Civil Forfeiture

Question 1

Basic Property Law - Title

Answer 1

to property (real or personal) – Evidence of ownership
- Evidence by document 
example - car title, deed to house

Question 2

Legal Title

Answer 2

Refers to the right of ownership that is recognized in law

- Item paid in full - like full price of the car has been paid.

Question 3

Equitable Title

Answer 3

Right to acquire legal title under certain circumstances

Example: If the buyer of a car cannot pay full purchase price for the car and asks a bank for a loan to pay the seller the full selling price, then the buyer would obtain legal title to the car, but the bank would acquire an “equitable title” in the car until the buyer pays off the car loan to the bank.

Example: car used to smuggle dope, SA seizes vehicle. Once seized - Gov acquires equitable title to car then can submit it to forfeiture.

Example: mortgage

Question 4

Own/ownership

Answer 4

To have full claim, authority, power, and dominion over property. Property can be either real or personal

Real property – Non-moveable objects like houses, businesses, land, etc

Personal property – Moveable objects like cars, furniture, currency, contraband, weapons, etc

Question 5

Forfeiture defined

Answer 5

The process by which the government converts equitable title in property to legal title in that property

• for the government to forfeit an item the property must be used in a way that violates federal law and there must be a forfeiture statute in place
• 18 U.S.C. § 981 – general civil forfeiture

Question 6

In Rem proceeding

Answer 6

• Another name for Civil Forfeiture

- Action against the Thing

Question 7

In Personam proceeding

Answer 7

Another name for Criminal Forfeiture

- Action against the person

Question 8

Who makes the Declaration of Forfeiture? (In civil forfeiture)

Answer 8

Forfeiture can be decided by two primary entities:

1. Judicial Forfeiture – The court system decides- converts equitable title into legal tittle.
2. Non-Judicial Forfeiture – The agency decides; also called Administrative forfeiture

Question 9

Civil Asset Forfeiture Reform Act of 2000 (CAFRA)

Answer 9

• made significant changes to the civil forfeiture law and process
• kept in place certain civil forfeiture procedures used prior to implementation of CAFRA.
• Does not impact Criminal Forfeiture nor the tariff act of 1930
• CAFRA does NOT apply to Customs Civil Forfeiture. (doesn’t apply to tittle 19 forfeitures)

Question 10

What are two lawful ways to process civil forfeitures

Answer 10

• Customs and Non-customs (CAFRA)

Question 11

What is required under CAFRA but not under Customs

Answer 11

60 day notice of seizure

Question 12

Rental Car

Answer 12

Under forfeiture defense, falls under common carrier. Rental car company would be able to get the car back if seized

Question 13

Defense - Bona Fide Purchaser

Answer 13

• Someone buys car but doesn’t know it was used to smuggle.

- Made available by CAFRA

Question 14

Which of the following is available to a claimant in a non-customs (CAFRA) civil forfeiture but not in a customs civil forfeiture?
A) Claim filing deadline claim.
B) Notice of seizure.
C) Notice of intent to forfeit.
D) Right to court appointed counsel.

Answer 14

B - Notice of seizure

Question 15

Chinese made steel is being imported into the US, due to high tariff costs, they labeled it as originating from Cambodia. Can the steel be seized? Forfeited? If so under what?

Answer 15

yes, under 19 USC 1595a C 2 - Merch marked w/improper country of origin.

Question 16

Forfeiture under 19 U.S.C. § 1590

Answer 16

• Conveyances that are outfitted for smuggling may be forfeited.
• Example - secret compartment used for smuggling, or failure to stop, or vessel not using lights intentionally when required.
• Within 250 miles of territorial seas

Question 17

What statutes provide for possible common carrier defenses to forfeiture?

Answer 17

• 1594 b

- 1594 c

Question 18

A vessel is located an on board is counterfeit watches, stolen gems, and un-invoiced Merch. Which is subject to forfeiture under 1594 a a?

Answer 18

• The vessel.

Question 19

What is the name of a civil forfeiture action (i.e., against the thing)?

a. in personam forfeiture
b. in rem forfeiture
c. judicial forfeiture
d. non-judicial forfeiture

Answer 19

b. in rem forfeiture

Question 20

Mr. Hua Zhang imported the following items into the U.S. aboard the M.S. Golden Dragon: (1) 40 kilos of cocaine un-manifested and hidden in a container containing manifested, invoiced, and declared televisions; (2) 3,000 watches manifested, invoiced, and declared, but counterfeit; and (3) 14,000 extension cords manifested, invoiced, and declared, but listing the wrong country of origin in order to avoid a quota visa violation. What customs statute would you use to forfeit the 3,000 watches manifested, invoiced, and declared, but counterfeit?

a. 19 U.S.C. § 1595a (d)
b. 19 U.S.C. § 1595a (c)
c. 19 U.S.C. § 1594
d. 19 U.S.C. § 1595a (a)

Answer 20

b. 19 U.S.C. § 1595a (c)

Question 21

Which of the following defenses is available to a claimant in a non-customs (CAFRA) forfeiture but not in a customs forfeiture?
a. not used as alleged
b common carrier
c. bona fide purchaser for value
d. used while stolen

Answer 21

c. bona fide purchaser for value