Tag: CBP

Commentary on CBP money seizures in Philly

There is an interesting news release from CBP about some money seizures in Philadelphia that goes beyond the usual “facts-only” narrative style and  standard statements about the role of CBP in a typical CBP news release. I find it so interesting, in fact, that I am quoting it in full and providing my own commentary in red below:

Philadelphia — International travelers who arrive or depart the United States in possession of more than $10,000 are required to report all currency to Customs and Border Protection (CBP) officers and complete a Treasury Department Financial Crimes Enforcement Network (FinCEN) form. Those who deliberately refuse to comply with this federal currency reporting requirement face hefty consequences, from mitigated penalties to having their currency seized.

This is not quite right, because there are others who  “face hefty consequences” apart from those who “deliberately refuse to comply.” This includes people who are ignorant or misinformed about the monetary instrument reporting requirements, people who do not know how much money they are carrying — which could be because they did not count it or forgot it was in a pocket on a suitcase from a prior trip, or people who do not know they are over the limit because they are carrying foreign currency and do not know the exchange rate.

My point: deliberate refusal is just one way to get your money seized. It is definitely not the only way to get money seized, which is what Customs says in this news release. The reporting requirement law is written so that even unknowing violations are still violations. So accidents or other non-deliberate acts can, and often will, result in a seizure of money by Customs.

For example, I know many of my clients are unaware of the reporting requirement.  Others are aware of it but have a vague understanding of what it means for them, what is included as a monetary instrument, and how it is to be reported. Others know of the reporting requirement but think it does not apply in their situation. Finally, there are those who know it applies to them and they intend to make the report. But, when confronted by a uniformed Customs official they are intimidated, panic stricken, or their words are misconstrued. Then the official takes their nervous response for a “deliberate refusal” and tells them to be quiet while they search their bags. They are not given a further opportunity to to file a report or even make a verbal report. 

Other times Customs officers will ask a question like: “How much money do you have on you?” or “How much money is in your wallet?” This question will trigger a truthful response like “a few thousand.” The problem with this scenario is that there may be only a few thousand in their wallet or on their person, but there is a bag in the trunk of their car or two fat envelopes in their checked baggage that has $15,000 in it. So in this case Customs has asked the wrong question, the person has given the correct response, and they are most likely going to get their money seized.

Obviously, I take issue with a question like “How much money is in your wallet?” because the real question should be “How much money are you transporting?” Sure, if you are a confident person, not intimidated by uniformed officers, and know the reporting requirement like the back of your hand then you might say, “Well, I have $2,500 in my wallet, but in my wife’s baggage there are two envelopes with a total of $9,860 and I have a notebook in my carry-on luggage with another €5,000, too.” This is the correct response to any question about your money, but who would think to respond like that when all they ask about is your wallet?

So because the person does not give a full disclosure and only answers the question asked by Customs, they will be taken to an area where the person thinks they will have a chance to make a report about what the officer didn’t ask about, count the money, and make the report. Then the officers conduct a secondary examination, searching their vehicle or their baggage and find all the money that was not reported to Customs — and they seize it, after lengthy questioning where the person misses their connecting flight or whatever appointments they might have.

Now here is the problem: The question about what is in their wallet is unfair if asked to try to elicit a violation of the reporting requirement. Yes, other questions are more fair, and more accurate. However, Customs does not have to ask anything at all. Knowing about the reporting requirement and making the report is entirely up to the person who is transporting the money. So even if Customs asks the trick wallet question, or they say nothing at all, you still have to file a report and file it correctly. My problem with trick  questions is that it seems  designed to elicit a violation rather than achieve compliance.

The story continues…

A Russian man learned that lesson the hard way after CBP officers seized $34,500 from him Thursday afternoon at Philadelphia International Airport. During a secondary examination, the Russian man claimed verbally and in writing that he possessed $9,000; however, CBP officers counted $35,000. CBP officers released $500 to the man for humanitarian relief and provided him directions on how to petition the U.S. government for the remaining currency.

This is just the standard petition process, but you also have other options. Usually the petition advice is not received until given the notice of seizure, which can come days, weeks, or even months after the money seizure occurs. The length of times varies on the investigation, case load, and size of the port.

