Importing Counterfeit Goods: CBP Seizures, Penalties, and Personal Use

If you bring counterfeit merchandise into the United States, Customs and Border Protection can seize it at any port of entry, destroy it, and pursue you for civil fines or criminal charges. A narrow exception lets a returning traveler keep one counterfeit item of each type carried in personal luggage, but that exception does not cover anything mailed, shipped, or ordered online from an overseas seller. In short, importing counterfeit goods is generally unlawful, and the personal-use carve-out is far smaller than most people assume.

What CBP Can Seize and Why

Two federal statutes give CBP officers broad seizure authority. Under 19 U.S.C. § 1526, any imported merchandise bearing a counterfeit version of a federally registered trademark is subject to seizure and forfeiture.¹ A second statute, 19 U.S.C. § 1595a, extends that authority to copyright and trade name violations, covering pirated software, counterfeit electronics, and knockoff packaging as well as the familiar fake luxury goods.²

The authority applies no matter how the goods arrive. Officers inspect cargo containers, international mail, express courier packages, and personal luggage. Once an item is confirmed to bear a counterfeit mark, the government takes ownership through forfeiture, and seized items are typically destroyed or stripped of their infringing branding so they cannot re-enter commerce.

A counterfeit mark, in legal terms, is a fake mark that is identical to, or so close to the real one that an ordinary person could not tell the difference from, a mark registered with the U.S. Patent and Trademark Office.³ That is the standard that triggers the mandatory seizure rule.

The Personal Use Exemption for Travelers

Travelers returning to the United States with a counterfeit item in their luggage can sometimes avoid seizure under 19 C.F.R. § 148.55. The regulation allows an arriving traveler to bring in one article of each type bearing a counterfeit mark, provided the item is for personal use and physically accompanies the traveler.⁴ The same rule applies to one piratical article of each type, so a single trip could include one counterfeit handbag and one pirated DVD without penalty.

The exemption comes with three strict limits:

A traveler cannot claim the exemption for the same type of article more than once in any 30-day period. A counterfeit watch brought in last week means a counterfeit watch brought in this week will be seized.
Selling the exempted item within one year of importing it makes the item, or its value, subject to forfeiture.
The item must be in the traveler’s accompanied baggage. Goods shipped separately, ordered online from overseas sellers, or arriving through international mail do not qualify.

That last limit is the one most people miss. Ordering a single fake designer bag from an overseas website for personal use is not covered by this exemption, and CBP will treat the shipment the same way it treats any other counterfeit import.

Why Online and Mail Orders Are Different

When CBP finds a counterfeit item in an international mail shipment or courier package, it is seized under the same statutes that apply to commercial cargo.¹ The buyer receives a seizure notice and faces the same forfeiture process, along with potential civil penalties. Not knowing the item was counterfeit may reduce a penalty later, but it does not stop the seizure. The goods are gone, and whatever was paid for them is lost.

Civil Penalties for Commercial Importation

When counterfeit goods are imported for sale or public distribution, federal authorities can fine anyone who directed, financed, or assisted the importation. The fine ceiling is tied to the manufacturer’s suggested retail price of the genuine product.¹

First seizure: up to the full retail value of the genuine version. A shipment of fake luxury watches can produce a fine in the tens of thousands of dollars if the authentic watches retail at that level.
Second seizure and beyond: the cap doubles, to twice the retail value of the genuine goods.

These are ceilings, not automatic amounts. CBP weighs the specific circumstances in setting the final penalty.

Under CBP’s mitigation guidelines, factors that may reduce a fine include not knowing the goods were counterfeit, a clean import history, inexperience with the import process, full cooperation during the investigation, and documented inability to pay.⁵ Aggravating factors include more than two prior seizures, related criminal conduct, and submission of falsified documents such as fake country-of-origin labels or false product descriptions. Doctored paperwork is where a civil case tends to turn into a criminal referral.

