Tag: trademark

New regulations allow importers to obtain seized merchandise samples from imporations of suspected counterfeit products. Here, a box of counterfeit contacts are pictured.

Seized merchandise samples from CBP

U.S. Customs & Border Protection amended their regulations concerning intellectual property, trademark, and copyright to give importers a greater opportunity to test the genuineness of their importations by obtaining seized merchandise samples from CBP. 19 CFR 133.21(d), effective October 19, 2015, provides as follows:

Disclosure to importer of unredacted photographs, images, and samples. CBP will disclose to the importer unredacted photographs, images, or an unredacted sample of imported merchandise suspected of bearing a counterfeit mark at any time after the merchandise is presented to CBP for examination. CBP may demand the return of the sample at any time. The importer must return the sample to CBP upon demand or at the conclusion of any examination, testing, or similar procedure performed on the sample. In the event that the sample is damaged, destroyed, or lost while in the possession of the importer, the importer must, in lieu of return of the sample, certify to CBP that: “The sample described as [insert description] and provided pursuant to 19 CFR 133.21(d) was (damaged/destroyed/lost) during examination, testing, or other use.”

CBP’s written comments about this new regulation confirm that the request for seized merchandise samples goes beyond the detention into seizure and beyond by stating: “if an importer does not identify a need for a sample until after CBP seizes goods as bearing counterfeit marks the importer may request a sample at that time.” Disclosure of Information for Certain Intellectual Property Rights Enforced at the Border, 80 FR 56370, 53674.  This new regulation specifically envisions the sample leaving CBP custody (by stating CBP can demand “return” at any time or after examination and testing; further, that the merchandise could be “damaged, destroyed, or lost while in possession of the importer”).

This new regulation totally changes the game importers face who have had merchandise seized for alleged counterfeit marks. Previously, samples or pictures of the seized merchandise were not available to the importer administratively, but only to the trademark owner. The old system left the importer at the mercy of CBP and the trademark owner, who alone could assess the authenticity of the marks. The only way to get samples was through (often impossible/impractical cooperation) from FP&F at CBP, or to file a claim to have the seizure tested before a district court judge, with all the rights to discovery that thereby attach.

Now that samples are available, the importer can obtain samples and perform its own examination or testing and provide evidence contrary to the determination of CBP or the trademark owner. The availability of sample, in our opinion, greatly levels the playing field when it comes to challenging a seizure made by CBP, or when challenging a later penalty proceeding. The possibility of a penalty for a seizure is a great reason to request and obtain a sample as a routine practice before the products are forfeited and destroyed.

Are you trying to get seized merchandise samples from CBP?

The detention, seizure, and forfeiture of merchandise bearing allegedly counterfeit trademarks is a long process, and fraught with procedural missteps for anyone who is not an attorney. You need the advice of a customs lawyer, not this article (which is not legal advice).

If you have products detained or seized because they are suspected of bearing counterfeit trademarks, can contact us for a seizure consultation by clicking the contact buttons on this page.

 

CBP Seizes Alleged Counterfeit Auto Parts in Florida

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:

CBP Seizes $1.2B in counterfeits in FY 2014

In addition to currency seizures and drug seizures, U.S. Customs and Border Protection seizes counterfeit merchandise imported into the United States. CBP considers counterfeit interception to be a priority trade issue. Customs has released their annual statistics for 2014 wherein they breakdown what they seized throughout the past fiscal year. The report includes the total volume of seizures, value, and countries from which the counterfeit goods were exported. The summary from Customs is repeated below:

U.S. Customs and Border Protection (CBP) and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) today announced the fiscal year 2014 results of an aggressive enforcement program to protect the United States from counterfeit and pirated goods. CBP and HSI are the components within the Department of Homeland Security (DHS) responsible for the enforcement of intellectual property rights (IPR).

“Protecting intellectual property rights is a critical part of CBP’s trade enforcement mission and critical to protecting American consumers,” said Commissioner R. Gil Kerlikowske. “In 2014, strong partnerships with our federal enforcement counterparts, effective targeting of high risk shipments and frontline interceptions of cargo at America’s ports of entry produced more than 23,000 seizures of fake products worth an estimated $1.2 billion that could have cheated or threatened the health of American consumers.”

[ . . . ]

In fiscal year 2014, there were 23,140 intellectual property rights seizures with an estimated manufacturer’s suggested retail price or MSRP of $1.2 billion, the value of the goods had they been genuine.  In addition, 144 shipments of circumvention devices were seized for violation of the Digital Millennium Copyright Act.  CBP also enforced 44 exclusion orders in fiscal year 2014. Since 2007, CBP has identified intellectual property rights enforcement as a priority trade mission. Although IPR seizures declined slightly in 2014 from 2013, CBP recorded its third busiest year for seizures since 2005.

[ . . . ]

Wearing apparel and accessories continue to be the number one commodity classification based on number of seizures with 7,922 seizures or 28 percent.  Watches and jewelry are the largest commodity classification by value with an estimated MSRP of $375 million or 31 percent.

The People’s Republic of China remains the primary source economy for counterfeit and pirated goods seized with a total value of $772 million, representing 63 percent of all IPR seizures by MSRP. Hong Kong ranks second with $310 million or 25 percent.

