COVID and Counterfeits.

As the year ends, the 2020 COVID lockdowns has resulted in increased seizure by U.S. Customs and Border Protection (CBP) of face masks, un approved testing kits, unlabeled medicine, non-FDA approved treatments, etc.

COVID-19 Test Kit
Image of non-FDA approved COVID-19 test kits, source CBP.gov

In the past month, CBP has seized:

  1. 6,080 counterfeit 3M masks in Cincinnati labeled as “3M Disposable Respirators Model 8210”. The shipment from Hong Kong was scrutinized by CBP because the country of origin marking on the outside of the box was labeled as “Made in the USA”. CBP officers determined the 3M masks were counterfeit and seized the goods before they were to be sent to Kingston, Jamaica.
  2. CBP officers in San Diego seized a shipment containing 251 non-FDA approved COVID-19 test kits from Mexico. The shipment caught the attention of CBP because the kits were manifested as plastic cards. Over 251 test kits divided among two packages were seized and likely to be destroyed.
  3. In another shipment, CBP officers in El Paso seized more than 100,000 counterfeit 3M N95 surgical masks for use by hospital workers. If authentic, the N95 surgical masks carried an MSRP of $600,480.

If you have had your COVID-related goods seized by Customs, contact customs seizure attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com.

ICE HSI special agents determined the masks were counterfeit after working with the National Intellectual Property Rights Coordination Center and 3M Company.

“The seizure of these counterfeit surgical masks not only ensures the health and safety of our frontline health care workers by preventing them from receiving inferior personal protective equipment, it also protects the integrity of the American economy.  We will continue to aggressively investigate, arrest and prosecute criminal counterfeiters who show a total disregard for human life and take advantage of a relentless world pandemic for economic gain.” said Erik P. Breitzke, acting special agent in charge of ICE HSI El Paso.

“HSI and CBP will continue to collaborate to prevent unauthorized and counterfeit products from getting to U.S. consumers to protect the health and safety of the American public and the American economy,” said Ysleta Port Director Arnoldo Gomez. “This large seizure of counterfeit surgical masks, destined for frontline medical workers, demonstrates the great collaborative effort between CBP and HSI. Counterfeit surgical masks pose a great risk to our medical community, and any individual who may use them.” 

This shipment is in violation of Importation, Removal and Contrary to Law (19 U.S.C. 1595a(c)(2)(A)) and the Federal Food, Drug and Cosmetic Act. ICE HSI El Paso is investigating the seizure with assistance from CBP.

ICE HSI launched Operation Stolen Promise in April 2020 to protect U.S. consumers from the increasing and evolving threat posed by the pandemic. The operation involves various federal agencies, including CBP, the U.S. Department of Justice, U.S. Postal Inspection Service, U.S. Food and Drug Administration, the Internal Revenue Service, and multiple private sector partners, including Pfizer, 3M, Amazon and others.

Operation Stolen Promise combines ICE HSI’s expertise in global trade, financial fraud, international operations and cybercrime to investigate financial fraud schemes, the importation of prohibited pharmaceuticals and medical supplies, offending e-commerce schemes, and any other illicit criminal activities associated with the COVID-19 virus that may compromise legitimate trade, financial systems and/or endangers the public. 

For more information or to report COVID

New Country of Origin Marking Rules for Goods Made in Hong Kong –

man sitting on top of building
Photo by Brayden Law on Pexels.com

President Trump signed Executive Order 13936 in mid-July changing the country of origin marking rules for goods made in Hong Kong – see below for a copy and paste from the CSMS of the new marking rules:

*****

Cargo Systems Messaging Service
CSMS #43633412 – GUIDANCE: New Marking Rules for Goods Made in Hong Kong – Executive Order 13936

PURPOSE

The purpose of this memorandum is to provide guidance on the new country of origin marking rules for goods produced in Hong Kong based on the President’s Executive Order (EO) on Hong Kong Normalization (EO 13936, dated July 14, 2020).

SUMMARY

On July 14, 2020, the President signed EO 13936 on Hong Kong Normalization. The EO suspends the application of section 201(a) of the United States-Hong Kong Policy Act of 1992, as amended (22 U.S.C. 5721(a)), to 19 U.S.C. 1304, Marking of imported articles and containers. Appropriate actions must be commenced within 15 days (effective July 29, 2020) of the EO’s issue date.

GUIDANCE

The position set forth in this document is applicable as of July 29, 2020. A transition period will be granted for importers to implement marking consistent with this position for imported goods produced in Hong Kong. Such goods, when entered or withdrawn from warehouse for consumption into the United States, after September 25, 2020 must be marked to indicate that their origin is “China” for purposes of 19 U.S.C. 1304.

Transition Period

CBP will grant a 45-day transition period, until September 25, 2020, in order to give the trade sufficient time to adjust to the new marking rules. During this period, Personnel from the Ports of Entry and Centers of Excellence and Expertise (Centers) are directed to neither issue marking notices, nor take further enforcement actions on goods produced in Hong Kong for purposes of 19 U.S.C. 1304. Centers should take measures to inform accounts of these new marking rules for Hong Kong set forth in the EO.

RELATED DOCUMENTS:

Country of Origin Marking of Products of Hong Kong (85 FR 48551, August 11, 2020)
The President’s Executive Order on Hong Kong Normalization (85 FR 43413, July 14, 2020)
1997 FR Hong Kong Customs 97-14662 (62 FR 30927, June 5, 1997)

*****

If you have any questions how the new country of origin marking rules will impact your business, contact David Hsu by phone/text anytime at 832-896-6288 or by email at attorney.dave@yahoo.com.

Pipe seized due to false country of origin markings.

Seized pipe

Image of suspected false “MADE IN CANADA” marking, source: CBP.gov

According to a U.S. Customs and Border Protection (CBP) media release, CBP officers inspected and seized a commercial truck carrying pipe stenciled with the words “Made In Canada” as the country or origin marking. However, upon further inspection, CBP officers determined the pipe contained other markings indicative of a third country of origin.

As a result, CBP officers seized the 48 pieces of pipe with an invoiced value of $9,677.

If you have any questions about marking or country of origin, give us a call. We also assist companies and importers with determining what is the correct country of origin and whether we can quantify goods as a different country of origin based on substantial transformation. 

We are here to answer all your country of origin questions, call/text David Hsu for immediate assistance at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Chinese firms accused of using fake “Made in Vietnam” labels to avoid paying duties.

bench nature love people

Photo by Pixabay on Pexels.com

According to the Agence France-Presse, Vietnamese authorities are cracking down on Chinese companies that use counterfeit “Made in Vietnam” labels on goods shipped to the US to avoid 25% tariffs on over $325 billion in imports to the US. For example, the article cited Chinese plywood shipped to America through a Vietnamese company to avoid payment of duties for Chinese origin goods to the US.

The Vietnamese government will increase their inspection of exports from Vietnam to to prevent further incorrectly labeled goods from leaving.

As as result of the tariffs on Chinese goods, US imports from Vietnam has increased to $16 billion, a 40 percent increase from a year ago.

The AFP article did not mention “transshipment” – which is what is happening when Chinese companies ship goods to Vietnam, change the country-of-origin marking to “Made in Vietnam” and then ship to the US.

If you or someone you know is being accured of transshipment of goods through a third country to avoid payment of duties, contact trade attorney David Hsu by text/phone at 832-896-6288 or by email at attorney.dave@yahoo.com, or dh@gjatradelaw.com.