CBP officers at an El Paso port of entry seized 39 Michael Kors purses from an international shipment arriving from Hong Kong — part of a routine inspection that escalated into a formal intellectual property enforcement action. The seized handbags had an estimated value of $12,285. We have previously written about importing gray market goods and counterfeit import seizures and penalties — this case illustrates how the enforcement process works from inspection to penalty.
In January, 39 Michael Kors purses suspected of being counterfeit were seized at an El Paso port of entry. The purses were part of an international shipment from Hong Kong that was selected for inspection. Officers who were examining the shipment identified the suspect bags and they were turned over to members of the CBP Intellectual Property Branch for further review. The purses were found to be of poor quality compared to what the brand was known for despite having nearly identical markings. A notice of seizure was given to the consignee of the shipment on March 10. The value of the seized handbags was estimated at $12,285.
How CBP Identifies Counterfeit Merchandise
This case followed a process that CBP uses routinely for suspected counterfeit goods. When a shipment is selected for examination and officers identify merchandise bearing well-known trademarks, the shipment is referred to CBP’s Intellectual Property Rights Branch for specialist review. IPR specialists compare the merchandise against reference samples and quality standards for the genuine brand — examining stitching, hardware, materials, labels, and overall construction. In this case, the purses were identified as counterfeit based on poor quality relative to genuine Michael Kors products, despite bearing nearly identical markings.
CBP has recorded thousands of trademarks in its IPR enforcement database — including virtually every major luxury and consumer brand. Import specialists are specifically trained to flag shipments bearing those marks, and the IPR Branch has the expertise to distinguish genuine merchandise from counterfeits. The sophistication of the counterfeit does not provide a defense; even high-quality fakes are subject to seizure and forfeiture once CBP or the trademark holder confirms they are not genuine.
What Happens After the Seizure
The consignee received a notice of seizure on March 10. From that point, the clock starts running on their options. Counterfeit merchandise — once confirmed by the trademark holder — is almost always forfeited and destroyed. There is no petition process that results in the release of confirmed counterfeit goods back to the importer. The merchandise is gone.
But the seizure and forfeiture of the merchandise is not the end of the matter. This is what most importers do not anticipate.
The Penalty Notice That Comes After the Forfeiture
Once the forfeiture of counterfeit merchandise is complete, CBP has independent authority to assess a civil monetary penalty against the importer under 19 U.S.C. § 1526. The penalty for a first violation is the domestic value of the merchandise — meaning the value of what the goods would be worth if they were genuine, not the price the importer paid for the counterfeits. In this case, that minimum penalty is $12,285 — the MSRP equivalent of 39 authentic Michael Kors handbags.
That penalty arrives by mail — weeks or months after the merchandise was seized and forfeited — and it catches many importers completely off guard. They believed the matter was closed when the merchandise was taken. It was not. The forfeiture resolved the property; the penalty addresses the legal violation itself, and those are two separate proceedings.
For repeat violations, the penalty exposure increases further. And beyond CBP’s enforcement, the trademark holder retains independent civil remedies — a federal lawsuit for trademark infringement with potential statutory damages, injunctions, and attorney’s fees that can significantly exceed the CBP penalty.
Can the Penalty Be Reduced?
Yes — and in many cases it can be reduced substantially. When you receive a notice of penalty from CBP’s Fines, Penalties and Forfeitures office, you have the right to file a petition for mitigation asking CBP to reduce the penalty based on mitigating factors. CBP’s penalty mitigation guidelines for trademark violations consider factors including whether the violation was knowing or inadvertent, the importer’s prior compliance history, the degree of cooperation with CBP, and whether corrective steps have been taken.
Great Lakes Customs Law has a strong track record in getting these penalties reduced — and in appropriate cases, eliminated entirely. See our penalty and liquidated damages case outcomes for examples of what successful petition work looks like in practice.
What Happens If You Don’t Pay
Ignoring a CBP penalty notice is not a safe option. If the penalty goes unpaid and no petition is filed, CBP can refer the debt to the Department of Justice for collection litigation in federal district court. Once a judgment is entered, the government has the full range of collection tools available: liens on real property, bank account garnishment, and seizure of assets. A $12,000 penalty that seemed manageable becomes significantly more complicated — and more expensive — once it is a federal judgment with interest and collection costs added on.
Contact Us About Your Customs Seizure or Penalty
If CBP has seized your merchandise on counterfeit or trademark grounds, or if you have received a notice of penalty related to an import violation, contact us as soon as possible. The deadlines for responding to penalty notices are real, and early action gives you the best chance of achieving a favorable outcome. Call us at (734) 855-4999, send a text message, or reach us on WhatsApp. You can also contact us online. We handle customs seizure petitions and penalty defense nationwide.