Is importing gray market goods illegal?

Not categorically. Genuine goods identical to the U.S. version can often be imported lawfully, especially under the common-control exception or with the trademark owner’s consent. Goods that are physically and materially different from the U.S. version can be excluded, seized, or barred under 19 CFR 133.23 and Lanham Act §42 when the U.S. trademark owner has recorded its mark and claimed Lever-rule protection.

Can CBP seize genuine products that aren't counterfeit?

Yes. CBP seizes genuine but materially different gray market goods when the recorded trademark owner has Lever-rule protection, and the importer’s disclosure-labeling cure under 19 CFR 133.23(b) is narrow. “It’s the real product” is not a defense by itself.

Does patent exhaustion protect gray market imports?

Only on the patent side. Impression Products v. Lexmark (2017) established worldwide patent exhaustion after an authorized first sale, but trademark-based restrictions — the Lever-rule and §1526 — are the tools brand owners actually use at the border, and exhaustion does not displace them.

How do I value used or refurbished goods for customs?

Start with transaction value — what you actually paid — and keep the invoices, auction records, and payment proof to defend it. Low declared values on used goods attract undervaluation scrutiny, so documentation is the whole game. If there is no reliable transaction value, the statutory fallback methods apply in order.

What is the single biggest mistake gray market importers make?

Assuming genuineness equals admissibility. The product can be completely real and still be detained because it is materially different from the U.S. version, incorrectly valued, misclassified, or non-compliant with FDA, FCC, or EPA requirements for the U.S. market. Gray market and used-goods sourcing can be a legitimate, profitable model — but only when the trademark posture, valuation file, classification, and partner-agency clearances are worked out before the shipment leaves. Reidel Law Firm’s flat-fee Import / Export Compliance Memo gives you a written, shipment-specific analysis of those issues for $2,499, so you find out whether your goods are admissible before CBP does. Get an import compliance memo.

INTERNATIONAL TRADE LAW

Importing Gray Market and Used Goods: What to Know