Tag: civil seizure

Tuition Money Seized by Customs

Customs seizure of tuition money is a common occurrence in the weeks prior to the start of either semester of the school year. Like all customs currency seizures, the seizure typically happens because of a failure to file a currency report by people transporting money into the United States of amounts over $10,000.

Lots of foreign students come to the United States and pay their tuition in cash as most colleges won’t accept tuition payments by credit card. Likewise, many foreign exchange students and children of immigrants get a lot of cash assistance from family overseas who understand their duty to pay for their children’s education; it may be a lump $15,000 sum from a parent or grandparent, or a few hundred or thousand dollars from several different relatives or benefactors.

Customs can easily identify someone on student visa, who is relatively young, and is arriving from China, India or Korea; we previously wrote about how customs can “target” currency reporting enforcement based on just these types of criteria. This makes it very easy for them to target students who will then be required to give an accurate report of currency down to the dollar, and if they don’t to seize their cash. The only thing higher than the cost of education is the cost of not accurately reporting money over $10,000 to customs.

What to do when Customs seizes your tuition money?

Traveling with cash? Claim monetary instruments exceeding $10,000 USD!
Don’t let customs seize cash. Traveling with cash? Claim monetary instruments exceeding $10,000 USD!

Take the advice we have already given for responding to a customs money seizure by reading our popular article on the topic: Responding to a Customs Currency Seizure. Currency seizure cases are handled the same whether the money that was seized by customs was intended to be used to pay for college tuition or, for example, for travel expenses. As long as the use of the money is legitimate (and tuition is a legitimate use) and the source of the money is legitimate, with the right legal help you have a good chance of getting your seized tuition money back. If you want to know what a petition to get seized money back from customs looks like, read our article here.

Will I get the money in time to pay my tuition?

It really depends on a variety of circumstances, as we talked about in our popular article on the topic: How long does it take Customs to decide a petition for a currency/monetary instrument seizure? In every case, hiring the right attorney to handle your case can speed up the process, from getting the notice of seizure issued, to gathering evidence (obtaining supporting documents, preparing affidavits and giving customs everything they need without waiting for them to request additional documents), researching and drafting the legal basis for the obtaining a return of the seized currency in the petition, and ultimately, if successful, getting the money returned without delay, often by direct deposit. We work hard at Great Lakes Customs Law to get your seized currency returned back to you in a timely manner by doing the job right the first time.

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 Detroit, Chicago, Atlanta, New York, Los Angeles, Orlando and many other places. 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?

US CBP Seizes $10.6M Cash in Caribbean in FY 2014

Last year, U.S. Customs & Border Protection — CBP — in Puerto Rico and the U.S. Virgin Islands seized $10.6 million dollars in unreported currency, smuggled bulk cash, or unlawful currency structuring violations. Last year I called that an overwhelming amount of seized currency.

Most of these customs currency seizures occur at airports, ferry crossings, etc. CBP for Puerto Rico and the U.S. Virgin Islands reported their annual fiscal year statistics for 2014 and this currency seizure number has more than doubled. That is more than overwhelming, it is tremendous… the story also compares currency seizures with those in California, Texas, New Mexico, and Arizona. All areas in which drug smuggling is pervasive.

In Puerto Rico and the U.S. Virgin Islands, CBP officers and agents seized over 51,043 pounds of narcotics with an estimated street value of approximately 650 million and seized approximately $10.6 million in unreported currency in FY 2014, which runs from October 1, 2013 to September 30, 2014.

But later the story says:

Furthermore, $8.4 million of currency interdictions were reported and over 80 firearms were seized.

$8.4M or $10.6M? Who’s counting over there?! And this is the same government that seizes currency for any mis-report who can’t get their facts straight for their news releases.

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?
  11. Statute of Limitations for Currency Reporting Violations
  12. Filing a Petition for Seized Currency (with Sample and Tips) with CBP

U.S. Customs Seizes $17k Cash at Dulles Airport

U.S. Customs and Border Protection (CBP) seized more than $17,000 from a woman returned to the United States from the United Arab Emirates last week at at Washington Dulles International Airport. She only declared $9,000 but was in possession of more than $17,000, making all of the money subject to seizure. The original here, excerpt below:

The woman arrived on a flight from the United Arab Emirates and stated she was in possession of $9,000. She was referred for a secondary inspection where she Cash Seizure by Customsrepeatedly declared possessing $9,000. During a baggage examination, a CBP officer found a total of $17,575. CBP officers seized the $17,575, returning $1,000 to the traveler for humanitarian relief, and advised her how to petition for the return of the rest of the currency. [Note: read our tips and see a sample petition for remission here)

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 Dulles. “The traveler was given the opportunity to truthfully report her currency. The easiest way to hold on to your money is to report it.”

