March 11 (UPI) — U.S. Customs and Border Protection said on Monday it seized counterfeit designer watches at the Port of Louisville with retail value of more than $11.7 million.
The de minimis shipment contained 35 fake designer watches, which arrived from Hong Kong with the protected trademark of Richard Mille. The watches were on their way to Puerto Rico and originally stopped by Customs officers on March 6.
The de minimis shipments, by statute, provide an admission of articles free of duty of any tax imposed. De minimis shipments are, as the Latin phrase notes, minor ones that typically are of little importance. De minimis shipping rules apply to one person per day, and individuals typically are exempted from paying a duty of more than $800.
“Criminals are trying to exploit the mail environment by peddling their counterfeit products,” La Fonda D. Sutton-Burke, director of field operations in U.S. Customs Chicago office. “Even though this package had a low declared value, they pose the same potential health, safety, and economic security risks as larger and more traditional containerized shipments.”
Sutton-Burke said suspects trying to circumvent mailing rules have become commonplace, keeping Customs investigators on their toes.
“I am very proud of our officers recognizing these counterfeits and addressing the challenges faced in the de minimis environment,” she said. “Every day, CBP officers are seizing these fraudulent de minimis shipments sent by bad actors.”
Officials said criminals are trying to take advantage of the unprecedented volume of e-commerce shipments entering the United States and the global supply chain to get more illegal shipments through the small-package environment.
Customs said they believe that 90% of shipments coming into the United States are now entering through the small package environment. From 2015 to 2023, de minimis transactions have increased from 135 million to 1 billion, a 646% growth in eight years, making spotting fake a challenge for agents.
