Customs Law Lawyer in Paris

CUSTOMS CONTROL OF UNDECLARED CAPITAL TRANSFERS: CUSTOMS LITIGATION IN CROSS-BORDER FINANCIAL RELATIONS

A DECLARATION REQUIREMENT WHEN ENTERING OR LEAVING FRENCH TERRITORY

Any individual transferring funds, securities, or valuables—including those referred to in Article L. 561-13 of the French Monetary and Financial Code—as well as payment methods defined in Law No. 2013-100 of January 28, 2013, or gold, to or from another EU Member State without going through a credit institution, electronic money institution, payment institution, or any other authorized entity (Article L. 518-1), must file a declaration under conditions set by decree.

Any cash, securities, or valuables amounting to €10,000 or more (or the equivalent in foreign currency), physically transported by an individual, must be declared in advance to customs.

This requirement is part of the fight against money laundering, especially from illicit activities such as drug trafficking.

A declaration must be filed for each transfer, except for amounts below the €10,000 threshold. (Beware: even pocket cash counts!)

A declaration is also required when the individual is carrying the funds on behalf of a third party.

APPLICABLE TO TRANSFERS TO/FROM BOTH THIRD COUNTRIES AND EU MEMBER STATES

A declaration must be submitted when entering or exiting France, regardless of whether the destination or origin is an EU Member State or a third country.

Declarations may be submitted using Cerfa Form No. 13426 or online via the DALIA platform: https://www.douane.gouv.fr/dalia

PENALTIES FOR FAILURE TO DECLARE

Failure to declare is an administrative customs offence, regardless of intent.
Declarations over €10,000 must be accurate and complete. Declarations over €50,000 must be accompanied by supporting documents.

Sanctions are severe:

• A customs fine equal to 50% of the undeclared amount;

• Seizure and confiscation of the undeclared funds, even if the person is ultimately not convicted of a customs offence;

• Potential money laundering charges if the undeclared amount over €10,000 is found to be the proceeds of a crime or offence.

CONTROL OF CROSS-BORDER WASTE SHIPMENTS

Cross-border movements of waste are regulated by specific rules enforced by the National Office for Cross-Border Waste Transfers (PNTTD).

The Basel Convention of March 22, 1989, regulates the international transfer of hazardous and other waste, and was ratified by the European Union via Regulation (EC) No. 1013/2006, along with its subsequent amendments.

Regulations vary depending on:

• The nature and hazard classification of the waste;

• The purpose of the transfer (recovery or disposal);

• The origin, destination, and route taken.

Customs authorities monitor exports, imports, and the transit of waste subject to prior notification and consent procedures. They also enforce bans on certain exports outside the EU and supervise rules regarding green list waste shipped for recovery to non-OECD countries.

All accompanying documents must be presented to customs upon entry or exit from the EU and upon request within the national territory.

LIABILITY OF CUSTOMS REPRESENTATIVES UNDER THE NEW EU DEFINITION OF EXPORTER

As of October 1, 2020, the new definition of « exporter » under Commission Delegated Regulation 2018/1063 (amending Article 1(19) of Regulation (EU) 2015/2446) is in effect.

Under this definition, an exporter must be established in the EU customs territory. The former requirement of having a sales contract with a third-country recipient is no longer applicable.

This requirement does not apply to re-exports of non-Union goods (Article 270(1) of the Union Customs Code).

Per Articles 5(31) and 5(32) of the UCC, being « established » in the EU means having:

• A registered office,

• A central administration, or

• A permanent establishment (i.e. a fixed place of business with sufficient human and technical resources to carry out customs operations fully or partially).

This establishment requirement is now a mandatory condition for being recognized as an exporter under EU customs law.

As a result, non-EU companies that do not meet this criterion can no longer be declared as exporters. Instead, they must appoint an EU-based entity to act on their behalf.

This shift transfers full customs liability to the designated exporter—typically a customs representative. If audited, these representatives assume all related legal risks.

Therefore, it is crucial to secure contractual arrangements and ensure proper indemnities are in place to protect against any customs sanctions imposed on the designated exporter.