Criminal Penalties Under 18 U.S.C. § 2320

Commercial importation of counterfeit goods can also trigger federal criminal charges, and the exposure is substantial.

First offense, individual: up to $2 million in fines, up to 10 years in prison, or both.
First offense, corporation: up to $5 million in fines.
Repeat offense, individual: up to $5 million in fines, up to 20 years in prison, or both.
Repeat offense, corporation: up to $15 million in fines.⁶

When counterfeit goods cause serious bodily injury, the individual maximum rises to $5 million and 20 years. If a counterfeit product causes a death, an individual can face life in prison. Counterfeit military equipment and counterfeit drugs sit in their own tier, with penalties of up to 20 years for a first offense and 30 years for a repeat, and fines reaching $15 million for individuals and $30 million for corporations.⁶

Not every seizure becomes a criminal case. Prosecutors tend to focus on large shipment volumes, repeat offenders, organized distribution networks, and situations where money laundering can be proved alongside the counterfeiting charges.

What Happens After a Seizure

When CBP seizes goods that do not qualify for the personal use exemption, the agency sends the importer a written notice explaining the legal basis for the seizure and the right to seek relief.⁷ The response deadline appears in the notice itself and cannot be earlier than 35 days after the notice is mailed. If the notice is never received, a claim can still be filed within 30 days of the final publication of a public forfeiture notice. Missing the deadline generally means the goods are forfeited to the government with no further review.

The seizure notice usually includes an Election of Proceedings form. The main options are:

File a petition for relief. This is a written request asking CBP to return the goods or reduce the fine. The petition must describe the seized property, state the date and place of the seizure, explain the facts the petitioner relies on, and prove a legal interest in the property. No special form is required, but everything must be in English or accompanied by a translation.⁸
Submit an offer in compromise. This proposes a settlement amount to resolve the case without a full hearing, which can work when the importer accepts the violation but wants to negotiate down the financial penalty.
Abandon the property. The importer gives up any claim to the goods. Abandonment ends the fight over the items but does not automatically cancel civil fines that have already been assessed.

False statements in a petition can bring criminal prosecution under 18 U.S.C. § 1001.⁸ Claiming ignorance about the goods when records show otherwise will make the situation considerably worse.

Losing Global Entry and Other Trusted Traveler Status

One consequence that surprises travelers is the revocation of Global Entry, NEXUS, SENTRI, or TSA PreCheck enrollment. Trusted Traveler Programs rest on the expectation that members comply with all customs, agriculture, and immigration laws, and getting caught with counterfeit goods breaks that expectation. CBP can revoke membership as a result.⁹ The lost application fee is a minor part of it. The real cost is going through standard inspection lines on every future trip.

If your membership is revoked, you can request reconsideration through the Trusted Traveler Programs website. The request must include the date and reason for the denial as stated in your notification letter, a written summary of the circumstances, and court documentation for any arrests or convictions. CBP does not publish a guaranteed timeline for these reviews.¹⁰

1
Office of the Law Revision Counsel. 19 USC 1526 – Merchandise Bearing American Trade-Mark
2
Office of the Law Revision Counsel. 19 USC 1595a – Aiding Unlawful Importation
3
Office of the Law Revision Counsel. 15 USC 1127 – Construction and Definitions
4
eCFR. 19 CFR 148.55 – Exemption for Articles Embodying Counterfeit Marks or Piratical Copies
5
U.S. Customs and Border Protection. Mitigation Guidelines: Fines, Penalties, Forfeitures and Liquidated Damages
6
Office of the Law Revision Counsel. 18 USC 2320 – Trafficking in Counterfeit Goods or Services
7
eCFR. 19 CFR 162.31 – Notice of Fine, Penalty, or Forfeiture Incurred
8
eCFR. 19 CFR 171.1 – Petition for Relief
9
U.S. Customs and Border Protection. Trusted Travelers’ Knock-Offs Knock Them off Global Entry
10
U.S. Customs and Border Protection. Trusted Traveler Program Denials