Smuggling Counterfeit Goods

100 Asian nationals have been arrested by federal authorities on charges of smuggling counterfeit money, drugs, and cigarettes into the United States.^[1] The arrests, part of an undercover investigation that led to the discovery of cargo containers carrying the contraband items in Los Angeles and Newark, were made in Chicago, Los Angeles, and Atlantic City.^[2] A formal announcement is expected later in the day.^[3] Smuggling contraband items is a serious transnational crime.

Trafficking in Contraband Cigarettes
Trafficking in contraband cigarettes is criminalized by 18 U.S.C. §§ 2341 et seq. Under section 2342, it is illegal for a person to knowingly ship, transport, receive, possess, or distribute contraband cigarettes.^[4]

The penalty for violation section 2342(a) is a fine, imprisonment for up to five years, or both.^[5]

"Contraband cigarettes" is defined as a quantity in excess of 60,000 cigarettes, which bear no evidence of the payment of applicable cigarette taxes in the State in which the cigarettes are found.^[6]

Smuggling Narcotics
We have previously discussed narcotics smuggling, here.

Smuggling Counterfeit Money
Counterfeit currency crimes are criminalized by 18 U.S.C. §§ 470 et seq. It is a crime for a person, who has the intent to defraud, to create counterfeit currency.^[7] If the creation of the counterfeit currency occurred outside of the United States, the punishment for that act will be the same as if it had occurred in the United States.^[8] Likewise, it is a crime for any person to bring counterfeit currency into the United States.^[9]

The punishment for creating counterfeit currency or importing counterfeiting currency is a fine, imprisonment for up to 20 years, or both.^[10]

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[1] Mark Sherman, Counterfeit Money, Drugs, Cigarettes in Cargo Containers Leads to 100 Arrests, Officials Say, Associated Press, Aug. 22, 2005, available here.
[2] Id.
[3] Id.
[4] 18 U.S.C. § 2342(a).
[5] Id. § 2344(a).
[6] Id. § 2341(2).
[7] Id. § 471.
[8] Id. § 470.
[9] Id. § 472.
[10] Id. §§ 471, 472.