The decision of the European Court of Human Rights in the case of “Shpytalnyk and Artyukh v. Ukraine” concerns complaints about the disproportionality of penalties in cases of customs violations, in particular the confiscation of undeclared cash and the imposition of fines. The Court found that such penalties placed an excessive burden on the applicants, considering the confiscation of the entire amount of undeclared cash in addition to the fine.
The structure of the decision includes the joinder of applications, consideration of complaints under Article 1 of Protocol No. 1 to the Convention for the Protection of Human Rights and Fundamental Freedoms, and the application of Article 41 of the Convention regarding just satisfaction. The Court refers to previous practice in similar cases, in particular the case of “Yaremiychuk and Others v. Ukraine”, where violations regarding similar issues had already been established.
The most important provision of this decision is the recognition that the confiscation of the entire amount of undeclared cash together with a fine is a disproportionate penalty, which constitutes a violation of the right to peaceful enjoyment of possessions, guaranteed by Article 1 of Protocol No. 1 to the Convention. The Court also held that the finding of a violation constituted sufficient just satisfaction for non-pecuniary damage and awarded compensation for pecuniary damage and reimbursement of legal costs.