CBP officers assessed a mitigated $1,000 penalty to another Russian man who arrived on the same flight. That man also reported possessing only $9,000; however CBP officers discovered a stack of bills in his baggage. All currency equaled $18,800.

Well, good for this man who got his money back on the scene – usually any mis-report by 5% or more will not be returned on the scene; however, if the total amount is $25,000 or less and no further investigation into the incident is deemed warranted and the traveler has documentation showing legitimate source and legitimate intended use and there is no nexus to criminal activity, then the money can be returned.

“Customs and Border Protection officers offer travelers multiple opportunities to truthfully report their currency, but those who refuse to comply with federal currency reporting requirements face severe consequences, such as hefty penalties, or having their currency seized, or potential criminal charges,” said Allan Martocci, CBP port director for the area port of Philadelphia. “The easiest way to keep your currency is to truthfully report it.”

I know that this is sometimes true, but I am also sure that this is not always true. I know many clients had  opportunities to report transporting more than $10,000 in money but there are many have also been subjected to “zealous enforcement” and asked trick questions without sufficient opportunity to make, or amend, a report.  Sometimes the philosophy of some Customs officers is to “seize first, ask questions later.”

My clients also report intimidating behavior while they are being detained, like back-slapping, laughter, high-fiving among officers about their seizure prowess, unfounded threats of criminal prosecution, and Dirty Harry type comments like, “This ain’t your first time at the rodeo.”

It is also true, as this news release says, that the easiest way to keep your currency is to report it; but Customs can still theoretically seize your money if you have under $10,000 and they think you are “structuring” to avoid to have to file a report, or if you report over $10,000 but lack good documentation about the source and use of the funds, or if they believe it has some connection to criminal activity.

The story continues…

Philadelphia CBP recorded three additional currency reporting violations recently and one ended in the seizure of $17,516.

  • CBP issued a mitigated $500 penalty to an Israeli man April 18 who claimed that he possessed $10,000; however CBP officers discovered an additional $860 in his pockets.
  • CBP issued a mitigated $1,000 penalty to a Swiss mother and her Israeli son April 10 after CBP officers discovered $23,146 in U.S. dollars, Swiss francs and Israeli shekels. The pair, who arrived from Switzerland, reported possessing a combined $10,100 U.S. dollars and 7,700 Swiss francs. CBP officers discovered multiple bundles of currency during a baggage examination and inside a travel pillow. [See, this type of discovery makes Customs suspicious — but if you are traveling internationally it makes perfect sense to keep the money in different locations in your personal effects so that if lost or stolen, not all your money is lost or stolen. But, in this case the different locations probably resulted in a  a charge of failure to report and bulk cash smuggling.]
  • CBP issued a mitigated $1,000 penalty to a British man April 5 after CBP officers discovered that the man possessed $20,839 in U.S. dollars and British pounds. The man, who arrived from the United Kingdom, declared possessing only $9,000. CBP officers discovered several bundles of British pounds and two envelopes containing U.S. currency.
  • CBP seized $17,516 from a Nigerian woman who arrived March 29 after CBP officers discovered that she possessed $19,016. The woman claimed that she possessed $7,000; however CBP officers found more than $7,000 during an examination of the woman’s purse. CBP officers released $1,500 to the woman for humanitarian purposes and provided the woman directions to petition for the remaining currency.
  • In each case involving mitigated penalties, CBP officers required the travelers to complete a FinCEN form.

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.

In addition to narcotics interdiction, CBP routinely conducts inspection operations on arriving and departing international flights and intercepts currency, weapons, prohibited agriculture products or other illicit items.

So there you have it. 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.

 

Bulk Cash Smuggling; Customs Currency Seizure

Arizona news is reporting that a Mexican national was caught trying to smuggle $90,000 in U.S. currency. The individual transporting the currency is being held for bulk cash smuggling charges.  The article has some interested pictures of the actual cash and its location. Apparently drug-sniffing dogs detected the presence of drugs in the vehicle (likely traces on the currency), which tipped them off the presence of the currency.

Legitimate source? Legitimate intended use? You be the judge!

