Typically, counterfeit importations are just subject to seizure. In other words, the ‘penalty’ is loss of the goods through government seizure and forfeiture. However, Customs can impose monetary penalties under 19 USC 1526(f) on “any person who directs, assists … aids and abets [in] the importation of merchandise for sale or public distribution” once the property is seized.
Customs may presume that the large quantities means that is must have been intended for sale or public distribution. Thus, this person may have exposed himself to a monetary penalty equal to the MSRP of the seized goods as if they were real. It could be that it was meant for public sale or distribution, or it could just be that all these articles were intended for personal use and the buyer just could not stop himself from getting a good deal. Here’s the story:
U.S. Customs and Border Protection officers working at the George Bush Intercontinental Airport seized counterfeit Gucci, Burberry, Lacoste, Versace, Armani, Ferrari, Coco Chanel, Tory Burch and Michael Kors merchandise, May 13,
Counterfeit Clothing Seized by CBP
valued at more than $48,000.
The seized items included shirts, hats, shoes, purses and jewelry destined for Houston.
CBP officers conducted an inspection of a passenger arriving from El Salvador with checked bags. During the inspection, they discovered 161 brand-named articles that appeared to be counterfeit. The items did not appear to be of the quality consistent with legitimate goods as the items included unusual labeling and the markings on the clothing were not manufactured by the trademark holders.
Counterfeit Chanel Jewelry
“Packing hundreds of phony articles in suitcases doesn’t release passengers from their obligation to adhere to U.S. import laws and requirements,” said Houston CBP Port Director Charles Perez. “This seizure protects the trademark holder, their businesses and their employees and denies criminal organizations from reaping profits from the sale of counterfeit and illegitimate consumer goods.”
Counterfeit Chanel jewelry was among the seized items. Watches and jewelry topped the list of seized items sorted by value in fiscal year 2014.
CBP officers obtained digital images of the merchandise and forwarded them to the trademark owner to determine their authenticity. After verifying that the merchandise was counterfeit, CBP seized every item for infringement of intellectual property rights.
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:
Here’s one of those seldom thought about counterfeit merchandise seizures: counterfeit autoparts. When you think about counterfeits you usually think about currency, clothing, watches, and things like that. You don’t typically think of auto parts being something is counterfeited. But apparently they are out there, and it happens a lot, and its dangerous. Here’s the story from Customs (full version here):
U.S. Customs and Border Protection (CBP) officers and import specialists seized more than 3,260 counterfeit automobile parts during an inspection at Port Everglades on May 8. The manufacturer’s suggested retail price of the counterfeit products is around $280,000.
CBP, along with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), targeted the shipment as part of a joint multi-layered enforcement operation focused on interdicting illegal counterfeit automotive parts.
The seizure included over 180 different types of vehicle parts ranging from small fuses to front ends.
Counterfeit automotive parts are a safety risk as they are of inferior quality compared to the authentic product and their failure to perform to standard could cause safety issues resulting in catastrophic failure.
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:
From the picture produced with the news release it appears the importer attempted to disguise the counterfeit perfume bottles with labels that can easily be peeled off. In the picture, it appears the Beauty Woman” label was once on top of and concealing the label that says “Miss Dior Cherie.” This is likely going to result in not only a seizure and penalty for violations of the trademark laws, but also for smuggling; because by mislabeling the perfume the importer concealed the counterfeit nature of the product.
This importer, if he did this intentionally, is too clever by half. I can see an argument that it was not known the perfume bore a counterfeit label underneath the upper label, but in the absence of proof of active measures to prove that steps were taken by the importer to ensure that counterfeits were not being imported, that’s going to be a tough sell to Customs.
CHAMPLAIN, N.Y. – On March 19, U.S. Customs and Border Protection officers working at the Champlain port of entry seized over $430,000 in counterfeit perfume.
On February 21, CBP officers encountered a tractor trailer hauling a commodity listed as perfume. Initial review of the shipment revealed suspicious labeling and packaging consistent with counterfeit goods. Further review by CBP import specialists confirmed the goods were counterfeit and violated trademarks from the following manufacturers: GUCCI, Calvin Klein, Miss Dior, Juicy Couture, Ralph Lauren, and Carolina Herrera.
The shipment was seized for bearing marks identical with or substantially indistinguishable from trademarks.
The seizure was a result of a joint effort with Immigration and Customs Enforcement HSI Special Agents.
