The European Court of Human Rights (ECHR) delivered a judgment in the case of Raychenko and Others v. Ukraine, which consolidated 15 similar applications concerning disproportionate sanctions in customs cases. The cases involved situations where applicants failed to declare cash exceeding the permitted limit of 10,000 euros when crossing Ukrainian borders, resulting in both confiscation of the undeclared amounts and monetary fines.The Court found that Ukraine violated Article 1 of Protocol No. 1 to the Convention (protection of property) in all cases. The key issue was the disproportionate nature of the sanctions imposed – specifically the combination of complete confiscation of excess cash along with additional fines. The Court determined that this dual punishment imposed an excessive burden on the applicants.The main provisions of the decision include:
- The Court reaffirmed its previous position established in the Yaremiychuk and Others v. Ukraine case regarding the disproportionate nature of combined sanctions in customs cases
- While acknowledging that applicants must bear responsibility for failing to declare cash, the Court found that complete confiscation plus fines was excessive
- The Court ordered Ukraine to pay compensation to the applicants equal to the confiscated amounts plus costs and expenses in some cases
- The compensation amounts varied significantly between cases, from 2,060 euros to 90,323 euros, depending on the confiscated sums
The most significant aspects for practical application are:
- The establishment of clear precedent regarding proportionality of customs sanctions
- Recognition that while states can impose penalties for customs violations, such penalties must not be excessive
- Confirmation that combined use of confiscation and fines may constitute a violation of property rights
- The Court’s position that finding a violation does not absolve applicants of responsibility for their customs violations
