COPS CONFISCATED $1 MILLION WORTH OF FUGAZIE ALL DAZIE BAGS ON CANAL STREET!

Fork over that Fendi.

The city confiscated $1 million in counterfeit handbags and other faux goods in Chinatown on Tuesday, angering bargain-hunters.

"We just aren't going to have any tolerance for people selling knockoffs," Mayor Bloomberg said.

Cops shut down 10 buildings along Canal St. housing 31 stalls brimming with watches, wallets and bags. The accessories were knockoffs of Chanel, Gucci, Coach and Cartier.

"There is nothing wrong with somebody getting a less expensive product," Bloomberg said. "But you can't use the name of a more expensive product and sell it as though that is what it was."

Cash-strapped shoppers were surprised to see shuttered storefronts.

"They sell me watches at affordable prices," said Cookie Lubin, 57, an administrative assistant from Brighton Beach, Brooklyn. Pointing to a black Chanel watch with fake diamonds on her wrist, she said, "Good thing I got this yesterday."

Dawn Wheeler, 40, a nurse from Raleigh, N.C., was looking for Chanel sunglasses for her daughter.

"I hear you can go down Canal and get a Coach bag," she said.

Agents from the Mayor's Office of Special Enforcement and NYPD got a search warrant after they repeatedly bought phony items. There were no arrests in the predawn raid between Broadway and Church St.

Neighbors were skeptical that the crackdown will end the notorious knockoff trade.

"In another two days, these guys, once the cops leave, they'll be bringing their stands back to sell illegal goods," said Joe Saf, 38, owner of Taj Mahal Audio and Car Stereo, a store next to one of the raided storefronts.