German Customs investigates a wide range of offenses: customs evasion, smuggling, and breaches of the German Fiscal Code (AO), violations of foreign trade and export control law, tobacco and alcohol smuggling, narcotics and pharmaceutical smuggling, product piracy, illegal species smuggling, and the unauthorized transport of waste. Through the Financial Control of Illegal Employment (FKS), customs authorities also prosecute illegal employment, illegal work, and minimum wage violations.
Successful criminal defense requires in-depth expertise in German criminal law, as well as a thorough knowledge of German customs criminal law and customs authority practices. When it comes to searches, seizures, or ongoing investigations, swift action is essential. The attorneys at Schlun & Elseven Rechtsanwälte are at your side throughout all stages of the proceedings – discreet, experienced, and nationwide.
German Customs Criminal Law: An Overview of the Most Important Offenses
Customs Evasion in Germany (Section 370 AO)
Customs evasion is the most common customs offense in the commercial sector. The German Fiscal Code defines customs offenses as tax offenses. The provision on tax evasion is therefore applicable to cases of customs evasion. The elements of Section 370 AO are fulfilled if incorrect or incomplete information is provided to the customs authorities, thereby reducing import duties, customs duties, or import sales tax. Typical cases include false declaration of the value of goods, false description of goods, or complete concealment of goods subject to declaration. The penalty is up to five years’ imprisonment, or up to ten years in particularly serious cases.
In addition, there are also so-called tax irregularities such as tax endangerment or reckless tax evasion. Although these do not constitute criminal offenses, they can still result in a substantial fine.
Smuggling under German Law (Section 373 AO)
Smuggling is the qualified form of customs evasion or breach of prohibition: The offense is committed when import duties are evaded commercially or as a member of a gang, or when a breach of prohibition is committed commercially by violating monopoly regulations. Typical examples include organized cigarette smuggling, the importation of untaxed alcohol, and the gang-related smuggling of goods without customs declaration. The customs investigation offices are responsible for investigations and have extensive powers, including searches and seizures. The penalty ranges from six months to ten years’ imprisonment.
Breach of prohibition under German Law (Section 372 AO)
Breach of prohibition covers the illegal import or export of goods in violation of a statutory import or export ban, regardless of whether duties are evaded in the process. Section 372 AO therefore always applies when the transport of the goods themselves is prohibited. Typical cases include the import of narcotics, the export of embargoed goods, or the illegal trade in CITES-protected animal and plant species. Customs controls cross-border goods traffic and detects corresponding violations during entry and exit checks and container inspections. Breaching the ban is punishable by up to five years’ imprisonment.
Receiving, Holding or Selling Goods Obtained by Tax Evasion in Germany (Section 374 AO)
Section 374 AO covers not only the smuggler themselves, but also anyone who purchases, obtains, or sells goods on which import duties have been evaded. A typical example is the purchase of untaxed tobacco or alcohol in the knowledge of its illegal origin. Penalties can be up to five years’ imprisonment, or up to ten years’ imprisonment in the case of commercial offenses.
Tobacco and Alcohol Smuggling in Germany
The evasion of excise duties on tobacco and alcohol is an area of crime that is often underestimated in practice. It can also occur without any cross-border involvement – for example, in the illegal manufacture of tobacco products within Germany. In cases involving border crossings, this offense regularly overlaps with smuggling under Section 373 AO. Customs authorities not only investigate tobacco and alcohol at the border, but also carry out so-called tax inspection measures nationwide – in kiosks, hookah bars, wholesalers, and warehouses.
Embargo Violations and Export Control Germany
The German Foreign Trade Act (AWG) and EU regulations govern which goods may be exported to which countries. So-called dual-use goods—goods with potential civilian and military uses—are subject to special licensing requirements. Violations of EU sanctions (e.g., against Russia, Iran, or North Korea) or the War Weapons Control Act are punishable under Section 18 AWG and Section 22a of the German War Weapons Control Act (KrWaffKontrG). The German Customs Criminal Investigation Office (ZKA) and the customs investigation offices investigate these cases, as customs is responsible for the physical control of cross-border goods traffic. The penalty is up to five years’ imprisonment, or up to 10 years in particularly serious cases.
Narcotics Smuggling under German Law
The smuggling of narcotics across the border can constitute an offense under both the Narcotics Act (BtMG) and the Fiscal Code (AO). Customs authorities uncover such cases during border controls, at parcel centers, and during container inspections. For quantities that are not insignificant, the penalty under the BtMG is at least one year and up to 15 years’ imprisonment.
The unauthorized import of unapproved drugs or counterfeit medicines from third countries is also punishable under Section 96 Medicinal Products Act (AMG) and can be detected by customs during border checks.
Illegal Employment and Undeclared Work in Germany
The Financial Control Unit for Undeclared Work (FKS) is a specialized unit of the customs administration which, under the Act to Combat Undeclared Work (SchwarzArbG), is responsible for prosecuting undeclared work, illegal employment, and minimum wage violations. Anyone who employs workers without registering them for social security, withholds the minimum wage, or employs foreigners without a work permit is liable to prosecution. A frequent accompanying offense is the withholding of social security contributions under Section 266a of the German Criminal Code (StGB). The FKS carries out unannounced audits and has extensive investigative powers.
Trademark and Product Piracy
The importation of counterfeit branded goods is a growing problem in international trade. Customs authorities act on the basis of the EU Product Piracy Regulation (Regulation (EU) No. 608/2013) and can stop and seize suspicious shipments. If a container with counterfeit goods is discovered during an inspection, the entire shipment may be confiscated and destroyed, and criminal prosecution for commercial infringement of property rights may be initiated.
