Have you received a US Customs Notice of Seizure? Here is some essential guidance as to what to do about it.
Introduction
If your business involves moving clothing or accessories bought in Europe or the UK for sale at less than the manufacturer's official retail price in the United States, you are parallel importing. If you are a parallel importer of goods, you might have received a Notice of Seizure Non-CAFRA form by US Customs.
The US Customs and Border Protection (CBP) have final authority in holding, examining, and detaining or seizing goods entering or exiting the US. When the CBP seizes goods, they will hold the goods in a bonded warehouse to await a case review from the Fines, Penalties and Forfeiture Office (FPF Office) of the CBP. Once the FPF Office decides, they will send a Notice Seizure to any party with potential interest in the seized goods containing the different options available concerning the seized goods.
Understanding the concepts of trademark law and parallel importing, including the law of exhaustion, is key to knowing which option to elect in the form.
19 US Code § 1526 - Merchandise bearing American trademark
US Code § 1526 (a) Importation Prohibited -There is a default prohibition, forfeiture and/or and seizure of any goods (US Code § 1526 (b) Seizure and Forfeiture ) imported into the US bearing an American trademark without a valid license from the registered trademark owner. Under Section 1526 of the USC regulations, it is unlawful to import foreign merchandise or foreign-manufactured merchandise if it bears a US registered trademark anywhere on the goods. US Code § 1526 (c) Injunction and Damages The CBP may enjoin an importer from dealing with the goods or order that the goods be destroyed and damages be paid.
US Code § 1526 (d) 1-4 Exemptions, Publication in Federal Register, Forfeitures, Rules and Regulations
Thes above provisions do not apply where the merchandise imported is accompanying any person arriving into the US, and the merchandise is for the person's personal use and not for sale. There are limits to quantities allowed on different types of merchandise to qualify for a personal use exemption and where no exemption was previously granted to the same person within a 30- day timeframe. Limiting the amount of merchandise you can bring in your baggage on a domestic flight acts to stop individuals circumventing import laws by flying in with merchandise regularly to allow the person to accumulate a quantity of the merchandise above personal use exemption.
Related Exemption Requirement
If any item imported into the US and allowed an exemption for personal use is sold within a year of import, duties will be required to be paid by the importer, subject to the goods being seized.
Seizure of Merchandise - US Code § 1526 (e) Merchandise bearing counterfeit mark; seizure and forfeiture; disposition of seized goods
In the absence of written consent from the trademark holder, customs will seize any merchandise deemed to bear a counterfeit mark, the legitimate version of which is a US registered trademark. If goods are seized, customs will inform the trademark owner, and the goods will be destroyed. Suppose the items in question are safe and do not present a health hazard, where the Secretary has the trademark owner's consent. In that case, they may obliterate the trademark were possible and dispose of the seized items either by delivering them to a federal, state, or local agency that might need such merchandise or by gifting it to a charity. If more than 90 days have passed since the forfeiture. Customs also has the right to auction the items for sale at a public auction in any circumstance where Customs cannot find other users for the items in line with requirement (i.e. charity or institutional use).
Civil Penalties
Fines are not valued higher than the merchandise is valued had it been genuine, in line with the manufacturer's suggested recommended retail price. Fines issued for second and subsequent seizures can be as high as twice the value of the manufacturer's RRP for original items.
If you receive a notification your options are as follows:
1. Put in a petition as to why the good should not be forfeited and request that CBP concludes those proceedings.
1.1 You can petition Customs to release your items within 30 days of seizure. You can dispute the seizure, try to negotiate for its release, or make other requests for relief. Petitions will require a description of the goods, the date and location of the seizure, and why you feel the items should not be seized. Customs will not begin any forfeiture proceeding until after the petition has been determined. Any relevant case law that you might be aware of could help your petition or other relevant statutes.
2. Make an offer in compromise.
2.1 You can offer a compromise to pay a fee to satisfy the fines or penalties that are incurred, and in certain circumstances, you may be able to include a release of goods in that compromise.
3. Abandon the property.
3.1 You allow the permanent seizure and destruction of the goods without any further input from you or notice. You will still be fined and be liable for redress.
4. Request the case be sent for court action.
4.1 You can request that the US Attorney intervene for a judicial hearing on the seizure. You will be required to post a bond of either 10% of the value of the seized goods, or $5,000.00, whichever is less.
5. Request administrative proceedings to forfeit the property.
Conclusion
If you import goods into the US from the UK or Europe, you will likely receive a seizure notification at least once. You do not have to panic as we have the expertise to guide you through the process of getting your merchandise released.
