Subheadline: U.S. Customs and Border Protection and FedEx uncover approximately 500 fake luxury watches worth $12 million in a high-stakes operation at a Newark hub
Date: June 9, 2025
Smart Tech Catch
The discovery unfolded during a routine screening at the Newark facility, a critical hub for FedEx’s East Coast operations. Advanced X-ray imaging flagged the shipment for irregularities, revealing densely packed contents that didn’t align with its declared label of “costume jewelry” valued at a mere $600. FedEx’s trained security personnel escalated the matter, and within hours, CBP’s Intellectual Property Rights (IPR) Enforcement Team was on-site, wielding specialized tools to dissect the package.
Using cutting-edge techniques—such as ultraviolet light analysis to detect forged engravings and precision scales to weigh components—officers confirmed the watches were fakes. “The craftsmanship was eerily convincing,” said CBP Senior Officer Emily Chen. “These weren’t cheap knockoffs sold on street corners. The counterfeiters used high-grade materials to fool even seasoned buyers, but our training and technology caught the flaws.”
CBP Area Port Director Michael Torres praised the collaboration, stating, “FedEx’s vigilance was the linchpin here. Their screening caught what could have slipped through, protecting consumers and legitimate businesses from a flood of fakes.”
Clever Smuggling Plan
The shipment’s origins trace back to a manufacturing hub in East Asia, though CBP withheld specifics to protect the ongoing investigation. Authorities revealed the cargo followed a convoluted international route, passing through multiple countries to obscure its trail. “This was a calculated operation,” Torres explained. “Counterfeiters are exploiting global logistics networks, using legitimate shipping channels to mask their activities. But we’re adapting faster than they can pivot.”
Investigators suspect the shipment was intended for a distribution network operating in the Newark area, possibly linked to online marketplaces or underground resellers. “The scale of this haul suggests a well-organized operation,” said Torres. “We’re working to uncover every link in the chain.”
Non-Stop Investigation
The seizure has triggered a sprawling investigation involving CBP, the Department of Homeland Security’s Investigations (HSI) unit, and the FBI. Agents are combing through financial records, shipping manifests, and digital footprints to unmask the culprits. Early leads point to a well-funded counterfeiting syndicate operating out of Asia, with possible ties to U.S.-based distributors. “We’re not stopping at the seizure,” said HSI Special Agent Ryan Caldwell. “Our goal is to dismantle the entire network, from the factories to the final sellers.”
Legal consequences for those involved are severe. Under the U.S. Trademark Counterfeiting Act, importing counterfeit goods can lead to seven years in prison and $2 million in fines per violation. If ties to organized crime are proven, penalties could escalate under racketeering statutes. Businesses complicit in the scheme face crippling sanctions, including seizure of assets and permanent bans from U.S. markets.
Strong Team Effort
The Newark bust is a high-water mark for CBP-FedEx collaboration. In 2024, FedEx’s security protocols led to the interception of $200 million in counterfeit goods nationwide, from fake handbags to pirated electronics. The company’s investment in AI-driven screening and employee training has made its facilities a formidable barrier to smugglers. “We’re proud to partner with CBP,” said FedEx Regional Security Manager David Alvarez. “Every interception like this keeps our communities safer and our markets fairer.”
As e-commerce surges—projected to hit $7 trillion globally by 2026—such partnerships are vital. The Newark seizure sends a clear message: counterfeiters may be cunning, but the net is tightening.
For more information or to report counterfeit goods, visit www.cbp.gov or call 1-800-BE-ALERT. Tips can also be submitted anonymously via the DHS tip line at 1-866-DHS-2-ICE.
