Increasing Level of Seizures by U.S. Customs


Companies are reporting a significant increase in intellectual property seizures at U.S. ports in recent months, resulting in increased supply chain disruptions. Unfortunately, not all of this activity can be explained by more effective enforcement methods. More cases of erroneous seizure have also been observed, and some of these are attributable to difficulty in tracing the valid licensing authority for components incorporated in products that have been manufactured abroad.

Sadly, once the seizure process begins, it takes on a life of its own, with short deadlines, forfeitures and related procedures that present complexities of timing, jurisdiction and filing requirements. Before long, the cost of responding to an erroneous seizure can exceed the value of the individual shipment affected.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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