Keywords
Summary

Keywords

++++

Common Customs Tariff - Customs duties - Application to counterfeit currency - Not permissible - Criminal penalties for offences - Powers of Member States

Tax provisions - Harmonization of laws - Turnover tax - Common system of value added tax - Import tax - Application to counterfeit currency - Not permissible - Criminal penalties for offences - Powers of Member States

( Council Directive 77/388, Art . 2 )

Summary

Since there is an absolute prohibition, in all the Member States, on the importation or bringing into circulation of counterfeit currency, Community law must be interpreted as meaning that no customs debt can arise upon the importation of counterfeit currency into the customs territory of the Community .

Imports of counterfeit currency into the Community are alien to the provisions of the Sixth Directive on the harmonization of the laws of the Member States relating to turnover taxes . Article 2 of that directive must therefore be interpreted as meaning that import value added tax may not be collected on the importation of counterfeit currency into the Community .

Neither of those rulings in any way affects the powers of Member States to prosecute breaches of their laws against counterfeit currency and to impose appropriate penalties, with all the consequences which such penalties imply, whether financial or otherwise .