Introduction
If your business involves moving clothing or accessories bought in Europe or the UK for sale at less than the manufacturer's official retail price in the United States, you are parallel importing. If you are a parallel importer of goods, you might have received a Notice of Seizure Non-CAFRA form by US Customs.
The US Customs and Border Protection (CBP) have final authority in holding, examining, and detaining or seizing goods entering or exiting the US. When the CBP seizes goods, they will hold the goods in a bonded warehouse to await a case review from the Fines, Penalties and Forfeiture Office (FPF Office) of the CBP. Once the FPF Office decides, they will send a Notice Seizure to any party with potential interest in the seized goods containing the different options available concerning the seized goods.
Understanding the concepts of trademark law and parallel importing, including the law of exhaustion, is key to knowing which option to elect in the form.
19 US Code § 1526 - Merchandise bearing American trademark
US Code § 1526 (a) Importation Prohibited -There is a default prohibition, forfeiture and/or and seizure of any goods (US Code § 1526 (b) Seizure and Forfeiture ) imported into the US bearing an American trademark without a valid license from the registered trademark owner. Under Section 1526 of the USC regulations, it is unlawful to import foreign merchandise or foreign-manufactured merchandise if it bears a US registered trademark anywhere on the goods. US Code § 1526 (c) Injunction and Damages The CBP may enjoin an importer from dealing with the goods or order that the goods be destroyed and damages be paid.
US Code § 1526 (d) 1-4 Exemptions, Publication in Federal Register, Forfeitures, Rules and Regulations
Thes above provisions do not apply where the merchandise imported is accompanying any person arriving into the US, and the merchandise is for the person's personal use and not for sale. There are limits to quantities allowed on different types of merchandise to qualify for a personal use exemption and where no exemption was previously granted to the same person within a 30- day timeframe. Limiting the amount of merchandise you can bring in your baggage on a domestic flight acts to stop individuals circumventing import laws by flying in with merchandise regularly to allow the person to accumulate a quantity of the merchandise above personal use exemption.
Related Exemption Requirement
If any item imported into the US and allowed an exemption for personal use is sold within a year of import, duties will be required to be paid by the importer, subject to the goods being seized.
Seizure of Merchandise - US Code § 1526 (e) Merchandise bearing counterfeit mark; seizure and forfeiture; disposition of seized goods
In the absence of written consent from the trademark holder, customs will seize any merchandise deemed to bear a counterfeit mark, the legitimate version of which is a US registered trademark. If goods are seized, customs will inform the trademark owner, and the goods will be destroyed. Suppose the items in question are safe and do not present a health hazard, where the Secretary has the trademark owner's consent. In that case, they may obliterate the trademark were possible and dispose of the seized items either by delivering them to a federal, state, or local agency that might need such merchandise or by gifting it to a charity. If more than 90 days have passed since the forfeiture. Customs also has the right to auction the items for sale at a public auction in any circumstance where Customs cannot find other users for the items in line with requirement (i.e. charity or institutional use).
Civil Penalties
Fines are not valued higher than the merchandise is valued had it been genuine, in line with the manufacturer's suggested recommended retail price. Fines issued for second and subsequent seizures can be as high as twice the value of the manufacturer's RRP for original items.
If you receive a notification your options are as follows:
1. Put in a petition as to why the good should not be forfeited and request that CBP concludes those proceedings.
1.1 You can petition Customs to release your items within 30 days of seizure. You can dispute the seizure, try to negotiate for its release, or make other requests for relief. Petitions will require a description of the goods, the date and location of the seizure, and why you feel the items should not be seized. Customs will not begin any forfeiture proceeding until after the petition has been determined. Any relevant case law that you might be aware of could help your petition or other relevant statutes.
2. Make an offer in compromise.
2.1 You can offer a compromise to pay a fee to satisfy the fines or penalties that are incurred, and in certain circumstances, you may be able to include a release of goods in that compromise.
3. Abandon the property.
3.1 You allow the permanent seizure and destruction of the goods without any further input from you or notice. You will still be fined and be liable for redress.
4. Request the case be sent for court action.
4.1 You can request that the US Attorney intervene for a judicial hearing on the seizure. You will be required to post a bond of either 10% of the value of the seized goods, or $5,000.00, whichever is less.
5. Request administrative proceedings to forfeit the property.
Conclusion
If you import goods into the US from the UK or Europe, you will likely receive a seizure notification at least once. You do not have to panic as we have the expertise to guide you through the process of getting your merchandise released.