You can read more about what constitutes bulk cash smuggling offense by clicking HERE. If you have had your cash seized by Customs you might find our article on responding to a U.S. Customs money/currency seizure helpful (click HERE to read it). You can also contact our office and speak to a customs attorney by call (734) 855-4999, or by clicking HERE.

U.S. Customs money seizure in Maine

The Bangor Daily News out of Maine reports on some noteworthy monetary instruments seizures in 2012 by U.S. Customs, including this one:

In one incident the agency highlighted, two Houlton Border Patrol agents seized $89,808 in U.S. currency, $10,440 in Western Union traveler’s checks and $200 in Canadian currency from two men from Canada.

The money was apparently was connected with:

. . . a telephone fraud scheme that preyed on the elderly. The scam involved the subjects advising the elderly of a grandchild or other relative desperately in need of money, and instructing them to wire funds. The victims were subsequently bilked out of hundreds of thousands of dollars. US Canada Border Marker

[  . . . ] The $100,448 initially seized by Border Patrol agents was returned to 18 of the victims.

No mention of the exact legal basis under which the money was seized, or exactly how this fraud scheme became unraveled at the border. I suspect somebody was trying to smuggling the money of the country to evade detection, and taxes, when CBP made the discovery and began putting the puzzle pieces back together.

If you have had currency seized from Customs, do not go it alone. Get the advice of an attorney who knows what he is doing. If you do not, you might only make the situation worse by handling it on your own or hiring an inexperienced lawyer. You worked hard for your money, so be sure to protect it. If you have questions, please give us a call.

To further inform yourself, please read the various articles I have written on this and related topics. But do not let it replace the advice of attorney who is familiar with the law and your particular circumstances.

Trademark Infringement: Importing Gray Market Goods and Seizure by Customs

Importers purchasing products from abroad may find that they bought more than they bargained for if the merchandise bears a trademark or trade name.  For the protection of registered U.S. trademarks and trade names U.S. Customs and Border Protection (“CBP” or “Customs”) limits the admissibility of foreign trademarks or trade names ((Sometimes collectively called “marks” here)) if they appear virtually identical to those already registered in the US. Ultimately, Customs may seize and forfeit imported gray market goods and impose fines and penalties on the importer. 19 CFR 133.23.

Gray Market Goods Defined

Gray market goods are articles manufactured abroad that bear either a genuine trademark or trade name that is either identical to, or substantially indistinguishable from, a trademark or trade name owned and recorded by a United States citizen or corporation. 19 CFR 133.23(a). The concept can be a bit confusing, but key to understanding is to remember that gray market goods bear a legitimate trademark or trade name but are imported into the U.S. without the consent of the owner of the U.S. trademark.  In other words, when a trademark or trade name has been applied to merchandise for use in a foreign country but are imported into the United States, then the goods bearing that trade mark or trade name are considered gray market goods.

Container Ship

The term gray market goods is used to distinguish them from goods that might be sold on black market; gray market goods are sold through legal but unauthorized or unintended channels of commerce. Gray market goods are different from counterfeit goods by the genuineness of their trade mark or trade name; counterfeit goods carry a trademark or trade name which the law calls “spurious.” Sometimes used or refurbished goods fall in the category of gray market goods, and particular laws apply to their lawful importation.

Restricted Entry for Certain Gray Market Goods

Trademarks  and trade names of U.S. owners are entitled to protection against imports of gray market goods under two conditions.  First, the U.S. owner must register its mark with CBP through the Intellectual Property Rights e-Recordation (IPRR) system. Second, the U.S. trademark and the foreign trademark must be owned by two different people or companies ((Furthermore, the companies cannot subject to common ownership or common control — such as parent companies and subsidiaries, etc.)).  The satisfaction of these conditions subjects all incoming gray market goods to “restricted” scrutiny, and Customs identifies them as such in its IPRR database; if the conditions  have not been satisfied, the goods are deemed non-restricted.

CBP will almost invariably detain restricted gray market goods for up to 30 days; and what transpires within that time will ultimately determine their seizure and eventual forfeiture or their release. 19 CFR §§ 133.23, 133.25.