Like we have explained previously, this importer stands to face a hefty penalty — around $500,000 — for this customs counterfeit seizure. Importing counterfeit items into the United States is a very serious matter. Once forfeiture is perfected, the person who caused the importation will probably receive a notice of penalty from U.S. Custom & Border Protection for a monetary penalty equivalent of the value of the products if they were real (MSRP).
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. We can help you if you are facing penalties from customs 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 Champlain, 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 customs counterfeit seizure articles:
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.Â
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.”
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.
Customs made another high value seizure of counterfeit merchandise being imported into the United States with infringing trademarks under 19 USC 1526. Customs seized 198 counterfeit “Hermes Birkin” handbags that they allege infringe the a trademark.  The manufacturer’s suggested retail price, if the counterfeits were genuine, is $1,861,200. That is what the penalty amount will be calculated from.
We previously discussed, in a two article series, the dangers of importing counterfeit trademark merchandise into the United States, how it can result in seizure, monetary penalties, and how the importer can defend it. This story underscores the importance of everything we discussed in those articles: Importing Counterfeit Trademarks – Customs Seizures & Penalties; Part 1 and Part 2  (click to read).Â
SAVANNAH, Ga. — U.S. Customs and Border Protection (CBP) Office of Field Operations at the Port of Savannah, Ga., seized 198 counterfeit Hermès Birkin handbags October 6. Had the goods been genuine Hermès Birkin handbags, CBP import specialists estimated that the merchandise would have had an estimated manufacturer’s suggested retail price (MSRP) of $1,861,200.
This seizure is the Port of Savannah’s third multi-million dollar seizure of counterfeit goods this year.
The shipment, manifested as polyurethane handbags, arrived to the Port of Savannah September 4 from China. It was destined to an address in Atlanta.
“Counterfeit goods pose a potentially serious safety threat to consumers and economic loss to U.S. businesses,” said Lisa Beth Brown, Area Port Director in Savannah, Georgia. Enforcing Intellectual Property Rights (IPR) remains a top trade priority for U.S. Customs and Border Protection.”
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.
How would you like to cough up a half million dollars for importing counterfeit and infringing goods into the United States? Like we have explained previously, this importer stands to face a hefty penalty — around $500,000 – for this customs counterfeit seizure of fake toys and purses from China.
People fail to grasp the consequences of importing counterfeits. The reason might be a failure see the harm that it causes to the owner of the trademark, by confusing their purchasers and destroying a reputation for quality, or just not caring about the consequences in quest for making themselves some money. To those and others, I say: Consult a customs attorney who is well acquainted with the laws enforced by the customs service and who can judge the legality of the transaction, even getting advice from customs in advance.
The importers should expect to receive a notice of penalty from customs in the next few months. Here is the story:
U.S. Customs and Border Protection officers . . . seized over 200 counterfeit handbags and nearly 50 packages of plastic building blocks, Sept. 29, with an estimated Manufacturer Suggested Retail Price of more than $500,000.
“Intercepting counterfeit goods protects the trademark holder, the unsuspecting consumer, and strengthens the U.S. economy,” said Houston CBP Area Port Director Dave Fluty. “Import safety and protecting intellectual property rights are priority trade issues. We will take every opportunity to intercept counterfeit goods entering through this port.”
The shipment, which originated from China,was manifested as bags, plastic toys and jewelry. However, when CBP officers examined the shipment, cartons of women’s handbags bearing counterfeit Prada, Christian Dior, Michael Kors, and other name brands were discovered. Also in the shipment were cartons of plastic building blocks bearing the Lego brand.
CBP officers provided images of the items to the different trademark holders who each confirmed that the imported handbags and building blocks were counterfeit and confusingly similar to the genuine brand. The import specialists determined the MSRP value of the goods. The seized items, which were enroute to a Houston store, will be destroyed.
Homeland Security Investigations is investigating.
Last year, CBP seized more than $4.7 million in intellectual property rights violations nationwide. Handbags and wallets were the highest valued seized goods with an MSRP estimate of more than $700 million, up from more than $500 million in 2012.
To enforce intellectual property rights, CBP relies on trademark owners registering with the Patent and Trademark Office and by recording the trade name with CBP at e-Recordation.
The trademark holder confirmed they were both counterfeit and confusingly similar? That’s impossible. A counterfeit is something that is indistinguishable, and something that is confusingly similar is considered “infringing” and not a counterfeit. And again, that’s another reason why you need a lawyer to respond to this type of customs actions: oftentimes, customs doesn’t even fully understand what laws they are enforcing!
