Photo of seized iPhones at Pembina. Source: cbp.gov
According to a U.S. Customs and Border Protection (CBP) media release, officers at the Pembina officers seize counterfeit iPhones at the Pembina Port of Entry in North Dakota.
The iPhones were seized for being in violation of intellectual property rights (IPR) regulations. The shipment contained 39 cell phones with the Apple trademark and have a retail price of $31,200.
The rest of the media release talks about CBP enforcing intellectual property, how counterfeit goods funds criminal activity, and counterfeit goods may be made out of materials that are harmful to the health and safety of the users..
The article didn’t go into detail, but here are a few other things you should know from my handling of iPhone seizures:
- Usually the violation is for a counterfeit use of the iPhone wordmark or the Apple logo. The “Notice of Seizure” will tell you what was violated. You have to read this carefully and must respond within 30 days to a notice of seizure.
- You will also get a letter from Apple’s law firm asking you to stop importing iPhone goods.
- Be sure your address is current and accurate with CBP, they will only mail notices to the address on the shipment.
- If you get a Seizure Notice, you have 4 options: file a petition, offer in compromise, abandon the goods or refer to court.
- The value of the iPhones given by CBP will be much higher than you paid, as I believe they value the goods at the MSRP at the time they are first released.
- Why does the value matter? The value of the goods will be used to calculate any penalties. For example, civil penalties may be 3x the value of the shipment.
- CBP and Customs problems don’t go away – CBP has 5 years to go after an importer. CBP isn’t going away and neither will your seizure.
If you have had your shipment of iPhones seized, contact me. I’ve represented many cell phone importers of iPhones, Samsung and their accessories and there are things we can do but time is of the essence.
Contact me at 832-896-6288 or by email at attorney.dave@yahoo.com.