Defense in Smuggling & Anti-Dumping Duty Evasion Cases | Customs & European Public Prosecutor's Office

Investigations under customs criminal law frequently involve complex legal issues and pose significant risks to those involved. The potential consequences range from severe penalties to measures designed to seize assets. For this reason, specialized legal representation from the very beginning is crucial to safeguarding your rights and developing an effective defense strategy.

What is an antidumping duty, and why is it imposed?

An antidumping duty is a protective tariff imposed by the European Union on goods that are sold on the European market at an artificially low price ("dumping price"). This is intended to protect domestic manufacturers from unfair competition.

Customs investigations aim to identify importers (e.g., from China) who—as is frequently alleged—attempt to evade these duties. Typical allegations include:

• False declaration of the origin of goods: A country of origin is declared that is not subject to the antidumping duty (e.g., Myanmar instead of China).
• Concealment via Third Countries: The goods are routed through a third country to conceal their true, dutiable origin.
• Use of shell companies: Corporate structures are established abroad for the sole purpose of evading customs duties.

If the authorities believe that this is being done systematically and with the intent to make a profit, the charge quickly becomes commercial smuggling.

Investigative authorities: Customs Investigation Service and European Public Prosecutor's Office (EUStA)

In the area of customs criminal law, the authorities have enormous resources and far-reaching powers.

• Main Customs Office (Customs Investigation): The customs investigation offices are the "criminal investigation division" of the customs service. They conduct investigations—often undercover—that last for months, monitor communication channels, and analyze the flow of goods and funds before carrying out searches and seizures.
• European Public Prosecutor’s Office (EPPO): This relatively new EU agency is specifically responsible for prosecuting crimes that harm the EU’s financial interests. This includes, in particular, large-scale, cross-border evasion of customs duties, import value-added tax, and anti-dumping duties. When the EPPO investigates a case, it is considered to have an international dimension and is pursued with the highest priority.

The Process of a Preliminary Investigation Under Customs Criminal Law

A typical case involving commercial smuggling proceeds in several phases:

1. Undercover Investigations: You don't notice a thing, but customs and the EUStA are already gathering evidence, analyzing data, and identifying your company's network.
2. Search and Seizure: Suddenly, investigators are at your business and home. Computers, files, cell phones, and merchandise are seized.
3. Asset Freeze and Forfeiture: To secure the evaded taxes, the court will freeze your accounts (asset freeze). This may be followed by the permanent forfeiture of your assets.
4. Indictment: The prosecutor's office files charges in court. At this point, at the latest, the case transitions from a preliminary investigation to a court proceeding.

What are the penalties for commercial smuggling and customs evasion?

The law imposes severe penalties for commercial smuggling. You can expect the following consequences:

• Imprisonment: The penalty ranges from six months to ten years. A suspended sentence is not guaranteed.
• Fines: Substantial fines based on your income and assets.
• Confiscation of Assets: The government not only collects the evaded customs duties but also all profits (proceeds) derived from the offenses. This can lead to the company's bankruptcy.
• Prohibition on Conducting Business: You may be prohibited from continuing to conduct your business.

How to Conduct Yourself During an Investigation: The Two Most Important Rules

If customs officials or the police show up at your door, or if you receive a subpoena, here's what to do:

1. REMAIN SILENT! Do not provide any information whatsoever regarding the matter. Every word can and will be used against you. The officers are trained to coax a statement out of you. Your only response should be: “I am exercising my right to remain silent and will contact a lawyer.”
2. CONTACT A SPECIALIST IMMEDIATELY! Call a criminal defense attorney who specializes in customs criminal law right away. Only an expert can take the right steps immediately, prevent you from making mistakes, and develop an effective defense strategy.

We specialize in customs and tax criminal law and defend clients nationwide against charges brought by the Federal Customs Office and the European Public Prosecutor’s Office. Contact us for a prompt and discreet initial consultation.

Our Expertise

• Specializing in customs and tax criminal proceedings: We regularly defend companies and executives against allegations brought primarily by the main customs offices in Cologne, Essen, and Aachen.
• Excellent Reputation: The ROSTALSKI law firm is regularly recognized as a top firm in the rankings of *WirtschaftsWoche*, *Handelsblatt*, and *FOCUS Business*, among others.
• Working with Your Legal Expense Insurance Provider: We have experience working with the relevant legal expense insurance providers and will handle the entire process of securing coverage on your behalf.