively, or in the courts.

Please read these other articles on customs moneys eizures:

Importer Allegedly Undervalues Shoe Imports and Gets Criminally Charged

Posted by Jason P. Wapiennik on December 9, 2014

Imports into the United States must be properly classified and valued. Classification has to do with categorizing them on the Harmonized Tariff Schedule of the United States (HTSUS) in an 8 digit tariff code, and a 2 digit statistical suffix; valuation has to do with reporting the dutiable value of the merchandise which is usually the amount paid for the merchandise, plus certain other charges. Classification and valuation are bedrock principles of customs compliance.

In this vein, I was alerted to a story about about a company that sells shoes/footwear which was, allegedly, reporting incorrect values to customs in order to save on duties. It looks like the company has been making its way in the courts for other reasons to, including trademark and breach of contract disputes. This story illustrates the importance of verify correct classification and valuation of merchandise; this can easily be done by requesting a prospective ruling from customs.

A federal grand jury in Sacramento on Thursday charged Romeo with evading about $5.6 million in customs duties. The company imports the popular Bearpaw brand of shearling slippers and boots and sells them nationally.

. . .

“Tom has been fully cooperating with customs over the past several years,” said attorney Malcolm Segal, with Segal & Associates PC in Sacramento.

…

Romeo has deposited more than $4 million with U.S. Customs while the issue remains unsettled, Segal said.

Segal said the dispute arises from a technical issue over whether the shoes are completed products or component parts. The duties are different depending on how the shoes are classified.

Romeo owns and operates Romeo & Juliette Inc., a company that imports shoes and boots made in China and distributed under the brand names Bearpaw and Attix. The company sells to many national retailers.

The indictment alleges that from 1994 through 2011 Romeo had employees and others create false invoices that undervalued footwear he imported from China.

Source: Sacramento Business Journal. It sounds as though Romeo & Juliette filed a prior disclosure based on their attorney’s statement that $4 million was deposited with customs while it considers if it owes any money. That’s a smart move. Unfortunately, violations of the customs laws often involve criminal consequences in addition to severe civil penalties. It appears in vogue for Customs to pursue criminal charges for import violations: In August we posted analysis of a story of smugglers circumventing anti-dumping duties by transshipping aluminum extrusions from China to Malayasia and importing them via false documentation in San Juan.

If you need help conducting due diligence, or 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:

The Government Wants Your Money

Posted by Jason P. Wapiennik on November 13, 2014

This is a Customs & Border Patrol story from KVOA, involving smugglers and a currency seizure. This is a little different than the usual customs money seizure case we handle or blog about, which is the seizures of money at the airport by customs (you can read our popular page on Responding to a Customs Money Seizure HERE). This story is not for a failure to report while crossing the border or arriving at an airport, but rather, the belief that it was connected to the drug trade and drug smuggling. This gave the officers an independent basis for the seizure, in which case the money does not have to be in excess of $10,000 to trigger seizure. This is the type of civil asset forfeiture our customs law firm does not typically involve ourselves in, but you can find more about why it’s so problematic HERE.

TUCSON – Tucson Sector Border Patrol arrested two undocumented immigrants and seized $10,000 after an agent stopped to assist a driver at State Route 85 near the Ajo area on Thursday, Nov. 6.

The agent offered his assistance after he noticed a vehicle pull over to the side of the highway. He found sugar sacks inside the vehicle, which according to the U.S. Customs and Border Protection are used for drug smuggling.

The agent then proceeded to do an inspection of the vehicle and the passengers, where he discovered the currency and the citizen status of the suspects.

The suspects were taken into custody and the vehicle and the $10,000 were processed for seizure.

If you have had cash seized by customs and are contemplating what to do next 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 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.

Read these other articles about customs money seizures:

Importing counterfeit headphones and criminal charges

Posted by Jason P. Wapiennik on October 28, 2014

Sometimes importing counterfeit goods lands you in a lot more trouble than just paying a customs penalty (1x or 2x the MSRP of the counterfeits as if they were genuine). In some cases, the importers of counterfeits end up facing criminal charges, fines and imprisonment. In this news release (HERE) from Immigration and Customs Enforcement (ICE) the importer was importing counterfeit Beats by Dre headphones into the United States and having them shipped to different addresses in his area.

What is interesting about this story is how quickly he was arrested — his (illegal) business was only in operation about 8 months. I hear from many people who believe that small quantities or importations for a short period of time of counterfeits might not get them in much trouble. This case stands against that proposition. Here’s some details from the story:

A Vietnamese national legally residing in Houston was arrested Friday on charges of conspiracy and trafficking in counterfeit goods, announced U.S. Attorney Kenneth Magidson, Southern District of Texas.

The indictment alleges [the defendant] was the CEO of NPC Enterprises, and that he allegedly conspired to traffic in counterfeit Beats products from June 2013 through February 2014. Chen allegedly imported counterfeit Beats products from China and Honk Kong to numerous addresses in the Houston area. The indictment alleges he then took these products to a location on Afton Street, which he used as his warehouse and distributing center.

The total value of counterfeit products alleged in the indictment exceeds $560,000.If convicted, Chen faces up to 10 years in federal prison and a possible $2 million fine.

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: