From a procedural point of view, customs duties do not fall within the application scope of the Greek Tax Procedure Code (Law 4174/2013). As a result, customs procedures and formalities are regulated by specific Ministerial Decrees and Administrative Orders. The vast number of such acts, which are often amended or substituted, adds unnecessary complication and intransparency to the regulatory framework.
Following Greece’s entry into the EU, cross border trading is no longer subject to strict controls. Transactions between residents of EU countries are not considered imports or exports and, therefore, they are not charged with customs duties. However, in the context of intra-European trade, some goods are still prohibited or subject to particular formalities (e.g. medicines for human use, waste, plants or live animals, etc.) Greece also maintains a de facto ban on genetically modified products. Moreover, the EU regulatory framework implies specific procedures regarding the import of several goods, especially agricultural and fishery products. Finally, special rules apply on the importation
of vehicles by tourists or by Greek residents. Exports to non-EU countries are free from quantitative restrictions. with the exception of petroleum oil and gas. In addition, special rules apply to the export and import of dangerous chemicals and pesticides.
Import duties are comparatively low, especially for manufactured goods. However, textile and clothing items as well as food-processing industry products are still subject to protective measures, notably high duties and tariff quotas. Moreover, numerous bilateral and multilateral agreements signed by the European Union are applicable to Greek imports.
The duty rates applied to imports into Greece typically range between 0% and 17%. Certain goods may be subject to additional duties for anti-dumping or countervailing purposes, depending on the country of origin. Customs duties are calculated ad valorem on the CIF value of the imports.
The standard VAT rate for importing items into Greece is 23%, whereas certain products, such as books, are charged with VAT at the reduced rate of 6%. VAT is calculated on the value of the goods plus international shipping costs and insurance, plus any import duty due.
Moreover, excise duties are payable on the importation of certain goods, such as oil, gas tobacco and alcohol. In addition, customs fees can be charged in order to cover the expense of performing any required examinations, verification or testing of the imported goods.
Greece operates the suspensive customs procedures set out by the Union Custom Code, namely the transit procedure, customs warehousing, inward processing, temporary importation, processing under customs control and entry into a free zone or warehouse
The Greek Customs Administration comprises numerous Customs Offices located throughout the country at ports, airports and land border crossings. Customs Offices are overseen by the General Directorate for Customs and Excise Taxes, which, in turn, falls under the authority of the General Secretariat for Public Revenue of the Ministry of Finance. Besides customs duties, Greek customs authorities are entrusted with the collection and administration of excise taxes as well as VAT on imports. Customs controls, including audits on excise taxes, are assigned to a special agency, entitled Agency for Customs Controls (ELYT).
Customs fraud and smuggling take a heavy toll on Greek economy. Especially in times of financial crisis, fraud involving excise goods, such as fuels, alcohol and cigarettes, has seen a dramatic increase, costing millions in state revenues. In response, Greece has intensified customs controls, provided customs officers with modern technological equipment and taken legislative measures to combat customs duties evasion. Moreover, Greece participates in several targeted customs operations initiated by the EU to tackle the risk of smuggling and fraud in excise goods.
Customs violations, such as the undervaluation of goods upon entry into a customs territory, inaccurate country of origin marking, misclassification of goods and failure to pay antidumping or countervailing duties, are subject to severe sanctions. In particular, Intentional offences or irregularities caused by negligence lead to administrative fines, whereas individuals involved to customs violations are subject to discretionary penalties (so-called “multiple duties”) ranging from three times to five times the amounts wrongly evaded. Customs Offices have full authority to assess duties and penalties and to seize merchandise for violations of customs legislation.
In addition, criminal proceedings may also be initiated in more grave cases of customs fraud. Offenders face sentences ranging from six months up to twenty years of imprisonment. Given that, under Greek law, corporations may not be held criminally liable, the criminal proceedings are conducted against the individuals with corporate liability.
Administrative and criminal sanctions may be imposed in parallel. This has caused major controversy and has been criticized as a violation of the legal principle “ne bis in idem”. Greece has been convicted by the European Court of Human Rights on these grounds in the case of “Kapetanios and Others v. Greece” (Nos. 3453/12, 42941/12 and 9028/13), however the Greek Supreme Court in administrative disputes (Council of State) has proved reluctant so far to follow such reasoning.
Disputes with the customs authorities are typically resolved through litigation. All cases involving custom duties as well as excise duties fall within the competence of administrative courts. No extrajudicial resolution mechanism is provided, such as an arbitration, settlement or administrative review procedure. As a result, the remedy of an administrative appeal, which is typically applicable to all tax disputes, is not available for customs disputes.
