U.S. Customs and Border Protection (CBP) announced on March 10 that it had intercepted a consignment of fake designer jewelry from China that, if authentic, would have been worth $3.5 million.

The package, which CBP officers intercepted on Feb. 20, comprised 660 counterfeit products such as rings, bracelets, and necklaces mimicking Van Cleef & Arpels’ “Alhambra” line. The jewelry, which originated in China, was intended for delivery to a residence in Guaynabo, located west of the Puerto Rican capital, San Juan, according to a CBP press release.

“Buying counterfeit luxury jewelry from China may seem like a bargain, but it often fuels criminal enterprises involved in money laundering, forced labor, and even organized crime,” said Efrain Rivas, assistant director of Field Operations for Trade at the San Juan Field Office.

“These counterfeit networks exploit workers, evade taxes, and undermine legitimate businesses while funding illicit activities such as human trafficking and drug trade. Every purchase supports an underground economy that thrives on deception and exploitation.”

CBP advised consumers seeking a bargain to only shop at trademarked outlets, authorized manufacturers, and official vendors.

The agency warned that products priced significantly lower than the market rate are likely counterfeit, explaining that “if a price seems too good to be true, then it probably is.”

CBP also noted that commerce websites that do not provide contact details and return and exchange policies could signal counterfeit trade.

The seizure follows a Jan. 27 press release by the U.S. Attorney’s Office of the Central District of California, which said it had arrested eight suspects in a 15-count indictment for smuggling counterfeit and illegal goods.

The defendants and co-conspirators included executives of logistics companies, truck drivers, and warehouse owners who were allegedly embroiled in a conspiracy to move “hundreds of millions of dollars” worth of goods from China to the United States.

Their modus operandi involved transporting containers designated for offsite inspection to other locations where the original seals were removed. The contraband inside was then replaced with “filler cargo” before the containers were resealed with counterfeit seals—a tactic linked to $1.3 billion worth of confiscated goods.

According to the U.S. Attorney’s office, the operation handled $200 million worth of goods between August 2023 and June 2024.

In January, the Office of the U.S. Trade Representative released its “2024 Review of Notorious Markets for Counterfeiting and Piracy,” which identifies China as the No. 1 source of counterfeit goods in the world.

“Counterfeit and pirated goods from China, together with transshipped goods from China to Hong Kong, China, accounted for 84% of the value (measured by manufacturer’s suggested retail price) and 90% of the total quantity of counterfeit and pirated goods seized by U.S. Customs and Border Protection (CBP) in 2023,” the report reads.

The report identifies Chinese companies—such as Alibaba’s Taobao, DHgate, Baidu, and Pinduoduo—as significant contributors.

The report also highlights the ongoing counterfeit drug problem America faces, noting that the issue thrives online, which creates an environment that is “fertile ground for illegal activity.”

“These websites may look legitimate, purportedly offering brand-name drugs at discounted prices, but they bypass regulations designed to protect consumers by operating without a license, selling medications without prescriptions, without safety warnings, and without proper oversight of the drugs being distributed,” the report reads.

South Korean newspaper Maekyung reported on Jan. 23 that a lab found Chinese counterfeit products containing carcinogenic levels of heavy metals.

After analyzing the ingredients of 83 products, the Korea Central Customs Laboratory documented items that made contact with the skin, like earrings and handbags, and noted they contained significant amounts of lead and cadmium—which, in some items, were 930 times higher than the permissible limit.

The investigation found that 20 out of 24 luxury knockoff items analyzed—including earrings from so-called Louis Vuitton, Dior, and Chanel—contained cadmium, a toxic substance also found in batteries. Fifteen of the earrings that contained cadmium exceeded the safe limit by as much as 600 times.

Lead levels were also found to be 153 times higher than the safe limit in a fake Chanel brooch, with similarly unsafe levels detected in counterfeit luxury bags and wallets.

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