Due to a counterfeit’s total lack of authenticity, the statutory penalties for attempting to import a good bearing counterfeit mark are more severe than those for attempting to import an infringing gray good. For the most part, however, the procedures for determining whether an allegedly counterfeit mark should be released or seized do not differ from those of gray goods, set forth below. 19 CFR 133.21.

The Road to Release

When a gray good is detained, the importer bears the burden of establishing that its mark fits one of the exceptions, such as showing that the foreign trademark or trade name was applied under the authority of the foreign owner who is the same as the U.S. owner; or, the foreign and domestic goods on which the marks or names are  identical physically and materially. The rationale of this difference-demanding exception may seem counterintuitive; however, the objective of grayRoadmarket rules is to prevent an influx of products which will cause customer confusion. If the marks or names of the products are nearly identical, as is always the case with gray market goods, their physical or material components must also be so similar that the average buyer in the marketplace is not likely to be confused as to the source of the products. 19 CFR 133.23(d). Showing the the imported goods qualify for one these exceptions allows Customs to release them.

A key to successfully challenging detention is requesting a sample of seized or detained merchandise suspected, or alleged, to bear a counterfeit or infringing trademark.

The Road to Seizure

Although this article does not deal with counterfeits directly, it is worthy mentioning that harsher penalties await counterfeit items. CBP has the authorization to obliterate the counterfeit mark or name and destroy the goods if there is no safe way to recycle them. 19 CFR 133.21. CBP may also impose fines on individuals who aid or direct the importation of goods bearing a counterfeit mark or name with the intent of public distribution. The first fine will not be more than the amount the goods would have had if they were genuine. For the second and every subsequent seizure, the fine will not exceed twice that amount. 19 CFR 133.27.

Bearing in mind the goals of preventing customer confusion and ensuring imported are products safe, CBP is authorized to take certain steps to ensure that infringing goods never reach the channels of commerce. An importer’s failure show the applicability of the foregoing exceptions within the 30 day detention period will trigger seizure and forfeiture proceedings. 19 CFR 133.23(f). Additionally, within the 30 day window, CBP may alert the U.S. owner of the presence of the gray goods to obtain assistance in determining whether the gray goods infringe upon the trademark or trade name of the U.S. owner. The U.S. owner may then procure a sample of the imported goods for a more detailed examination. 19 CFR 133.25. If CBP, aided by the efforts of the U.S. owner, finds that the gray goods infringe upon the trademark or trade name of the U.S. owner, it may seize the goods and commence with forfeiture proceedings. 19 CFR 133.23(f).

Still Hope

In the event of seizure and forfeiture, the importer retains its rights to contest the seizure and forfeiture, including the right to samples of seized merchandise and to petition Customs for relief from the forfeiture. Petitions for Relief and/or lawsuits in the federal district court’s can raise important issues and challenge the basis for seizure by, among other issues, contesting whether the goods are, in fact, gray market goods, whether they differ in quality, whether there is likelihood of confusion, the legitimacy of the source, the authority under which the trademark was applied, and others.

If your goods have been seized or forfeited, or if you are are importing goods bearing a trademark or trade name which is similar to one already registered in the U.S., it is in your best interest to obtain the advice of an attorney with experience in Customs laws and the laws surrounding intellectual property. As you can see, the process of clearing an item through the border can be a nuanced process in which time constraints and complex factual questions play a critical role.

Feel free to use this article to supplement your own knowledge, but do not let it serve as a substitute for legal counsel familiar with the various restrictions and exceptions of the law. Please do not hesitate to contact our office to assist you in taking the next step.

U.S. Customs currency seizures at the ports

As should be expected because of the shared border with Mexico, Laredo news has reports of two other 

Money black hole

significantly large currency seizures; one from another Chicagoan who was found to be transporting $214,925 in unreported currency in her vehicle and, more interestingly, and a 21 year old  Washingtonian who was transporting $115,594 in currency hidden in seven bundles underneath her clothing.

Both seizures occurred the same day and at the same location. As before, the Laredo news does a decent job of getting the law on this topic right, which I have explained before here by noting that you can petition for the return of the currency and that the person transporting the unreported currency is subject to arrest for criminal violations.

