US Customs Seizes $3.5 Million Worth of Counterfeit Jewelry from China

U.S. Customs and Border Protection (CBP) has intercepted a shipment of counterfeit luxury jewelry from China, with an estimated retail value of $3.5 million if the items had been genuine. The seizure was announced on March 10, following an operation conducted on February 20.

The shipment contained 660 fake designer jewelry pieces, including rings, bracelets, and necklaces imitating Van Cleef & Arpels’ “Alhambra” collection. The counterfeit goods were en route to a residence in Guaynabo, Puerto Rico, west of the capital, San Juan, according to a CBP press release.

Efrain Rivas, assistant director of Field Operations for Trade at the San Juan Field Office, warned that purchasing counterfeit luxury items fuels illicit activities such as money laundering, forced labor, and organized crime. He emphasized that counterfeit networks exploit workers, evade taxes, and undermine legitimate businesses while supporting human trafficking and the drug trade.

CBP urged consumers to be cautious when shopping for luxury goods, advising them to purchase only from authorized retailers and warning that significantly discounted prices often indicate counterfeits. The agency also noted that websites lacking contact details or clear return policies are often linked to counterfeit trade.

This seizure follows a major indictment announced on January 27 by the U.S. Attorney’s Office for the Central District of California, which charged eight suspects with smuggling counterfeit and illegal goods into the U.S. The accused, including executives from logistics firms, truck drivers, and warehouse owners, were allegedly part of a scheme that trafficked “hundreds of millions of dollars” worth of goods from China.

Their operation involved manipulating containers designated for inspection, replacing contraband with filler cargo, and resealing them with counterfeit security seals. The scheme is linked to approximately $1.3 billion worth of confiscated goods, with at least $200 million in counterfeit goods transported between August 2023 and June 2024.

A report released in January by the U.S. Trade Representative’s Office identified China as the world’s largest source of counterfeit goods. It found that 84% of the total retail value of counterfeit products seized by CBP in 2023 came from China and Hong Kong, with platforms like Alibaba’s Taobao, DHgate, Baidu, and Pinduoduo cited as key contributors.

The report also raised concerns over counterfeit pharmaceuticals, which often bypass safety regulations and lack proper oversight. These fake medications, sold online at discounted prices, pose serious health risks due to the absence of proper safety warnings and ingredient verification.

Beyond the U.S., counterfeit goods from China have also raised alarms in South Korea. In January, a South Korean laboratory found hazardous levels of toxic heavy metals in fake luxury items, including earrings, handbags, and wallets. The analysis of 83 counterfeit products revealed lead and cadmium levels far exceeding safe limits, with some items containing up to 930 times the permissible amount.

Among 24 luxury knockoff items tested—including imitation earrings labeled as Louis Vuitton, Dior, and Chanel—20 contained dangerously high cadmium levels, with some exceeding safe limits by 600 times. A fake Chanel brooch was found to have lead levels 153 times higher than the allowed threshold.

The findings highlight the growing risks associated with counterfeit products, not only in economic losses but also in health hazards for unsuspecting consumers.

Input from Agency.