Smuggling and Turkey: The Court of Cassation (Judgment 25823/2025) Clarifies Absence of Offence in Customs Union

International trade, especially that crossing European Union borders, is a complex terrain, governed by a dense network of customs and tax regulations. Recently, the Criminal Court of Cassation, with judgment no. 25823 of March 21, 2025 (filed on July 14, 2025), issued an important clarification that directly impacts trade with Turkey, a strategic commercial partner of the EU. This ruling, presided over by Dr. G. Andreazza and drafted by Dr. A. Aceto, annuls without referral the decision of the Campobasso Freedom Court, offering a fundamental perspective on the configurability of smuggling and import VAT evasion offences concerning goods originating from that country.

The decision is of particular relevance to all businesses and professionals operating in the import-export sector, outlining the boundaries between the legitimate circulation of goods and illicit conduct.

The Case in Question: Goods from Turkey and Allegations of Contravention

The case concerned the introduction of goods originating from Turkey into the European Union territory. The defendant, A. R. Presutti, had been charged with the offences of evasion of border duties, pursuant to art. 292 of Presidential Decree of January 23, 1973, no. 43 (Consolidated Text of Customs Laws), and import VAT evasion, provided for by art. 70 of Presidential Decree of October 26, 1972, no. 633 (VAT Decree). These articles respectively penalize smuggling and the failure to pay value-added tax due upon the import of non-EU goods.

The central issue was to determine whether goods introduced from Turkey, despite having been regularly released for free circulation in the country of origin and accompanied by a circulation certificate, could still be subject to customs duties and import VAT upon arrival in Italy, and consequently, whether their non-declaration and failure to pay the related taxes constituted an offence.

The Ruling of the Court of Cassation and the Role of the EU-Turkey Customs Union

The Supreme Court, analyzing the regulatory framework and international agreements, provided a clear and unequivocal answer, culminating in the following ruling:

The introduction into the European Union territory of goods regularly released for free circulation in Turkey and accompanied by the relevant circulation certificate does not constitute the crime of evasion of border duties, as referred to in art. 292 Presidential Decree of January 23, 1973, no. 43, nor that of import VAT evasion, provided for by art. 70 Presidential Decree of October 26, 1972, no. 633, as Turkey is an integral part of the Customs Union based on the "Ankara" agreement, meaning such goods acquire the status of Community goods, in free circulation throughout the internal market, no longer subject to further duties or import value-added tax.

This ruling is of fundamental importance. The Court of Cassation emphasized that Turkey is an integral part of the Customs Union with the European Union, established based on the Ankara Agreement of 1963 and finalized by Decision no. 1/95 of the EC-Turkey Association Council. This means that goods that have been legally