Why CBP Seizes Millions of Counterfeit and Pirated Goods Each Year

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U.S. Customs and Border Protection (CBP) plays a central role in protecting the U.S. public and the nation’s economic security. One of the ways it does this is by stopping counterfeit and pirated goods before they enter the country. In the last fiscal year, CBP seized more than 32 million infringing items, and if those goods had been genuine, their retail value would have exceeded $5.4 billion. The majority of these seizures came from shipments originating in China and Hong Kong, and a significant portion of them arrived through low-value, high-volume de minimis channels. This means that many of the intercepted items were small shipments entering outside the traditional entry process.

CBP’s mandate allows it to examine, detain, seize, forfeit, and ultimately destroy goods that violate intellectual property laws. The agency does not need a complaint from a rights holder to take action, and in most cases, it does not need proof that the importer acted intentionally. CBP’s enforcement is civil and directed against the goods themselves rather than the business or individual importing them. Even legitimate companies with compliant track records can find their shipments held or seized if something in the supply chain raises concerns.

The agency’s jurisdiction extends to every type of entry, whether formal, informal, trans-shipment, in-transit, or through a Foreign Trade Zone or bonded warehouse. This broad reach means that businesses cannot assume that lower-value shipments or goods moving through special programs are exempt from scrutiny. A single shipment flagged by CBP can disrupt an entire supply chain, delay customer deliveries, create storage or demurrage costs, and strain relationships with suppliers or logistics partners.

Because CBP’s authority is so expansive, businesses importing any type of branded or creative product should be aware of the risks. Many companies first learn about CBP’s intellectual property enforcement only after receiving a detention notice or seizure letter. By that point, the situation is already time-sensitive.

If you or your business has received a seizure notice, penalty notice, detention notice, or any other enforcement action from CBP, our firm can help. Give our office a call today at (917) 546-6997 or schedule an intake meeting, we would be happy to speak with you.

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