The opinions expressed are those of David Hsu and do not necessarily reflect the views of the firm, its partners, or its clients. The information in this blog is for general information purposes only and is not intended to be and should not be taken as legal advice on any subject. No recipient of content from this site, clients or otherwise, should act on the basis of any content in this site without seeking the appropriate legal or professional advice based on the particular facts and circumstances at issue from an attorney licensed in the recipient's state.
As you are aware, the HMTX Industries LLC, et al., v. U.S., action initiated Sept. 10, 2020, in the U.S. Court of International Trade (“CIT”) alleges the U.S. failed to comply with applicable law when it imposed the additional “List 3” and “List 4a” duties on certain imports from China. Since the filing, over 3,200+ importers have filed their own “piggyback” actions in the CIT.
As the 2-year limitations period likely expires this upcoming Thursday, September 24th, I expect many more importers to file additional cases.
If you paid 25% duties under the Section 301 List 3 and List 4A duties and want to also preserve your opportunity to receive a future refund – contact David Hsu immediately by phone/text at 832-896-6288 or by email at firstname.lastname@example.org, email@example.com.
U.S. Customs and Border Protection (CBP) officers in Pittsburgh seized a shipment of 25 pacifiers with counterfeit marks of luxury brands such as Chanel and Mercedez Benz. In addition to bearing a registered mark, counterfeit products may also be manufactured using inferior quality of materials – such as lead paint with excessive lead paint levels. The pacifiers were bejeweled – causing CBP to note the poor quality workmanship may result in loose pieces breaking off and potentially choking a child that may ingest the pieces. If authentic, the pacifiers have a MSRP of $1,300.00.
If you have had your goods seized by Customs and you want to discuss your seizure options, contact David Hsu by phone/text at anytime at 832-896-6288 or by email at firstname.lastname@example.org.
Another day, another seizure by U.S. Customs and Border Protection (CBP) officers in LAX. The counterfeit shoes were from Hong Kong and labeled as “plastic ornaments”. Upon further examination, CBP officers found and seized 1,755 pairs of shoes with the Nike and Adidas branding.
Customs then worked with import specialists at the Apparel, Footwear & Textiles Center of Excellence and Expertise (Apparel Center) to verify authenticity. As 100% of the time that occurs – the shoes were determined to be counterfeit and seized by Customs. CBP valued the seizure, if authentic, at $207,000.
If you have had your good seized by Customs, contact seizure attorney David Hsu by phone/text at 832-896-6288 or by email at email@example.com.
Every importer of record needs to make declarations to Customs regarding tariff classification, valuation, origin of imported goods and more. Incorrect declarations can potentially lead to long term and expensive problems for the importer.
The NAFTA rules provided a method in which importers could seek guidance from Customs through an advance ruling to predetermine tariff classification, valuation, regional value issues, questions on qualifications of originating good, country of origin marking requirements, and more. NAFTA limited requests for guidance to only importers in the US and exporters and producers in Canada and Mexico who exported their goods to the US.
Fortunately, the new USMCA implemented several key changes. First, the USMCA not only allows an importer, but also allows an exporter, producer or anyone related to the trade transaction to request an advance ruling. Advance ruling requests are no longer limited to domestic residents.
Secondly, the USMCA agreement requires Customs to make a decision within 120 days – increasing transparency and predictability to the advance ruling process. Additionally, the USMCA also identifies the subjects that can be decided through ruling requests – tariff classification, customs valuation, origin of goods, quotas or “other issues agreed upon”.
Lastly, the USMCA offers increased protection in the event of customs modifying or revoking an advance ruling. Under the USMCA, an advance ruling cannot be revoked or modified if doing so will hurt the original ruling requester – unless the requester did not follow the advance ruling or the ruling was based on false information provided by the requester.
The best way to limit your USMCA import liability is to request an advance ruling – taking out the guesswork before the goods are shipped or entered into the US. Please do not hesitate to contact David Hsu by phone/text at 832-896-6288 or by email at firstname.lastname@example.org.
Another day, another seizure – this time in Chicago on July 28th. CBP officers found 555 counterfeit Nike and Air Jordan shoes, 462 Louis Vuitton branded handbags, totes, backpacks, 165 Gucci handbags, totes, wallets, 13 Beats headphones and 10 Apple Airpods.
