International companies and foreign individuals involved in importing or exporting goods to and from Germany must comply with complex national and international customs regulations. Even minor violations can lead to fines, criminal charges, or other severe legal consequences. Allegations may include incorrect declaration of goods, customs duty evasion, smuggling, or breaches of trade restrictions.
A strong defence in cases of customs-related offences requires deep expertise in German criminal law and a thorough understanding of customs regulations and the practices of German customs authorities. At Schlun & Elseven, our experienced customs defence lawyers provide strategic legal assistance for corporate clients and individuals facing investigations under Customs criminal law in Germany.
Customs Criminal Law in Germany: General Overview
Customs criminal law in Germany is a specialised area of criminal law primarily related to tax offences. It distinguishes between customs offences—which can lead to severe penalties, including fines and imprisonment—and the less severe customs administrative offences, such as tax endangerment under § 379 of the German Fiscal Code (AO) or reckless tax evasion under § 378 AO.
Even minor customs violations can result in fines. Under §§ 30 and 130 of the German Act Against Regulatory Offences (OWiG), companies may face corporate fines of up to ten million euros for intentional customs violations, depending on the applicable legal framework.
Customs Offences and Their Legal Basis
German law treats customs offences as tax offences under § 369 (1) AO, meaning tax evasion laws, particularly § 370 AO, also apply to customs evasion. Other significant customs-related offences under the Fiscal Code include:
- Smuggling (§ 373 AO)
- Breach of trade restrictions (§ 372 AO)
- Tax evasion related to customs duties (§ 370 AO)
For businesses engaged in international trade, customs duty evasion can quickly be classified as a commercial offence, leading to harsher penalties. Despite the cross-border nature of customs violations, there are no uniform EU-wide criminal laws governing customs offences, so German criminal law, particularly the Fiscal Code (AO), applies in most cases.
However, customs duties and trade regulations fall under EU law, particularly the Union Customs Code (UCC, Regulation (EU) 952/2013). This can create significant legal complexities when customs violations overlap with other areas of criminal law, such as narcotics, pharmaceutical offences, or intellectual property violations.
Customs Risks when Entering Germany from Third Countries
For private individuals, key risks include:
- Smuggling goods into Germany
- Failing to declare cash exceeding €10,000 at customs when entering Germany from a third country (non-EU member state)
- Non-compliance with excise duties on regulated goods (e.g., alcohol, tobacco)
For international businesses, the main concerns are:
Investigating Authorities under German Customs Criminal Law
In most customs criminal law cases, the public prosecutor’s office plays a minimal role, as specialised investigative authorities handle customs-related offences in Germany. These authorities include:
- The Zollkriminalamt (Customs Criminal Investigation Office), headquartered in Cologne, which oversees major customs-related investigations.
- There are eight Customs Investigation Offices in Berlin, Dresden, Essen, Frankfurt a.M., Hamburg, Hannover, Munich, and Stuttgart, which focus on enforcing Customs Criminal Law in Germany at a regional level.
- 41 Main Customs Offices that conduct on-the-ground enforcement and investigations.
These customs enforcement agencies have the same legal powers as the public prosecutor’s office, enabling them to initiate criminal investigations, seize goods, impose fines, and work with international customs and law enforcement agencies to combat cross-border customs offences.
For foreign businesses operating in Germany and international individuals involved in trade, customs investigations can have serious consequences, including financial penalties, supply chain disruptions, and potential criminal liability.
If you are entering or leaving Germany from a non-EU country with €10,000 or more in cash or cash equivalents, you must declare this amount in writing to German customs authorities. Before crossing the border, this declaration must be made voluntarily at the relevant customs office.
Failure to declare and/or providing false information may result in substantial fines or further customs investigations. The obligation to declare applies to all persons carrying the cash, regardless of ownership or purpose.
Cash and cash equivalents include:
- Physical currency (euros or foreign currencies)
- Securities (e.g., savings bonds, cheques, stocks)
For foreign currencies, the total value must be converted into euros at the official exchange rate on the day of entry or exit.
International travellers, business professionals, and companies moving large sums of money across borders should be aware of these strict customs regulations to avoid penalties under customs criminal law in Germany.
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
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