The Privacy Act prohibits releasing the traveler’s name since she was not criminally charged.

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?
  11. Statute of Limitations for Currency Reporting Violations
  12. Filing a Petition for Seized Currency (with Sample and Tips) with CBP

Cross Border Customs Cash Seizure Nets $39k

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 cbp cash seizureMexican 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:

  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. How do I get my seized money back from customs?
  8. Getting money seized by U.S. Customs back while staying overseas
  9. How long does it take Customs to decide a petition for a currency/monetary instrument seizure?
  10. Targeted Enforcement for Customs Money Seizures
  11. Statute of Limitations for Currency Reporting Violations

Dulles Airport Money Seizure by Customs of $43,015

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 dulles airport money seizure: keep calm and declare over $10,000U.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.

 

Statute of Limitations for Currency Reporting Violations

This is an article about the statute of limitations for currency reporting violations (failure to report monetary instruments over $10,000, bulk cash smuggling, and structuring); in other words, how soon after an offense is committed (or when the currency is seized) that the government must bring criminal charges against you before they are prevented by the statute of limitations. If you want to skip to that part and don’t want to learn some fascinating facts about the most intact T-Rex skeleton ever found, and how one of its discoverers was pursued by the government for allegedly failing to report a currency and monetary instruments over $10,000, scroll down to the next heading.

Currency Reporting Violations and Sue the Dinosaur

Like a lot of grown men, I was fascinated with dinosaurs as a kid. So those kind of headlines still catch my eye. The other day I came across this CNN story — a saga really — about the discovery of the “most intact T-rex skeleton ever found” back in 1990 (“Sue“). To sum things up, shortly after the fossil was discovered FBI agents, accompanied by the national guard, seized the fossil because it was, they alleged, on Indian Trust land (read: under Federal government jurisdiction). The

Sue the Dinosaur

ownership of the dinosaur, and allegations that the people involved with the discovery had stolen and sold dinosaur fossils found on public land, were in the courts for years.

But as I read the story, I was intrigued to read that one of the people responsible for the discovery of the dinosaur “served 18 months in federal prison for customs violations” unrelated to the dinosaur discovery. I thought it must have had something to do with the importation of dinosaur fossils like happened in Detroit a few years ago, which I blogged about. But not so. Looking into the matter further, I discovered this 1996 article from the New York Times that explains the customs violations were for failing to report the transport of more than $10,000 into or out of the United States:

…Mr. Larsen was convicted of two felonies — failure to report to American customs officials $31,700 in travelers checks he had brought from Japan, and failure to report $15,000 in cash he took to Peru.

Oops! The story basically says that, of 153 charges in a 39 count indictment brought against him by the Federal government, these currency reporting violations and some misdemeanors related to the sale of fossils valued at less than $100 is what stuck. In the context of the fiasco about the dinsoaur bones, winding up getting criminally charged with failure to report currency being transported in excess of $10,000 seems kind of ridiculous, doesn’t it?

What’s the statute of limitations of currency reporting violations?

This story was just the occasion for me write about the statute of limitations for currency reporting violations (failure to report, bulk cash smuggling, and unlawful structuring that often result in currency seizures). The statute of limitations for currency reporting violations under 31 USC §§ 5316, 5324 and 5332 is found in 18 USC § 3282(a), which states:

Except as otherwise expressly provided by law, no person shall be prosecuted, tried, or punished for any offense, not capital, unless the indictment is found or the information is instituted within five years next after such offense shall have been committed.

That means once the event giving rise to the violation has occurred, the government has 5 years from that date to bring criminal charges against you.

My customs currency seizure clients often want to know: is failing to report currency a crime? Yes, it is, and it is punishable by a fine of $250,000 to $500,000 and 5 to 10 years in jail. But I also tell them that if they were not arrested at the time the currency was seized, and the U.S. Attorney was notified and declined to prosecute you, they probably will not face criminal charges.

But just because you weren’t arrested and charged immediately still means it could happen up to 5 years later.

Keep Calm and Declare Monetary Instruments Exceeding $10,000 USD

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?

