INTERNATIONAL TRADE LAW
Importing Counterfeits: The Legal Risk
Importing counterfeit goods — even unknowingly — exposes you to seizure of the merchandise, a civil fine that can reach the full retail value of the genuine article, and in knowing cases, federal criminal charges. The overseas seller who shipped the fakes is rarely the one who pays; under U.S. customs law, the importer in the United States carries the exposure. That makes a clear-eyed view of how counterfeits get caught, and what happens next, essential for anyone sourcing branded or brand-adjacent goods abroad.
What Counts as a Counterfeit at the Border
A counterfeit, for customs purposes, is merchandise bearing a mark that is identical to, or substantially indistinguishable from, a federally registered trademark — used without authorization. That is a narrower and more specific category than “knockoff” in everyday speech. CBP draws lines that matter:
- Counterfeit goods bear an unauthorized copy of a registered mark. These are seized and almost always forfeited and destroyed.
- Confusingly similar / infringing goods copy a mark closely but not identically. CBP may detain and seize these too, with the rights holder’s input.
- Gray-market goods are genuine articles imported outside authorized channels. They are sometimes restricted, but they are not counterfeit.
The classification drives the outcome, so the first question in any seizure is which bucket the goods fall into.
How CBP Catches Counterfeit Shipments
CBP’s enforcement runs on recordation. When a brand owner records its registered trademark or copyright through CBP’s Intellectual Property Rights e-Recordation system, the mark enters CBP’s targeting database. Officers and import specialists then screen shipments against those recorded rights, flagging suspect entries by shipper, country, value, and commodity. A flagged shipment is detained, examined, and — if the goods bear a counterfeit mark — seized under 19 U.S.C. § 1526(e).
The scale is significant. In fiscal year 2024, CBP reported more than 32 million infringing items seized, with an estimated genuine retail value of roughly $5.4 billion; handbags and wallets, apparel, and pharmaceuticals were among the most-seized categories. E-commerce and small-parcel volume have pushed much of this enforcement into the express and mail environments.
The Penalties Run From Lost Goods to Prison
The consequences escalate with culpability, and they are steep even for a first-time, unintentional importer:
| Consequence | Applies when | Authority |
|---|---|---|
| Seizure + destruction | Goods bear a counterfeit mark | 19 U.S.C. § 1526(e) |
| Civil fine | First seizure: up to genuine value (MSRP); later: up to 2× | 19 U.S.C. § 1526(f); 19 C.F.R. § 133.27 |
| § 1592 penalty | Entry made by material false statement (e.g., false description) | 19 U.S.C. § 1592 |
| Criminal charges | Knowing trafficking in counterfeit goods | 18 U.S.C. § 2320 |
The civil fine is the part that surprises importers. Because it is measured against what the genuine item would sell for at retail — not what the counterfeit cost — a single seized container of fake branded goods can generate a fine far larger than the importer’s entire investment. For the detailed mechanics of these fines and the recordation system, see our companion guide to CBP intellectual property penalties.
What to Do If CBP Detains or Seizes Your Goods
A detention is not yet a seizure, and a seizure is not the end of the road. The process gives the importer defined opportunities to respond:
- Detention notice. CBP holds the goods and notifies the importer, who can submit information showing the goods are authentic or authorized.
- Seizure notice. If CBP seizes, it sends a notice describing the goods, the basis, and the importer’s options.
- Petition for relief. The importer can petition the Fines, Penalties, and Forfeitures office to contest or mitigate, the same track used for other customs seizures and penalties.
- Court of International Trade. Contested matters can ultimately be litigated.
Speed matters. Response deadlines are short, and a documented, prompt response — proof of authorization, supplier records, or evidence the goods are genuine — is the best chance to stop a detention from becoming a fine.
Staying Clear of Counterfeit Exposure
- Know your supply chain. Counterfeits most often enter through unfamiliar suppliers and marketplaces; vet sellers and demand authorization for any branded goods.
- Get authorization in writing. A licensing agreement or authorized-distributor letter is your defense if CBP questions a shipment.
- Describe goods accurately on entry. A false or vague description can layer a § 1592 penalty on top of the IP seizure.
- Treat IP as a compliance line item. Fold trademark checks into your written import compliance program.
Frequently Asked Questions
Can I be penalized if I did not know the goods were counterfeit? Yes. Seizure and the civil fine under § 1526(f) can apply regardless of intent. Criminal liability under 18 U.S.C. § 2320 requires knowing conduct, but the civil exposure does not.
Will CBP just send the goods back? Usually not. Counterfeit goods are typically forfeited and destroyed rather than returned or re-exported.
How large can the fine be? For a first seizure, up to the value the goods would have had if genuine (MSRP). For subsequent seizures, up to twice that value.
What is the difference between counterfeit and gray-market goods? Counterfeits bear unauthorized copies of a registered mark and are always barred. Gray-market goods are genuine articles imported outside authorized channels; they are sometimes restricted but are not counterfeit.
Did CBP seize a shipment as counterfeit? Reidel Law Firm prepares flat-fee import/export compliance memos and represents importers in seizure petitions and IP customs matters with direct attorney access. Get an import compliance memo →
