Monthly Archives: June 2021

Counterfeit AirPods seized by Customs.

June 27, 2021 By in Attorney, Import Export Attorney, U.S. Customs and Border Protection Tags: , , , , , , , , , Leave a comment
Seized TWS headphones, source: CBP.gov

In mid-June, U.S. Customs and Border Protection (CBP) officers in Louisville seized 8 shipments manifested as “bluetooth audio devices” and found 817 pairs of earbuds that bear a strong resemblance to Apple Incorporated’s AirPods three-dimensional configuration trademark. As you are aware, CBP is required by law to enforce trademarks and patents if the trademark/patent/copyright holder submits a request to Customs.

In all cases involving intellectual property rights seizures – CBP import specialists will submit photos or samples of goods suspected of violating intellectual property rights to the rights holder. In 100% of the cases, Apple will always reject any sample or photo as counterfeit. Even if the imported phone is a phone previously sold through T-Mobile, traded-in by the first user, sold to a liquidator, exported to China for repair, then shipped back to the US – Apple will notify Customs the phone is counterfeit.

While the AirPods in this shipment did not contain the Apple logo, CBP is enforcing the 3-d configuration trademark. While the photo provided by Customs is hard to see, I believe the AirPods seized are the TWS-iXX headphones. The earlier models of the TWS I believe started with the TWS-i7, and in 2021 I see TWS-i12 headphones being sold. I cannot see the model number clearly, but can determine the photos are boxed TWS series headphones.

Customs seized the headphones and determined the value of the 817 headphones was approximately $331,360 if genuine, or about $405 per pair. I do not know how CBP valued these headphones as authentic Apple AirPods start at $199 and go as high as $249 for the AirPod Pro models.

If you have had your TWS shipment seized by Customs, or have any other IPR violations, contact Customs attorney David Hsu for immediate assistance at 832-896-6288 or by email at attorney.dave@yahoo.com. We are based in Houston but represent clients nationwide and abroad. Call for your free consultation.

Importing solar materials? US bans some Chinese solar materials tied to forced labor.

June 26, 2021 By in CTPAT, Solar panels, WRO Tags: , , , , , , , , Leave a comment
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Photo by Pixabay on Pexels.com

Two days ago, the Biden Administration announced a ban on the importation of some solar materials from Xinjiang, the province in China that supplies most of the world’s polysilicon used to make solar panels. The ban is in response to what the White House accuses China of committing genocide and repression of Uyghurs and other Muslim minorities.

Specifically, the ban applies to imports by “Hoshine Silicon Industry Company” and any goods made using those products (sometimes referred to as goods “downmarket”). CBP will ban imports of certain manufacturers if they have “information reasonably indicating” that a manufacturer uses forced labor to produce its goods. The risk to importers is very high and Customs will require the importer of record to provide information proving their goods are not downmarket from Hoshine Silicon or other companies subject to the ban.

Besides Hoshine Silicon Industry Company, other companies subject to the ban include:

  1. Xinjiang Daqo New Energy Company,
  2. Xinjiang East Hope Nonferrous Metals Company,
  3. Xinjiang GCL New Energy Material Technology Company, and the
  4. Xinjiang Production and Construction Corps.

If you are unsure what to do, or unsure your products contain the banned materials, contact our office for a free no cost consultation. We also assist companies in the preparation of a Social Compliance Program to meet CTPAT requirements and to help lower your company’s risk of forced labor issues. Contact David Hsu by phone/text at 832-896-6288 for assistance or email attorney.dave@yahoo.com.

Does my company need a Social Compliance program?

June 25, 2021 By in Customs Lawyer, detention, forced labor, WRO Tags: , , , , , , , , Leave a comment
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Photo by Pixabay on Pexels.com

Yes and Yes. While import and export compliance are the typical programs in place for importers and exporters – one often neglected compliance program importers must have is the social compliance program.

The social compliance program is necessary to ensure compliance with Section 307 of the Tariff Act of 1930, prohibiting the importation of merchandise mined, produced, or manufactured, wholly or in part, in any foreign country by forced or indentured child labor – including forced child labor. Importers who import goods produced with forced labor may have their goods subject to exclusion, detention, seizure and may lead to a criminal investigation.

While many importers are confident their manufacturing supplier is not using forced labor, CBP also goes after importers who are downstream from the actual instance of forced labor. For example, even though you do not purchase goods from a company using forced labor – if the raw materials used in the production of the goods you import are made using forced labor – your goods are subject to detention. Even if the raw materials go through several manufacturers or companies before being incorporated into the final product you import – you as the importer of record are liable for any instances of forced labor at any stage of the supply chain.

A social compliance program is therefore a must to minimize the risk of a Customs detention on the basis of use of forced labor. Not only do importers need a social compliance program in place, they also need to adequately educate and train all key personnel on minimizing the importation of goods produced using forced labor.

If you want to minimize your detention risk of goods subject to a pending Withhold Release Order or have any questions about whether your goods may be subject to detention based on the multitude of outstanding WRO’s in place – call us for your free consultation. Our firm prepares and trains companies on forced labor compliance and are ready to help you. Call David Hsu on his cellphone or text at 832-896-6288 or by email at attorney.dave@yahoo.com.