Illegal species smuggling – CITES violations
The import or export of protected animal and plant species without a CITES permit constitutes both a violation of Section 372 AO and Section 71 of the Federal Nature Conservation Act (BNatSchG). This applies to ivory, reptile leather, coral, and live exotic animals, among other things. Customs checks for the required CITES documents upon import and initiates investigations in the event of violations.
Illegal Waste Shipment
The cross-border shipment of hazardous waste – in particular electronic waste or end-of-life vehicles – to countries outside the EU is punishable under Section 326 (2) StGB in conjunction with the German Waste Management Act (KrWG) and the EU Waste Shipment Regulation. Customs regularly uncovers such cases during container inspections at seaports and investigates them together with the environmental authorities.
Investigating Authorities under German Customs Criminal Law
The public prosecutor’s office rarely takes action in customs criminal matters, or does so only in close cooperation with customs. The following are specialized customs investigation authorities:
- Customs Criminal Investigation Office (ZKA) in Cologne: Central authority for customs investigations
- Eight customs investigation offices (Berlin, Dresden, Essen, Frankfurt am Main, Hamburg, Hanover, Munich, Stuttgart): conduct criminal investigations with public prosecutor’s powers
- 41 main customs offices: responsible for fine proceedings and initial investigations
- Financial Control of Illegal Employment (FKS): responsible nationwide for illegal employment and undeclared work
Anyone entering Germany from a non-EU country or leaving Germany for a non-EU country with cash or cash equivalents totaling €10,000 or more must declare this amount in writing. The declaration must be made unsolicited at the competent customs office in Germany. Failure to declare or incorrect declaration may result in a fine.
All persons carrying cash are required to declare it, regardless of who it belongs to and why they have it with them. Cash includes cash and securities such as savings bonds, checks, or stocks. If it is a foreign currency, it must be converted into euros at the current exchange rate on the day of entry or exit.
Search of Private and Business Premises | Seizure of Goods in Customs Criminal Law in Germany
Searches of private residences and business premises by German customs investigation authorities can play a significant role in customs criminal law cases. If there is reasonable suspicion of a customs offence, a judge may issue a search warrant under § 102 German Code of Criminal Procedure (StPO), authorising officials to enter and search a premises.
For foreign companies operating in Germany, customs-related legal violations—such as undervalued imports, undeclared goods, or missing tax stamps—can lead to raids on offices, warehouses, and distribution centres.
Additionally, under § 404 AO, customs authorities have the right to:
- Inspect and seize business documents relevant to customs regulations.
- Confiscate goods that were imported illegally or without the required tax clearance.
This can result in significant operational disruptions and potential legal liabilities for international businesses. If your company faces an investigation under German customs criminal law, timely legal intervention can help prevent business losses and mitigate penalties.
Voluntary Self-Disclosure for Exemption from Punishment
Since customs evasion is treated as a form of tax evasion under German law, individuals and businesses may be able to avoid criminal penalties by making a voluntary self-disclosure under § 371 AO to the relevant tax office. It should be noted that voluntary disclosure is only possible before the tax office/customs have started their own investigations.
However, this exemption applies only to cases of tax or customs evasion and does not cover:
- Contraband offences (§ 372 AO)
- Smuggling (§ 373 AO)
- Associated criminal offences (e.g., forgery or violations of narcotics regulations)
Three conditions must be met to qualify for exemption from punishment:
- Full correction of the declaration (disclosing all omitted or incorrect customs information).
- Timely payment of outstanding customs duties and taxes.
- No disqualifying factors (e.g., the investigation is already in progress).
If any of these conditions are not met, partial leniency may still be granted. However, self-disclosure does not eliminate tax liability, and the evaded customs duties remain payable, along with interest of 0.5% per month under §§ 235, 238 AO. Additionally, customs authorities may impose liens on assets under § 76 AO to secure claims.
Legal Protection Against Customs Assessments in Germany
When importing or exporting goods to and from Germany, customs authorities determine the duties and taxes owed through a customs assessment notice. This can include:
- Import and export duties
- Excise duties (e.g., on alcohol, tobacco, or energy products), which are separate from standard import taxes
Under German tax law, these assessments are legally considered tax assessments as defined in § 155 (1) AO in conjunction with § 3 (3) AO.
Appealing a Customs Assessment in Germany
Unlike customs duties, which are regulated at the EU level, there is no standardised EU-wide appeal process. Instead, Article 44 of the Union Customs Code (UCC) defers to national laws for handling appeals.
In Germany, businesses and individuals can challenge customs assessments under §§ 347 et seq. AO. The responsible authority for handling appeals is:
- The main customs office (Hauptzollamt), which functions as a tax authority under German law.
Legal Support from Schlun & Elseven in Customs Criminal Law Matters
For international companies and foreign individuals facing a customs dispute in Germany, facing the appeal process requires in-depth knowledge of German and EU customs regulations. Errors in customs declarations or incorrect tax calculations can result in significant financial penalties or operational delays.
Seeking expert legal assistance ensures that your business can:
- Challenge excessive customs duties
- Rectify miscalculations in assessments
- Protect against unfair enforcement measures
If you have received a customs assessment notice in Germany and wish to appeal, legal support can help safeguard your business interests and prevent costly penalties.
Practice Group: German Customs Lawyers
Practice Group:
German Customs Lawyers
Contact Schlun & Elseven Rechtsanwälte
Please use our online form to outline your request to us. After receiving your request, we will make a brief initial assessment based on the facts described and provide you with a cost offer. You can then decide whether you would like to engage our services.
