I want to report this design because its racially charged and where do I do this?

Email cup@cafepress.com

That does not guarantee action by CP (the image must violate image guidelines set by CP to be pulled - just because it's offensive to you personally is not reason enough for it to get pulled), but it will let the right people know.

Having no clue what the image is, that's all I can say. Please don't post a link to it though - just forward it to CP.