The scale of the counterfeit problem this holiday season

counterfeit problem this holiday season

CBP and its enforcement partners seize tens of millions of counterfeit items every year, from apparel and electronics to cosmetics, toys, and even medicines.

In its most recent update, CBP reported seizing nearly 79 million counterfeit items in a single fiscal year, with a notional retail value in the billions if those goods had been genuine. Counterfeit clothing, consumer electronics, toys, and medications were among the top categories seized.

At the same time, CBP and the U.S. Chamber of Commerce have expanded their “Shop Smart” campaign to educate the public on the dangers of fake goods and how to avoid them.

OECD data shows that small parcel channels, especially mail and courier shipments tied to e-commerce, account for the majority of seizures by volume, underscoring how online shopping has changed the risk profile.

For supply chain leaders, that means inbound small-parcel and e-commerce flows are now firmly in the spotlight.

The hidden risks behind “too good to be true” deals

CBP’s message to shoppers is simple: counterfeit goods are not harmless. They’re often dangerous, and they frequently fund criminal networks.

Common risks include:

  • Health and safety hazards
  • Fake medications with incorrect or harmful ingredients
  • Cosmetics and perfumes with toxic chemicals
  • Toys and children’s products with excessive lead or unsafe small parts
  • Electronics and auto parts that overheat, fail, or cause accidents
  • Economic and brand damage
  • Lost sales for legitimate manufacturers and retailers
  • Erosion of brand reputation when “fake” performance is blamed on the real company
  • Distorted competition when rogue sellers undercut compliant businesses

CBP also reminds consumers that importing counterfeit goods is illegal, and that even individual buyers can face penalties if they knowingly purchase fake products from overseas sellers.

 “Shop smart” and stay vigilant

This current CBP reminder fits into a multi-year push to give consumers practical tools to avoid counterfeit goods, particularly during the holiday shopping surge. Working with partners like the U.S. Chamber of Commerce, CBP promotes a “Shop Smart” checklist that any shopper can follow.

Key tips include:

Trust your instincts

If the price looks impossibly low, the website feels off, or the seller has no real history, treats it as a red flag.

Buy from trusted sources

Prioritize purchases directly from brands, authorized retailers, or reputable marketplaces with clear seller verification.

Check the URL and payment security

Look for https:// and the lock icon in your browser before entering payment details and avoid sites that feel cloned or poorly translated.

Inspect packaging and labels

When the product arrives, check for:

  • Misspellings or poor print quality
  • Missing safety seals
  • Strange odors, colors, or materials

Protect your data

Counterfeit sites may be designed to steal card data or install malware. Keeping devices updated and avoiding suspicious links is part of shopping safely.

Report on suspicious goods

Consumers can report suspected counterfeit activity through CBP’s trade violation channels or the National IPR Coordination Center, helping authorities target problem shipments.

What this means for importers, brands, and e-commerce sellers

For logistics and supply chain leaders, CBP’s holiday warning is also a compliance roadmap. The more public CBP is about counterfeit risks, the more aggressively it will enforce at the border.

Here are key actions for brands and importers:

1. Record your IP with CBP

If you own registered trademarks or copyrights, CBP’s e-Recordation Program allows you to register those rights so officers can more easily identify and detain counterfeit shipments at the border.

Recordation connects your IP data (logos, product images, known counterfeits) directly into CBP’s enforcement systems.

It’s a foundational step for any brand serious about fighting fakes in cross-border flows.

2. Tighten supplier and factory vetting

Work only with vetted manufacturers and distributors, and document:

  • Factory audits and certifications
  • Chain-of-custody for components and finished goods
  • Quality standards and testing protocols

For 3PLs and freight forwarders, this means knowing your customer (KYC) and understanding the goods you move, not simply shipping what’s handed to you.

3. Strengthen documentation and classification

CBP expects:

  • Accurate product descriptions and HTS classification
  • Proper valuation and country of origin declarations
  • Clear identification of legitimate brands vs. generic goods

Incomplete or sloppy documentation can increase inspection rates and make your shipments look riskier in CBP’s targeting systems.

4. Build brand-protection into your logistics strategy

Work with partners to:

  • Introduce serialization, QR codes, or other traceability features into packaging
  • Use tamper-evident seals and unique identifiers for high-risk SKUs
  • Align your reverse-logistics processes so suspected counterfeits can be segregated, investigated, and reported, not quietly re-circulated

How GLC helps you stay compliant and protect your brand

At Global Logistical Connections (GLC), we see what CBP sees: a rapidly growing volume of cross-border e-commerce parcels, more complex supply chains, and increased pressure on brands to protect consumers from unsafe and inauthentic products.

Through our integrated Customs Brokerage, Freight Forwarding, and Warehousing & Distribution services, we help importers and brand owners:

Navigate CBP rules and IPR enforcement

Our customs brokerage team monitors CBP updates, including counterfeit enforcement priorities, and guides clients through classification, valuation, and documentation to reduce compliance risk.

Design safer, more transparent supply chains

With strategically located warehouses across key U.S. markets, we support lot control, serialized inventory, and controlled fulfillment workflows that reinforce brand protection.

Align logistics with legal and brand teams

We collaborate with your internal stakeholders and legal counsel (or outside IP counsel) to ensure your logistics strategy supports your IP recordations, enforcement actions, and consumer-safety commitments.

As CBP intensifies its reminder to shoppers to “beware of counterfeits this holiday season,” now is the time for supply chain leaders to ask a parallel question:

Can our current import and fulfillment model stand up to CBP’s scrutiny, and protect our customers from fake goods?

If you’re unsure whether your current import and fulfillment model can stand up to CBP scrutiny, and protect your customers from counterfeit risk, GLC can help you review your flows, identify vulnerabilities, and design a compliant, brand-safe logistics strategy. If you need help with your next import, shipment, or customs filing, contact our team at [email protected].