Tactical interagency collaboration with the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) resulted in 683 arrests, with 454 indictments and 461 convictions.

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:

CBP Seizes $430k of Counterfeit/Smuggled Perfume in Champlain

Here is an interesting counterfeit seizure story out of Champlain, New York, from CBP. The officers there intercepted a truckload of perfume with “suspicious labeling.”

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).

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. 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:

U.S. Customs Seizure of $2M in Counterfeit Handbags

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). 

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.”

The counterfeit handbags will be destroyed. In July, CBP officers seized 377 cartons of counterfeit sunglasses with an estimated manufacturer’s suggested retail price (MSRP) of $1,619,550. … In April, CBP officers seized more than $1 million in counterfeit soccer apparel.

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:

Customs Counterfeit Seizure of Tablet Computers

As part of our ongoing efforts to analyze news in light of the customs laws and keep importers informed of the rights and obligations, we provide the below about a customs counterfeit seizure (original here) for alleged fake tablet computers with illegal counterfeit marks.

Many fail to grasp the importance of customs seizing counterfeit merchandise. In the picture below which is from the original customs news release had the caption “A tablet computer with counterfeit marks for SD.” Well, I guess… “Tarjeta SD” does translate to “SD Card” but I think the seizure for SD violative marks may have rested on more than just this word appearing inside the operating system. Or it may not have. Anyway, on to the story, with our further analysis below:

LAREDO, Texas – The Import Specialist Enforcement Team [“ISET”]  at U.S. Customs and Border Protection’s Laredo Port of Entry recently seized a commercial shipment of counterfeit electronic tablets valued at $1.1 million for allegedly infringing on the Amazon, Google, Micro SD and SD registered and Customs Counterfeit Seizurerecorded U.S. trademarks.

In the recently finalized enforcement action, a CBP import specialist at World Trade Bridge selected a shipment of polymer lithium operated screens, electronic tablets, for a secondary examination. During the examination, CBP import specialists observed that the electronic tablets bore the Amazon, Google, Micro SD and SD trademarks, all of which are trademark recorded with CBP. A legal review by CBP Headquarters Intellectual Property Rights Branch indicated the imported tablets bore potentially counterfeit marks. A license administrator for SD confirmed that the use of their trademark was unauthorized. CBP’s ISET determined on August 14 that the shipment of 11,540 electronic tablets lacked legal authorization from SD-3C LLC, Google Inc., and Amazon Technologies Inc., and that the tablets were counterfeit and subject to seizure. CBP subsequently seized the tablets, which carried a manufacturer’s suggested retail price, had the trademarks been genuine, of $1.1 million.

“This is a significant seizure of tablets found to be infringing on three separate trademarks recorded with CBP,” said Joseph Misenhelter, CBP port director, Laredo Port of Entry. “Seizures like these ensure that valuable intellectual property is protected from harm from would-be knockoff products and help restore the integrity of America’s economy.”

Like we have explained previously, this importer stands to face a hefty penalty — around $1 million — for this customs counterfeit seizure. 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 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:

Customs Seizure & Penalty for Counterfeits and Uncertified Engines

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 Keep Calm and Contact Your Customs Attorneymanufacturer’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:

 

 

Customs Seizure & Penalties for Fake & Faulty Hairdryers

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:

 

Counterfeit Sunglasses Seized by Customs

Customs made another high value seizure of counterfeit merchandise being imported into the United States with infringing trademarks under 19 USC 1526. Customs seized 377 cartons of “Ron-Bei” sunglasses that they allege infringe the “Ray-Ban” trademark. This would be a good seizure and penalty case for our customs lawyer to defend, because it’s arguable whether the goods are counterfeit. The manufacturer’s suggest retail price, if the counterfeits were genuine, is $1,619.550. 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). 

Let’s have a look at the story (original HERE):

Counterfeit Sunglasses Seized By Customs
Counterfeit sunglasses with an estimated manufacturer’s suggested retail price (MSRP) of $1,619,550 seized by U.S. Customs and Border Protection officers at the Port of Savannah.

CBP officers discovered the shipment of sunglasses in a container that was selected for examination. During the inspection, officers discovered that the items bore a similar trademark to the Ray Ban Sunglasses logo. The items contained logos and similarities on the hang tags and the sunglasses that infringes Ray Ban’s trademark.

Ray Ban is an international company owned by Luxottica Group S.P.A. Luxottica Group is a manufacturer of eyewear with more than 7,100 optical and sun retail stores in North America, Asia-Pacific, China, South Africa, Latin America and Europe. In addition to a global wholesale network involving 130 different countries, the Group manages leading retail chains in major markets in North America, Asia, China, and Latin America.

CBP protects businesses and consumers every day through an aggressive Intellectual Property Rights enforcement program. CBP targets and seizes imports of counterfeit and pirated goods, and enforces exclusion orders on patent-infringing and other IPR violative goods. Detailed information about recording intellectual property rights and reporting intellectual property infringement to CBP can be found on the CBP website.

Whoever wrote up this news release for customs should get a little money from Ray Ban for the free product pitch in the middle paragraph. 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.