CustomsBrokerLicenseExam

Home / Past exams / April 2026 / Question 8

April 2026, question 8

Broker Compliance · Restricted merchandise and intellectual property

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?

  1. $1,000 if this seizure is the importer’s first seizure under 19 USC 1526(e)
  2. $1,000 if this seizure is the importer’s second seizure under 19 USC 1526(e)
  3. $25,000 if this seizure is the importer’s first seizure under 19 USC 1526(e)
  4. $25,000 if this seizure is the importer’s second seizure under 19 USC 1526(e)
Show the answer and walk-through

CBP's answer: C. C: $25,000 if this seizure is the importer’s first seizure under 19 USC 1526(e)

For a first seizure under 19 USC 1526(e), the fine is not more than the value the merchandise would have had if genuine, by the manufacturer's suggested retail price at the time of seizure (133.27(a)). Here that is $25,000, so C is right. The $1,000 domestic value is not the measure, and the double amount applies only to the second and later seizures.

For the first seizure of merchandise under this section, 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. 19 CFR 133.27(a)

Search for: counterfeit mark civil fine

CBP's key cites: 19 CFR 133.27; 19 CFR 133.21

Question and key from CBP's April 2026 exam and answer key. The walk-through is ours; quotes are from the pinned editions in the reference viewer (HTSUS 2026 Basic, 19 CFR 2025 edition).