Currency Seizure

U.S. Customs and Border Protection (U.S. Customs or CBP) seizes and forfeits hundreds of millions of dollars of merchandise every year.  The IRS, DEA, U.S. Postal Service, and other Federal agencies also have the legal authority to seize and forfeit merchandise that were allegedly used illegally or were proceeds of alleged illegal activity, but U.S. Customs administrative and judicial forfeiture procedures are unique.  The answer is that seizures by U.S. Customs typically are not included within the Civil Asset Forfeiture Reform Act of 2000 (CAFRA).

The difference between a seizure under CAFRA’s  rules under 18 U.S.C. 983 – The General Rules for Civil Forfeitures, and the U.S. Customs rules under the Tariff Act of 1930 and the Supplemental Rules of Admiralty, is significant. These significant differences are often misunderstood, including by attorneys who do not regularly practice in seizure and forfeiture matters.   Under CAFRA, the U.S. Government must send an administrative seizure notice to affected persons within 60 days of the seizure, but for U.S. Customs cases, there is no such requirement. In fact, unfortunately, U.S. Customs often takes 90 to days to issue the Seizure Notice letter to affected parties such as the owner of the seized merchandise. Under CAFRA, a claimant has 35 days from the date of the notice of seizure to file its administrative claim or request judicial forfeiture.  For U.S. Customs cases, the claimant must file a Petition within 30 days of the seizure notice or, if seeking judicial review of the seizure, file a claim and cost bond equal to 10% of […]