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:
The CBP Advisory Committee on Commercial Operations has a meeting on October 7th, 2014, which is free for the public and may be attended via webinar (if you can get the links to work – we cannot). This was announced in the Federal Register. The topics include a variety of presentations with review and discussion pertaining to aspects of  which should be of interest to the importing public, such as:
Review of 2014 Trade Efficiency Survey
Sub-workgroups on exports and export licensing
1USG – or the “One U.S. Government at the Border” efforts, including findings and recommendations by the FDA
Voluntary prior disclosure of IPR infringment violations, AD/CVD and eBond discussions
C-TPAT Export and Trusted Trader Programs
ACE and role of Customs Brokers
Beyond the Border activities with Canada and 21st Century activities with Mexico
Most interesting for me will be #4 and the voluntary prior disclosure of IPR violations, which has been discussed before (agenda here). I hope to hear some concrete proposals on who, what, when and why. You can bet that if customs creates a regulatory system for voluntary prior disclosure of intellectual property rights infringement, importers will be encouraged to undertake a review of their past practices because customs will, with little doubt, dramatically increase enforcement to give the program a kick-start.
Registration can be done as follows (excepted from the Federal Register):
For members of the public who plan to participate via webinar, please register online at https://apps.cbp.gov/tereg/index.asp?w=29 by 5:00 p.m. EST on October 3, 2014. Feel free to share this information with other interested members of your organization or association. Members of the public who are pre-registered and later require cancellation, please do so in advance of the meeting by accessing one (1) of the following links: https://apps.cbp.gov/tereg/cancel.asp?w=28 to cancel an in person registration, or https://apps.cbp.gov/tereg/cancel.asp?w=29 to cancel a webinar registration.
For members of the public who plan to attend the meeting in person, please register either online at https://apps.cbp.gov/tereg/index.asp?w=28; by email to tradeevents@dhs.gov; or by fax to 202-325- 4290 by 5:00 p.m. EST on October 1, 2014. You must register prior to the meeting in order to attend the meeting in person. Please refer to the ADDRESSES section below for more details.
As I said, the links have never worked for me, but if you need help registering here is the contact person:
FOR FURTHER INFORMATION CONTACT: Ms. Wanda Tate, Office of Trade Relations, U.S. Customs and Border Protection, 1300 Pennsylvania Avenue NW., Room 3.5A, Washington, DC 20229; telephone 202-344-1440; facsimile 202-325-4290.
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 parts, 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 CBPÂ counterfeit seizure articles:
Importing is a tricky business that presents a trap for the novice. You may think you can import merchandise that can be used to make a few quick dollars on because of a high profit margin. The story below falls into that category.
This person attempted to import 300 Wii controllers, 400 USB convertors, and 200 small motorcycle engines. If successful, there was some money to be made. But the problem was the Wii controllers and USB converters were counterfeit, and the 200 small motorcycle engines lacked an important EPA certification.
The consequences? Customs seized the counterfeits and the small motorcycle engines are an importation contrary to law because of the failure to have certification by the EPA.
PORTAL, N.D. — U.S. Customs and Border Protection (CBP) officers recently targeted a rail container at the port of Portal, North Dakota. In February 2014, CBP officers inspected the rail container and discovered merchandise that violated multiple laws and regulations. The merchandise consisted of approximately 300 counterfeit Wii remote controllers, 400 counterfeit USB converters and 200 small motorcycle engines that were not certified by the U.S. Environmental Protection Agency (EPA).
CBP determined that the trademark was counterfeit on the Wii remote controllers and USB converters. As a result, CBP seized those items. The counterfeit merchandise had a manufacturer’s suggested retail price of $20,800. In addition, CBP seized the small engines that were found not to be certified, as required by the EPA. The manufacturer’s suggested retail price for the engines was $16,400.
“CBP continues to play a key role in Intellectual Property Rights enforcement,” said Brent Beeter, the Port Director in Portal. “CBP continues to stay focused on combating the illegitimate trade in counterfeit products.”
Stopping the flow of illicit goods is a Priority Trade Issue for CBP. The importation of counterfeit merchandise can damage the U.S. economy, and threaten the health and safety of the American people.
With the growth of foreign trade, unscrupulous companies have profited billions of dollars from the sale of counterfeit and pirated goods. To combat the illicit trade of merchandise violating laws relating to intellectual property rights (IPR), trademark and copyright holders may register with CBP through an online system. Such registration assists CBP officers and import specialists in identifying violative merchandise.