The media release noted the poor manufacturing and packaging quality as an indication the goods may be counterfeit. The shipment from Hong Kong (likely another reason why Customs believes the goods are counterfeit).
Author’s note – Customs can detain a shipment for up to 5 days to verify the authenticity of the goods seized. In this instance, CBP asked the importer of record to produce documentation showing they were licensed to import trademarked goods. If an importer cannot show they have a license to import goods of a certain brand holder – then the goods will be seized and a seizure notice will be issued.
Also, if a shipment has been detained for suspicion of violating trademark or copyright violations – the 5-day detention rule does not apply. The reason the 5-day rule does not apply is because CBP will contact the property rights holder and ask if the importer has a license to import the goods. Very rarely will the trademark holder side with the importer.
If you have had your goods seized by Customs, contact David Hsu by phone/text at 832-896-6288 to discuss your options. You can also email David at email@example.com.
Another day, another U.S. Customs and Border Protection (CBP) counterfeit seizure. This time, officers in New Orleans seized more than $83K worth of counterfeit goods in early August.
The counterfeit goods include belts, wallets, backpacks, purses from brands such as Gucci, Hermes and Louis Vuitton. In addition, the shipment also contained 10 brush kits from the MAC brand.
CBP seized the goods under 19 USC 1526e for containing the counterfeit trademarks. If you or someone you know has had their shipment seized – contact David Hsu by phone/text at 832-896-6288, or email at firstname.lastname@example.org to discuss your options.
Earlier this past July, U.S. Customs and Border Protection (CBP) officers at one of our great nation’s biggest seaport of Los Angeles / Long Beach seized a large shipment of women’s sleepwear containing counterfeit brands such as Gucci, Facebook and Instagram.
2020 is a weird year indeed when we consider Facebook and Instagram to be a luxury brand. If authentic the 16,340 items of seized counterfeit pajamas (called “sleeping dresses”) would be worth an approximate retail value of $5.5 million.
CBP reported the counterfeit goods were concealed inside generic non-branded pajamas which CBP believes was intentionally packaged to avoid detection.
Author’s note – yes, in general if you pack counterfeit goods underneath unbranded goods, or try to conceal a counterfeit logo (such as using black tape to cover a logo), CBP will assume you are aware of the nature of the goods and are attempting to smuggle them into the US in violation of 19 USC 1595a (c)(1)(A), in other words merchandise that “is stolen, smuggled, or clandestinely imported or introduced“.
In addition to violating intellectual property rights of the trademark holder, CBP also claims counterfeit goods may not be in compliance with the U.S. Consumer Product Safety Commission (CPSC) requirements for flammability standards of sleepwear.
If you have had your shipment seized for alleged counterfeit violations or seized for alleged violations of CPSC consumer guidelines – contact seizure attorney David Hsu by phone/text at 832-896-6288 or by email at email@example.com.
According to a U.S. Customs and Border Protection (CBP) media release, San Juan Field Operations seized a shipment of 844 counterfeit alloy car wheels with an estimated manufacturer suggested retail price of approximately $238,000, if genuine.
The media release quotes CBP officials who claim counterfeit auto parts are safety risks for drivers as the fake rims do not meet industry wide safety standards. The seizure of counterfeit alloy wheels is just one of multiple seizures of car related parts – from fake air bags, fog lights and tires.
If CBP has seized your goods for suspicion of being counterfeit, contact seizure attorney David Hsu by phone/text at 832-896-6288 or by email at firstname.lastname@example.org.
U.S. Customs and Border Protection (CBP) officers at the O’Hare International Airport international mail facility seized medication from China. The medication made claims it could treat COVID-19, violating FDA laws and therefore seized by CBP. CBP seized a total of 9,600 capsules of “Lianhua Qingwen Jiaonang”. According to various sources online, Lianhua Qingwen Jiaonang is a combination of dozens of herbs in capsule form. According to CBP, the shipment contained an estimated value of $28,797.
If you have had your good seized by Customs, contact customs seizure attorney David Hsu by phone/text at 832-896-6288 or by email at email@example.com.