Fines, Penalties & Forfeitures
October 2023 — Question 66
For a first violation, from which value will CBP derive the assessed amount of a civil fine under 19 U.S.C. 1526(f) against any person who directs, assists financially or otherwise, or aids and abets the importation of merchandise for sale or public distribution that bears a counterfeit mark resulting in a seizure of the merchandise?
- AManufacturer's suggested retail price in the U.S. if genuine✓ CBP's answer
- BFair retail value in the country of shipment
- CForeign shipper's suggested retail price of the merchandise as imported
- DTransaction value as determined under 19 CFR 152.103.
Why this answer
The cited regulation implements the civil fine under 19 U.S.C. 1526(f) against persons who direct, assist financially or otherwise, or aid and abet the importation of merchandise seized for bearing a counterfeit mark. For a first violation, the fine may be no more than the value the merchandise would have had were it genuine, measured by the manufacturer's suggested retail price in the United States. The fine is therefore derived from the genuine-article MSRP, not from what the counterfeit goods actually cost or sold for. Transaction value tempts because it is the ordinary customs appraisement standard, but the counterfeit fine deliberately uses the higher genuine-goods retail measure to strip violations of profit. Watch for: Defaulting to transaction value, the ordinary appraisement standard, instead of the genuine-goods MSRP measure.
Original CBLE Simulator explanation — the question and key above are CBP's; this analysis is ours. Verify against the current edition before relying on it in practice.
CBP's cited authority
Answer and citations as published in CBP's official answer key for the October 2023 examination.
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