That brings me to the next point:

If you have had currency seized from CBP it is a serious matter – the law is complex, and any mistake can cost you dearly. Please give us a call and we will provide you with a free telephone consultation. To further inform yourself, you can also read the various articles we have written on this and related topics.

Getting back money seized by U.S. Customs when overseas

In the Legal Roadmap of a Customs Money Seizure series of articles we published, we explain how Money going down the drain U.S. Customs may seize your cash (currency, whether U.S. or foreign), and any monetary instruments for failing to report transportation of more than $10,000 when entering or leaving the country, for bulk cash smuggling, and/or illegal currency structuring.

That means if you are flying into the U.S. or leaving the U.S. from an airport or land border crossing and you are transporting more than $10,000, do not file a report, have concealed they money, or have divided the cash with others, U.S. Customs (CBP) may seize your money on-site, at the airport or border crossing.

A cash seizure while traveling is problematic because you will not be at your normal residence (or in your own country) for a period of time and you might not receive the CAFRA notice of seizure. The legal problem is that, as we explained in responding to a cash seizure, you might not receive the notice of seizure (because it’s lost or there’s no one to sign for it), or receive it too late.

A cash seizure when traveling overseas also creates problems even if you do receive the notice, because without representation, you will have to burden your friends or relatives with the lengthy and detailed process for getting your seized currency back from U.S. Customs, or because you will have to get them involved in your private and financial affairs.

But after hiring Great Lakes Customs Law as your customers lawyer, we can obtain the CAFRA notice of seizure on your behalf, and usually get it issued more quickly than normal. If we represent you, we make the process as seamless and simple as possible for you. By hiring Great Lakes Customs Law immediately after seizure, U.S. Customs will send the CAFRA seizure notice direct to our offices.

We then prepare the necessary petition with your cooperation and file it with Customs for you without your direct involvement. If you choose, we can directly receive the money in the form of a paper check, or via direct deposit into a bank account. If desirable, this returned seized money can then be wiredto your overseas bank account, which is something that Customs will not do.

We at Great Lakes Customs Law can represent you while you are staying overseas and you will not have to bear the additional burden and expense of making a return trip to the United States to gather evidence, submit your petition, or receive your money.

If you have had cash seized by customs please read our Legal Roadmap of a Customs Money Seizure and click the button at the top of this page to us or e-mail us to schedule you free currency seizure consultation.

 

 

Responding to a Customs currency seizure

If you have had cash seized by customs and are contemplating what to do next, please inform yourself on the process by reading this article and then contact 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.

What documents should I have gotten and what will I get?

At the time of a currency seizure, Customs probably gave you a “Custody Receipt for Seized Property and Evidence” form (6051S), which will have some different numbers at the top, including an FPF No. so that your case can be tracked at Fines, Penalties and Forfeitures office (“FP&F”) of Customs. This form should show what exactly was seized, the name of the seizing officer, and Customs’ contact information — usually for the local FP&F branch of Customs. FP&F should then send by certified mail a formal written notice of seizure (“CAFRA Seizure Notice” or “CAFRA Notice”). You should get it within a few days as long as Customs has your correct address, which they may have asked for during your initial detention at the border or port. You will have 30 days from the date on the letter (not the date the letter is received) to respond.
10kWe do not recommend contacting Customs by yourself until you have at least spoken to an attorney. Any statements you make to Customs, whether while you are being detained or by telephone, can be used against you. You may be panicked and say something that is misinterpreted by Customs as an admission of wrongdoing, or might make them suspect you are involved in something illegal. That will make it harder to get your money back. Therefore, we recommend contacting an attorney with experience in customs seizures immediately after receiving the CAFRA Notice. In any event, if you have not received this notice within 7 days of the seizure you should contact an attorney so they can request a copy of the notice of seizure for you, make sure that a timely response is made, or an extension of time to respond is requested and granted. This will help you make sure you preserve all your rights and options and improves your chances of  successfully getting all or most of your money back.

