Why Greece confiscates cars

The Customs Directorate of the Greek Ministry of Economy and Finance robustly defends its treatment of people driving foreign-registered cars.

A statement faxed to the BBC on 20 February 2006, makes the following points:

The EU directive deals with the status of temporarily imported cars, not the size of fines, which member states have the sovereign power to decide.

These cases fall under the legal framework of the fight against economic crime. Those punished have included not only private citizens, but also traders engaged in the import and export of cars.

The law was changed in 2001. Since then the charge of smuggling has not applied to such cases and any confiscation of vehicles has been temporary - they are returned as soon as the fine is paid. The owner then has the option of obtaining Greek licence plates or taking the car out of the country.

Since the change in the law there have been cases where the Greek courts have returned a confiscated vehicle, or if the car has been sold, they have determined how much compensation the owner should receive.

If someone is cleared of smuggling then this acquittal only applies to the criminal side of the case, not to the administrative fines imposed for tax evasion. In most cases, the fact that people have set up residence in another country, or frequently visit another country, does not mean that they are permanent residents of that country (ie that the focus of their interests is there).

Greece is not violating EU law by confiscating cars, because article 75 of the EU customs code 2913/92 says confiscation and subsequent sale of merchandise may be necessary in order to ensure that the income to the member state is not lost.

On 22 December 2005 a new law was submitted to the Greek parliament, which provides for lighter fines. Temporary confiscation is allowed only in extreme cases. The new law also provides for a favourable settlement of pending cases.