Brussels, 20/02/2002 (Agence Europe) - Despite the rejection of the "smuggling" chapter of its complaint, the European Commission is to pursue its action before the American courts against the American cigarette manufacturers Philip Morris and RJ Reynolds for public order offences, said a spokesperson on Wednesday, stipulating that the new complaint, more detailed, would be lodged to that effect with the Federal Tribunal of the District of Brooklyn, in New York.
"This affair has not been buried: all our options remain open", and "we have high hopes of winning", said the spokesperson. A first reading of the two-part ruling, which reached Brussels the day before, says that the allegation of smuggling is inadmissible by the tribunal due to the "legal doctrine known as rule of revenue" by which it is prohibited to apply a foreign law on behalf of a sovereign entity, or in other words collect un-levied taxes (VAT revenue and customs duties) on behalf of the Union. In the second part of his verdict, judge Nicholas Garaufis, who may statute alone in this affair, considers inadmissible "as it stands" the allegation of participation in a system of racket, including money laundering, but leaves the Union the possibility of coming back to the attack by re-wording, in more detail, this aspect of its complaint (see EUROPE of 8 August 2001). The judge considers, in substance, that it is not up to him to plead for the Union on this point that seems to him, at first sight, to be inadmissible, the spokesperson summarises, stipulating: "We have still not pleaded, we have not yet presented the proof at our disposal and are still at a preliminary stage, where the defence has, for a second time, secured the rejection of the complaint as currently worded."
Consequently, says the spokesperson, "the Commission is of the opinion that it would be highly appropriate to pursue its action and plead again on this point", and "obviously intends, as do Member states, pursuing the many actions against smuggling through other means". Michaele Schreyer, the Commissioner responsible for combating fraud, was to examine this new verdict with legal experts from the Commission in the afternoon and inform the college on Thursday already. "We will examine the de facto, de jure and other arguments, then deploy them in such a way as to win the case", the spokesperson stipulated, adding that there would be a meeting next week, at technical level, with the 10 Member States that associated themselves with the Commission's action.