CBP’s IPR enforcement strategy is multi-layered and includes seizing violative merchandise at our borders, pushing the border “outward” through audits of suspect importers, cooperating with our international trading partners, and collaborating with industry and governmental agencies to enhance these efforts.
Many fail to grasp the importance of customs seizing counterfeit or uncertified merchandise. The reason might be a failure see the harm that it causes to the owner of the trademark, by confusing their purchasers and destroying a reputation for quality, or just not caring about the consequences in quest for making themselves some money. To those and others, I say: Consult a customs attorney who is well acquainted with the laws enforced by the customs service and who can judge the legality of the transaction, even getting advice from customs in advance.
You might be facing penalties from customs for importing counterfeit trademarked merchandise or for importations contrary to law. We can help. You can pay the penalty or, as we recommend, file a petition for mitigation to ask for a reduction in the penalty. Once the notice of penalty is sent, the recipient has either 30 days to pay the penalty or file a detailed petition arguing the legal bases for further mitigation (reduction) or cancellation of the penalty. 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:
Many fail to grasp the importance of customs seizing counterfeit merchandise. The reason might be a failure see the harm that it causes to the owner of the trademark, by confusing their purchasers and destroying a reputation for quality. Another reason might be because they never got scammed into buying a product at full price… only to find out it is a worthless counterfeit. But sometimes counterfeits are dangerous.  Like electronics with a fake testing laboratory certifications, or those missing legally required safety features. The story that follows perfectly demonstrates the reasons why customs seizes counterfeits and often penalizes people who import them (original HERE):
HOUSTON – U.S. Customs and Border Protection officers have seized nearly 5,000 hair dryers as the required Ground-Fault Circuit Interrupters that
Images from Seizure
protect consumers from electrical shock or electrocution hazards were missing. The hair dryers, which originated from China, have a Manufacturer’s Suggested Retail Price of almost $330,000. “This seizure is the latest example of the vigilance and attention to detail our officers pay to protect consumers from imported goods
Image for Seizure
that pose a dangerous risk,” said CBP Houston Area Port Director Dave Fluty. During an examination of the shipment, officers found the dryers missing the immersion protection plug and bearing a suspect trademark logo. Officers coordinated with Consumer Product Safety Commission and with the CBP Intellectual Property Rights Rights [sic] Branch, Regulations and Rulings, Office of International Trade to verify authenticity. The CBP IPR Branch confirmed the products were counterfeit, and a CPSC evaluation of product samples concluded the required immersion protection plug was missing resulting in the seizure of the entire shipment that contained more than 400 boxes of the faulty articles. According to CPSC, consumers should look for a large, rectangular-shaped plug at the end of the hair dryer cord indicating the presence of a GFCI. The certification mark of a recognized testing laboratory should also be visible on the hair dryer or on the hair dryer’s packaging.
The individual who caused the importation is now liable to customs for penalties for 1) importing counterfeits into the United States under 19 USC 1526 and 2) importations contrary to law under 19 USC 1595a, because there was no GFCI on the hairdryers. It will prove to be a costly mistake. As we have previously explained, the penalties for the trademark violation are equivalent to the MSRP of genuine articles, or in this case almost $330,000; the penalties for importations contrary to law is equivalent to the domestic value of the imported merchandise, which is likely far less than the $330,000 figure and equivalent to, more or less, the price actually paid for the merchandise. I am sure any penalty in this case will be for at least $330,000.
You might be facing penalties from customs for importing counterfeit trademarked merchandise or for importations contrary to law. We can help. You can pay the penalty or, as we recommend, file a petition for mitigation to ask for a reduction in the penalty. Once the notice of penalty is sent, the recipient has either 30 days to pay the penalty or file a detailed petition arguing the legal bases for further mitigation (reduction) or cancellation of the penalty. 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:
consistent with counterfeit goods. Further review by CBP import specialists confirmed the goods were counterfeit and violated trademarks from the following manufacturers: GUCCI, Calvin Klein, Miss Dior, Juicy Couture, Ralph Lauren, and Carolina Herrera.
Birkin handbags, CBP import specialists estimated that the merchandise would have had an estimated manufacturer’s suggested retail price (MSRP) of $1,861,200.
Manufacturer Suggested Retail Price of more than $500,000.
parts, cell phone front screens, USB cables and writs-watches [seizure of counterfeit iPhone and Apple parts is a popular past-time of CBP].
manufacturer’s suggested retail price of $20,800. In addition, CBP seized the small engines that were found not to be certified, as required by the EPA. The manufacturer’s suggested retail price for the engines was $16,400.