CAFRA Notice of Seizure & Election of Proceedings

CAFRA stands for “Civil Asset Forfeiture Reform Act” and is, in our practice, the law that most of my client’s currency seizures fall under. After you’ve been detained and released, the CAFRA Notice you receive will have a basic explanation of the facts surrounding the seizure, including: the date and place of seizure, surrounding circumstances, and the facts Customs’ alleges are the basis for the seizure. The CAFRA Notice is a formal document, and should be treated and responded to as such. How and when you respond to the CAFRA Seizure Notice will determine the outcome of your currency seizure case!

What are my options for getting my seized currency back from customs?

The CAFRA Notice will also cite the applicable laws, including failure to report, bulk cash smuggling, or a currency structuring violation to evade the reporting requirement, among others. It will also list your options to respond to the CAFRA Notice, which include:

  • Filing a Petition for Remission or Mitigation (including the right to file a Supplemental Petition after decision on the first Petition)
  • Pay the Full, Appraised Domestic Value of Seized Property
  • File an Offer in Compromise
  • Abandon the Property
  • Institute Judicial Proceedings
  • Do Nothing

The details of these options are explained in the CAFRA Notice, and Customs will include and ask you to complete and return what is called an “Election of Proceedings” form. This form will require you to select one of the above options. The advice we give to our currency seizure clients varies with the circumstances of each seizure case. Do not decide how to respond to a CAFRA Notice without first consulting an attorney. There may be times when a Judicial Proceedings make more sense than filing a Petition, and a qualified attorney can help you weigh those options and make that decision. Any mistake or error in judgment you make can cost you dearly. The majority of the time, however, I do recommend my client’s to file a Petition for Remission or Mitigation as the best option. The Petition, when filed by our office, is a legal memorandum that contains detailed factual narrative with our client’s side of the story, what led to the seizure, a review of the relevant law, regulations and Custom’s own guidelines concerning the seizure. When the facts allow for it, my Petition will always include a strong argument for return of the money in full, or even when there is a valid basis for the currency seizure, a strong argument for the money to be returned upon payment of a fine in the smallest amount of money possible, rather than forfeiture of all your money.

How can I find out more or hire a law firm to help with my customs currency seizure?

If you have had cash seized by customs and are contemplating what to do next, please make use of the other information available on this website or 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. Please read these other articles:

  1. Seizure of currency and monetary instruments by U.S. Customs
  2. Seizure for bulk cash smuggling into or out of the U.S.
  3. Structuring currency imports and exports
  4. Is it $10,000 per person?  Under what circumstances is filing a report with Customs for transporting more than $10,000 required?
  5. Criminal & civil penalties for failing to report monetary instrument transportation
  6. Is only cash currency subject to seizure by Customs?
  7. Responding to a Customs currency seizure
  8. How do I get my seized money back?
  9. Getting money seized by U.S. Customs back while staying overseas
  10. How long does it take Customs to decide a petition for a currency/monetary instrument seizure?

Customs’ seizes T-Rex skull in Jackson, Wyoming as part of ongoing investigation

According to this news report, and this one, Customs in Jackson, Wyoming, exercised a federal warrant to seize the skull of a Tarbosaurus from someone’s home. The story draws a parallel to another recent news item about the importation of dinosaur bones:

Federal officials recently seized a nearly complete Tarbosaurus skeleton that was sold at auction and arrested a Florida man for illegally importing dinosaur fossils.

A U.S. attorney for the president of Mongolia says that country welcomes the increased awareness for the illegal trade of Mongolian fossils.

Local 8 news.

According to the limited information in the News & Guide article, the fossil was seized for  failure to provide proper documentation that the export was done in compliance with the law.

That article also references a similar case involving a dinosaur skeleton in New York and Florida, and I would also draw the reader’s attention to the story I blogged about a few months ago in Detroit where seized fossils went unclaimed and were thereafter donated to the University of Michigan.

Maybe instead of devoting so much of my blogging lately to avoid having your currency seized I need to start focusing on avoiding having your fossils seized…

Structuring currency imports and exports

The law concerning reporting transportation of more than $10,000 in currency and/or monetary instruments coming into or out of the United States is clear; any amount more than $10,000 must be reported. So what about two or more of transactions of $10,000 or less?