 

CBP Confiscates $82K From International Traveler

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 CBP Money SeizureU.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.

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 on customs moneys eizures:

  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. How do I get my seized money back from customs?
  8. Getting money seized by U.S. Customs back while staying overseas
  9. How long does it take Customs to decide a petition for a currency/monetary instrument seizure?
  10. Targeted Enforcement for Customs Money Seizures

 

U.S. Customs Seizes Bulk Cash from 23 y/o US Citizen

In a currency seizure reported by U.S. Customs, customs seized over $250k 23 year old man headed into Mexico. No mention of an arrest, but just an ongoing investigation. This seizure is probably based on both bulk cash smuggling and failure to report. Both carry criminal consequences. Customs also gets the law wrong, as we explained below, which is a great reason to hire a lawyer for your customs money seizure case. Let’s have a look at the always-interesting-facts in this currency seizure story to see what the person did wrong that caused this encounter to end up as another customs airport money seizure:

U.S. Customs and Border Protection officers conducting outbound enforcement operations at the Brownsville Port of Entry seized $259,750 in bulk U.S. currency. [ . . . ] Stacks of varying denominations totaling $259,750 in cash seized by customsundeclared currency seized by CBP officers and agents recently at Brownsville Port of Entry.

On Nov. 24, CBP officers working outbound enforcement operations at the Gateway International Bridge came in contact with a silver 2007 Volkswagen Jetta as it attempted to exit the United States and enter Mexico. The driver, a 23-year-old United States citizen from Brownsville, Texas was referred to secondary for further inspection. In secondary, a search of the Jetta resulted in the discovery of two packages of bulk U.S. currency hidden within the vehicle. CBP officers seized the currency the vehicle and the case had been referred to Homeland Security Investigations (HSI) special agents 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.

If this guy could prove the money came from a legitimate source and had a legitimate intended use, then this customs cash seizure was completely avoidable. Near the bottom of this story customs states that the law requires that a person file a formal report of “$10,000 or higher” into or out of the United States. That is incorrect. The law requires reports of more than $10,000. If even customs doesn’t know the law, you are better of hiring an attorney.

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 (you can read our popular page on Responding to a Customs Money Seizure HERE).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 customs currency seizures:

  1. Seizure of currency and monetary instruments by U.S. CustomsKeep Calm and Declare Monetary Instruments Exceeding $10,000 USD
  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. How do I get my seized money back from customs?
  8. Getting money seized by U.S. Customs back while staying overseas
  9. How long does it take Customs to decide a petition for a currency/monetary instrument seizure?
  10. Targeted Enforcement for Customs Money Seizures

CBP Seizes Counterfeit Kids’ Bracelets

Below is a Customs seizure story about fake monster tail bracelets recently seized as counterfeits. In the story, Customs states that fake products, often toys, can contain harmful substances like “lead or phthalates”. While that may be true, Customs only states that generally and does say if these products contain harmful substances. It seems unlikely, but stranger things have happened. In my opinon, by explaining that counterfeits can contain harmful substances Customs obscures the real reason for seizure. Counterfeit products are subject to seizure even if they are totally safe. Period. 

We previously explained the serious dangers of importing counterfeit trademark merchandise into the United States; how it results in seizure, monetary customs penalties, and some strategies as to how the importer can defend it. This story underscores the importance of everything we discussed in those articles, which you should read here: Importing Counterfeit Trademarks – Customs Seizures & Penalties; Part 1 and Part 2.

DALLAS – U.S. Customs and Border Protection officers working at the Dallas/Fort Worth International airport seized 200 Rainbow Loom ® Monster Tail ™ kits, Nov. 16.

“This seizure is indicative of the level of attention CBP officers are paying to protect consumers from harmful counterfeit products,” said CBP Area Port Director Cleatus Hunt. “Genuine products pass rigorous safety testing while cheap imitations, though packaged to look authentic, are an inferior product containing harmful substances.”Customs Seizure of Counterfeits

Common harmful substances found in counterfeit toys include lead or phthalates.

The counterfeit craft item was made in China and enroute to La Paz, Bolivia. CBP officers examined the shipment of 15 cartons which was manifested as necklaces when it arrived in Dallas. Upon examination, officers discovered the popular children’s kits among the cartons and after verifying the kits were counterfeit, seized the cartons containing the kits.

Protecting intellectual property rights is a priority CBP trade issue because counterfeit and pirated goods not only hurt American businesses, these products are often associated with criminal activities and fund other criminal enterprises.

