In a case between the Nokia Corporation and the UK’s tax authority, Revenue and Customs, the question of whether customs authorities can seize suspected counterfeit goods that are travelling from one non-EU country to another non-EU country through an EU Member State, has arisen.

The Advocate General who gave his opinion on this matter stated that there must be sufficient grounds for suspecting that the goods in question are counterfeit and that they are to be put on the market in the EU. In essence, this will require some evidence which will suggest to the customs officials that the goods will actually appear for sale in the EU, despite the fact that they are destined for a non-EU country.

The issue of counterfeit goods is a significant problem for many companies with the number of fake goods entering the country reaching record levels in recent years. It is hoped that the decision of the Court of Justice will bring some welcome clarity to this area. In particular, a strong framework will need to be established by the Court so as to help ensure uniform interpretation and application of the rules throughout the EU Members States. Opinions of AGs are not binding on the Court of Justice, however they are followed in approximately 80% of cases. 

Contributed by Leo Moore.