What is the maximum civil fine CBP may impose after the seizure of merchandise imported for sale when the merchandise is seized pursuant to 19 USC 1526(e) for bearing a counterfeit mark, has a domestic value of $1,000, and would have a manufacturer’s suggested retail price (MSRP) of $25,000 in the United States at the time of seizure if it had been genuine?
How to get there
Two variables decide the maximum fine: which value it's based on, and whether it's a first or later seizure.
19 CFR 133.27(a)–(b)(a) First violation. For the first seizure … the fine imposed will not be more than the value the merchandise would have had if it were genuine, according to the manufacturer's suggested retail price in the United States at the time of seizure.
(b) Subsequent violations. For the second and each subsequent seizure … the fine imposed will not be more than twice the value the merchandise would have had if it were genuine, according to the manufacturer's suggested retail price …
(b) Subsequent violations. For the second and each subsequent seizure … the fine imposed will not be more than twice the value the merchandise would have had if it were genuine, according to the manufacturer's suggested retail price …
The basis is the MSRP of the genuine goods: $25,000, not the $1,000 domestic value of the fakes. For a first seizure the cap is 1 × MSRP = $25,000. That's C.
Why the other choices are wrong
A) and B) $1,000: these use the domestic value of the counterfeit goods. § 133.27 uses what the goods would have been worth if genuine, at MSRP.
D) $25,000 on a second seizure: a second or later seizure doubles the cap to 2 × MSRP, which would be $50,000.
Trap!
The question gives you two values on purpose. For counterfeit-mark fines, always use the MSRP of the genuine article: ×1 for the first seizure, ×2 for each one after.
Sources: 19 CFR 133.27; 133.21(a) (eCFR).
CBP answer key: Answer C · 19 CFR 133.27; 19 CFR 133.21Source: CBP past exams ↗