It is illegal to structure an importation or exportation in order to avoid filing the required report under 31 USC § 5324(c)(3). For example, if a person wanted to transport $25,000 from the U.S. to Brazil, it is illegal to divide the money into smaller sums and export those smaller sums on the same or different occasions to avoid filing a report. It does not matter if the money is divided and given to a  person on the same flight (or same car, bus, boat, etc.), or if it’s done days, weeks, months, or years apart if done to avoid having to file a report — structuring the transaction to avoid filing the report is illegal and carries serious civil and/or criminal consequences. It does not matter if you have other reasons for structuring the transaction, so long as one of those reasons to is to avoid having to file a report your structuring of the transaction is illegal.

On the other hand, dividing the money for any reason other than evading the reporting requirement is legal. However, my typical cautionary disclaimer applies: you still have to prove it and convince Customs that your intent was not to avoid filing a report, and hope that your evidence is strong enough to get your money back (remember, Customs will have seized it pursuant to 31 USC § 5317).

If you have had cash seized by customs and are contemplating what to do next, please make use of the other information available on this website or 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.

Please read these other articles:

  1. Seizure of currency and monetary instruments by U.S. Customs
  2. Seizure for bulk cash smuggling into or out of the U.S.
  3. Structuring currency imports and exports
  4. Is it $10,000 per person?  Under what circumstances is filing a report with Customs for transporting more than $10,000 required?
  5. Criminal & civil penalties for failing to report monetary instrument transportation
  6. Is only cash currency subject to seizure by Customs?
  7. Responding to a Customs currency seizure
  8. How do I get my seized money back?
  9. Getting money seized by U.S. Customs back while staying overseas
  10. How long does it take Customs to decide a petition for a currency/monetary instrument seizure?

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

Many posts in this series have dealt with how and why Customs will seize currency and monetary instruments crossing the border for a violation of 31 USC 5316, which is a failure to report. Customs is also empowered to seize cash or its equivalent smuggled into or out of the United States under 31 USC 5332(c) in addition to seizure for failure to file a report.

At its core, the law against bulk cash smuggling prohibits (1) the concealment of currency or monetary instruments, with (2) an intention to evade the reporting requirement, during the (3) knowing transport, transfer, or attempted transport or transfer, of the currency or monetary instruments out of or into the U.S. 31 USC 5332(a)(1).

Concealment can be done on your person, including  in clothing, a conveyance (e.g., a vehicle), in luggage, in a backpack, with or in merchandise, or any other container, whether it is worn or carried by the person transporting, transferring, or attempting to transport or transfer the currency or monetary instruments. 31 USC 5332(a)(2).

This law allows Customs to seize and forfeit through a civil proceeding “[a]ny property” including the container, conveyance, luggage or clothing, “involved in a violation . . . or a conspiracy to commit such violation, and any property traceable to such violation or conspiracy[.]” 31 USC 5332(c). This means that not only will Customs seizue the currency or monetary instruments, but in some cases also the luggage, backpack, merchandise, or conveyance in which it was concealed. The law also provides for penalties for a criminal conviction of not more than 5 years, among other sanctions. 31 USC 5332(b).

Each of the 3 elements above have a legal definition too detailed for an article this short, but suffice it to say that the terms “knowing” and “intentional” do not have the common, everyday definitions you might expect. If you are not a lawyer or don’t mind losing more than $10,000 do not try to be clever and figure it out.

If you have had cash seized by customs and are contemplating what to do next, please make use of the other information available on this website or 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.

Please read these other articles:

  1. Seizure of currency and monetary instruments by U.S. Customs
  2. Seizure for bulk cash smuggling into or out of the U.S.
  3. Structuring currency imports and exports
  4. Is it $10,000 per person?  Under what circumstances is filing a report with Customs for transporting more than $10,000 required?
  5. Criminal & civil penalties for failing to report monetary instrument transportation
  6. Is only cash currency subject to seizure by Customs?
  7. Responding to a Customs currency seizure
  8. How do I get my seized money back?
  9. Getting money seized by U.S. Customs back while staying overseas
  10. How long does it take Customs to decide a petition for a currency/monetary instrument seizure?