The U.S. Customs and Border Protection (CBP) recently intercepted a shipment of 35 counterfeit designer watches on its way to Puerto Rico. Originating from Hong Kong, the shipment was estimated to be worth more than $11.7 million.
The seized watches bore the protected trademark of Richard Mille. The CBP Centers of Excellence and Expertise scrutinized the shipment and concluded that, had the watches been genuine, their value would have exceeded $11.7 million.
"Every day CBP officers are seizing these fraudulent de minimis shipments sent by bad actors. Criminals are trying to exploit the mail environment by peddling their counterfeit products. 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. I am very proud of our officers recognizing these counterfeits and addressing the challenges faced in the de minimis environment," stated LaFonda D. Sutton-Burke, director of field operations in the Chicago Field office of CBP.
According to CBP definitions, the shipment was classified as de minimis - a duty- and tax-free shipment with a fair retail value in Hong Kong not exceeding $800.
Authentic Richard Mille watches are retailed under more than 40 different brands with prices ranging between 625,000 pounds and 2,500,000 pounds according to information available on the brand’s website. This translates to a value range of $7,887.50 to $315,550.00.
CBP notes that the rise in e-commerce has paved way for individuals to smuggle illicit goods into the country. Almost ten years ago, CBP’s Centers of Expertise and Excellence processed 134 million de minimis transactions; however, as per data from 2023, CBP now processes over a billion such packages marking an increase of more than 640% in eight years. This information was released in CBP’s March 11 news release which announced the seizure of the counterfeit watches. Furthermore, as of Jan. 31, 2024, the organization has processed more than half a billion de minimis shipments.
CBP further explains that the Centers of Excellence and Expertise are located at specific Ports of Entry and are industry-focused, aligned to ten specific industry sectors. These centers are strategically positioned in Los Angeles, San Francisco, Laredo, Houston, Miami, Atlanta, Chicago, Detroit, New York and Buffalo.
