Luxembourg, 15/01/2003 (Agence Europe) - The decisions of the European Commission to go to the Federal Court of the USA has not had any legal repercussions on cigarette producers Philip Morris, Reynolds and Japan tobacco. Consequently, according to the Court of First Instance, the CFI itself cannot challenge these decisions.
The European Commission, supported by eight Member States, is taking legal action against the producers, which have been accused of taking part in a contraband system of cigarette selling on European Union territory. This is also accompanied by other charges, such as failing to pay VAT and the repercussions that this would have for the EU. The Commission's first case was thrown out by the United States District Court Eastern District of New York and it is appealing against the second decision at the United States court of Appeals. The United Kingdom, Ireland, Austria, Luxembourg, Sweden and Denmark were unwilling to take part in this case.
The Commission has welcomed these conclusions, stressing that they reinforce its determination and that of OLAF to fight fraud whenever it damages the financial interests of the Union.