Introduction
If your business involves moving clothing or accessories bought in Europe or the UK for sale at less than the manufacturer's official retail price in the United States, you are parallel importing. If you are a parallel importer of goods, you might have received a Notice of Seizure Non-CAFRA form by US Customs.
The US Customs and Border Protection (CBP) have final authority in holding, examining, and detaining or seizing goods entering or exiting the US. When the CBP seizes goods, they will hold the goods in a bonded warehouse to await a case review from the Fines, Penalties and Forfeiture Office (FPF Office) of the CBP. Once the FPF Office decides, they will send a Notice Seizure to any party with potential interest in the seized goods containing the different options available concerning the seized goods.
Understanding the concepts of trademark law and parallel importing, including the law of exhaustion, is key to knowing which option to elect in the form.
19 US Code § 1526 - Merchandise bearing American trademark
US Code § 1526 (a) Importation Prohibited -There is a default prohibition, forfeiture and/or and seizure of any goods (US Code § 1526 (b) Seizure and Forfeiture ) imported into the US bearing an American trademark without a valid license from the registered trademark owner. Under Section 1526 of the USC regulations, it is unlawful to import foreign merchandise or foreign-manufactured merchandise if it bears a US registered trademark anywhere on the goods. US Code § 1526 (c) Injunction and Damages The CBP may enjoin an importer from dealing with the goods or order that the goods be destroyed and damages be paid.
US Code § 1526 (d) 1-4 Exemptions, Publication in Federal Register, Forfeitures, Rules and Regulations
Thes above provisions do not apply where the merchandise imported is accompanying any person arriving into the US, and the merchandise is for the person's personal use and not for sale. There are limits to quantities allowed on different types of merchandise to qualify for a personal use exemption and where no exemption was previously granted to the same person within a 30- day timeframe. Limiting the amount of merchandise you can bring in your baggage on a domestic flight acts to stop individuals circumventing import laws by flying in with merchandise regularly to allow the person to accumulate a quantity of the merchandise above personal use exemption.
Related Exemption Requirement
If any item imported into the US and allowed an exemption for personal use is sold within a year of import, duties will be required to be paid by the importer, subject to the goods being seized.
Seizure of Merchandise - US Code § 1526 (e) Merchandise bearing counterfeit mark; seizure and forfeiture; disposition of seized goods
In the absence of written consent from the trademark holder, customs will seize any merchandise deemed to bear a counterfeit mark, the legitimate version of which is a US registered trademark. If goods are seized, customs will inform the trademark owner, and the goods will be destroyed. Suppose the items in question are safe and do not present a health hazard, where the Secretary has the trademark owner's consent. In that case, they may obliterate the trademark were possible and dispose of the seized items either by delivering them to a federal, state, or local agency that might need such merchandise or by gifting it to a charity. If more than 90 days have passed since the forfeiture. Customs also has the right to auction the items for sale at a public auction in any circumstance where Customs cannot find other users for the items in line with requirement (i.e. charity or institutional use).
Civil Penalties
Fines are not valued higher than the merchandise is valued had it been genuine, in line with the manufacturer's suggested recommended retail price. Fines issued for second and subsequent seizures can be as high as twice the value of the manufacturer's RRP for original items.
If you receive notification your options are as follows:
1. Put in a petition as to why the good should not be forfeited and request that CBP concludes those proceedings.
1.1 You can petition Customs to release your items within 30 days of seizure. You can dispute the seizure, try to negotiate for its release, or make other requests for relief. Petitions will require a description of the goods, the date and location of the seizure, and why you feel the items should not be seized. Customs will not begin any forfeiture proceeding until after the petition has been determined. Any relevant case law that you might be aware of could help your petition or other relevant statutes.
2. Make an offer in compromise.
2.1 You can offer a compromise to pay a fee to satisfy the fines or penalties that are incurred, and in certain circumstances, you may be able to include a release of goods in that compromise.
3. Abandon the property.
3.1 You allow the permanent seizure and destruction of the goods without any further input from you or notice. You will still be fined and be liable for redress.
4. Request the case be sent for court action.
4.1 You can request that the US Attorney intervene for a judicial hearing on the seizure. You will be required to post a bond of either 10% of the value of the seized goods, or $5,000.00, whichever is less.
5. Request administrative proceedings to forfeit the property.
Conclusion
If you import goods into the US from the UK or Europe, you will likely receive a seizure notification at least once. You do not have to panic as we have the expertise to guide you through the process of getting your merchandise released.
Please contact Mr Peter Adediran or Ms Lucinda Dawson-Brown on 0207-305-7491 or send an email to peter@pailsolicitors.co.uk if you have any questions or queries regarding US Custom Seizures. Charge rates apply for our services.