For this particular seizure, a primary concern was the risk the counterfeit kits posed to the consumer. Rainbow Loom ® cautions against purchasing counterfeit kits with illustrations of the dangers fake kits pose to consumers.

Shoppers who suspect they purchased a counterfeit item should discontinue using the product and contact the National IPR coordination center. Consumers can learn about getting their money back by visiting the Federal Trade Commission.

As the holiday shopping season begins, shoppers can protect themselves by learning how to spot a fake at Stopfakes.gov.

Importing counterfeit items into the United States is a very serious matter. First, it is very likely that after seizure the property will be forfeited and destroyed by the U.S. government if, in fact, they are violative of the trademark laws.

Once forfeiture is perfected, the person who caused the importation will probably get a notice of penalty from U.S. Custom & Border Protection in the mail for the equivalent of the value of the products if they were real. The importer will have a chance to respond to customs’ notice of penalty with the Fines, Penalties, and Forfeitures office by filing a petition for mitigation and ask customs to reduce the penalty based on the presence of certain mitigating factors that customs particularly looks for. Great Lakes Customs Law has been very successful in getting these kinds of penalties reduced and, sometimes, even eliminated entirely. If the person fails to pay the penalty, the government can bring a lawsuit in federal district court to recover the penalty in the form of a judgment, after which point the government can lien property, garnish bank accounts, and seize property.

If you have had money or merchandise seized by customs because they allege it is counterfeit and contains trademark violations, 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 seizures nationwide.

San Juan CBP officers seize counterfeit electronics

Many fail to grasp the importance of CBP seizures of counterfeit merchandise, and many fail to grasp they are liable for purchases made on the Internet that involve the importation of goods into the United States customs territory. It causes the trademark holder harm, confuses the purchasers, steals money from consumers who overpay for fakes, and destroy a reputation for brand quality. Some counterfeits, like electronics with a fake testing laboratory certifications, or those missing legally required safety features, are simply dangerous.

The story that follows perfectly demonstrates the reasons why customs seizes counterfeits and often penalizes people who import them, my comments are in [brackets] (original story HERE):

The Internet has made it easy to find and purchase items from almost anywhere in the world [NOTE: Something we talked about in Customs Liability for Internet Purchases – CLICK HERE]. With a high demand for well-known brands, many online vendors sell counterfeit products online, infringing on various trademark holder’s rights and revenues.

US Customs and Border Protection (CBP) San Juan Field Operations officers and import specialists seized this past weekend various courier consignments that contained counterfeit speakers, car beepers [??], iPhone CBP Counterfeit Seizureparts, cell phone front screens, USB cables and writs-watches [seizure of counterfeit iPhone and Apple parts is a popular past-time of CBP].

Various consignments inspected by CBP officers at the San Juan Air Cargo facility, revealed products that infringed the intellectual property rights of Dr. Dre beats, Pandora, Samsung, BMW, Belkin and Disney trademarks.  The products were shipped from vendors in China and Hong Kong. “The trade in these illegitimate goods is associated with smuggling and other criminal activities, and often funds criminal enterprises”, stated Area Port Director Juan Hurtado.  “Protecting intellectual property rights (IPR) remains a CBP priority trade issue.”

Consumers seek and purchase particular brands of products, believing that such brands have an intrinsic guarantee of their quality.  Without a brand to protect, counterfeiters just seek to produce superficial quality products and take advantage of the loyalty that consumers have for a branded product. Poor quality products end up destroying the reputation of the copied brand, when it becomes impossible to distinguish the real product from a counterfeit.

The last paragraph raises an interested question that I haven’t found a client willing to argue before customs yet: what happens when the products aren’t counterfeits, but are gray market goods that the trademark holder does not want imported into the United States? In other words, what happens when people inside the factory where genuine goods are made take some product out the backdoor and sell it online, and it gets imported into the United States? That’s an interesting question indeed….

Like we have explained previously, anytime your imports violate the law you face a hefty penalty for  a CBP counterfeit seizure. We can help you if you are facing penalties from CBP for importing counterfeit trademarked merchandise. 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).

Call our office at (734) 855-4999 to speak to a customs lawyer, or CONTACT US HERE. 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. Consult a customs lawyer who is well acquainted with the laws enforced by the customs service and who can judge the legality of the transaction, by even getting a prospective ruling from customs in advance.

Please read these CBP counterfeit seizure articles: