How a $14.40 Purchase in China Became a $55,300 Fine in the U.S.

WWeek
Posted : 2007-05-07

Mike Korpi, a 55-year-old mechanic in Forest Grove, just faxed WW a series of documents that makes the U.S. Department of Homeland Security look like a homegrown terrorist organization . Pardon the overreaching sentiment here, but this really is pretty outrageous....

Here's the lowdown. In January, Korpi visited China and purchased eight fake Rolexes (in addition to four jade necklaces, five packs of cigarettes and some tea). The watches cost a total of $14.40, and Korpi dutifully declared them (and the other gifts) on his customs forms before landing in Portland.

While passing through customs at PDX, an official with the U.S. Department of Customs and Border Protection confiscated the counterfeit watches , and Korpi thought that was the end of it.

But here's the part of the story that now has Korpi feeling furious. On Friday, Homeland Security sent him a bill for $55,300 with this message:

"The remaining watches were determined to be counterfeit and infringed on the protected trademark of 'Rolex' and were seized for violation of 19 USC 1526(E), as implemented by 19 CFR 133.21(B) ... The statute (19 USC 1526) provides for a civil penalty to be assessed at the manufacturers suggested retail price (MSRP) of the seized goods had the good been legitimate. The MSRP value of the goods has been determined to be $55,300.00 and this penalty is being issued at that amount ."

Korpi doesn't know what his response will be. He has 60 days to pay the fine or file a petition to reduce the charges. He does have an attorney. "I don't know what's going to happen at this point," Korpi says. "It is outrageous; it's ridiculously outrageous."

Photo courtesy: dprieto