US CBP Foils Attempts to Smuggle Over $53 Million Worth of Fake Designer Products

 U.S. Customs and Border Protection (CBP) officers assigned to the Los Angeles/Long Beach Seaport in coordination with import specialists from the Consumer Products and Mass Merchandising (CPMM) and Apparel, Footwear and Textiles (AFT) Centers of Excellence and Expertise seized 39,243 counterfeit designer products arriving in two containerized cargo shipments from China.

CBP partnered with U.S. Homeland Security Investigations (HSI) special agents to seize the first shipment on July 19, and a second one on July 30, in independent smuggling attempts.

CBP officers discovered sandals, handbags, sneakers, hats, wallets, backpacks, mobile phone cases, and belts bearing numerous registered and recorded trademarks, such as Gucci, Dior, Chanel, Yves Saint Laurent, Louis Vuitton, Prada, Yeezy, Versace, Fendi, Balenciaga, Burberry, Chrome Hearts, Nike, Air Jordan, and Ferragamo.

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While these products historically have been sold on illegitimate
websites and in underground outlets, the rise of e-commerce
has offered a haven for criminals who are able to hide behind
seemingly legitimate listings.

If genuine, the seized merchandise would have had a combined estimated manufacturer’s suggested retail price (MSRP) of $53,745,802.

“The size of these fraudulent shipments clearly demonstrates the greed and risks transnational criminal organizations are willing to take in order to increase their illicit profits,” said Carlos C. Martel, Director of Field Operations in Los Angeles. “CBP officers remain vigilant, committed, and focused on disrupting these smuggling operations.”

While these products historically have been sold on illegitimate websites and in underground outlets, the rise of e-commerce has offered a haven for criminals who are able to hide behind seemingly legitimate listings.  The sale of counterfeit commodities multiplies the illegal profits of smugglers and traffickers who reinvest the proceeds from such sales into further criminal enterprises. 

Officer Gucci Handbag
The sale of counterfeit commodities multiplies the illegal profits
of smugglers and traffickers who reinvest the proceeds from
such sales into further criminal enterprises. 

“Illicit goods trafficked to American consumers by e-commerce platforms and online third-party marketplaces threaten public health and safety, as well as national security,” said Donald R. Kusser, Los Angeles/Long Beach Seaport Port Director. “Counterfeit goods unfairly compete with legitimate products and reduce the incentives to innovate, both in the United States and abroad.”

Consumers can take simple steps to protect themselves and their families from counterfeit goods:

  • Purchase goods directly from the trademark holder or from authorized retailers.
  • When shopping online, read seller reviews and check for a working U.S. phone number and address that can be used to contact the seller.
  • Review CBP’s E-Commerce Counterfeit Awareness Guide for Consumers.
  • Remember that if the price of a product seems too good to be true, it probably is.

Counterfeit apparel, footwear, and handbags are often of inferior quality and may feature poor or uneven stitching, fragile fabrics, and improperly sized or designed logos. Peeling labels, low-quality ink or printing errors on the packaging are also signs that products may not be legitimate.

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In Fiscal Year 2020, CBP personnel nationwide seized 26,503 shipments
containing counterfeit goods estimated to be worth
nearly $1.3 billion had they been genuine.

Trade in counterfeit and pirated goods threatens America’s innovation economy, the competitiveness of businesses, and, in some cases, national security and the health and safety of consumers. 

To deter the importation of illicit goods and protect U.S. consumers and businesses, CBP has developed a proactive, aggressive and dynamic enforcement approach to Intellectual Property Right (IPR) enforcement.

In Fiscal Year 2020, CBP personnel nationwide seized 26,503 shipments containing counterfeit goods estimated to be worth nearly $1.3 billion had they been genuine.

LV Purse
Counterfeit apparel, footwear, and handbags are often of inferior
quality and may feature poor or uneven stitching, fragile fabrics,
and improperly sized or designed logos.