Case T-260/01: Action brought on 15 October 2001 by R.J. Reynolds Tobacco Holdings, Inc, R.J. Reynolds Tobacco International, Inc, R.J. Reynolds Tobacco Company and RJR Acquisition Corp. against the Commission of the European Communities
Date: 2002-01-05
Institutions: Court of First Instance
Subjects: European Commission, United States, action for annulment (EU), customs duties, fraud against the EU, tobacco industry

5.1.2002

EN

Official Journal of the European Communities

C 3/39

Decision of the Board of
Appeal:

Grounds
the action:

for bringing

Dismissal of the appeal

No likelihood of confusion within
the meaning of Article 8(1)(b) of
Council Regulation (EC) 40/94
of 20 December 1993 on the
Community trade mark (1)

respect to other economic and non-economic injuries arising
therefrom. The payment of these customs duties and VAT has
allegedly been avoided by smuggling cigarettes into the
European Union. This is the second time that the European
Community has commenced such proceedings (1).
In the
current proceedings, the Commission is also acting as agent
for Member States for the recovery of these taxes allegedly
owed to them.

(1) OJ 1994 L 11, p. 1.

The applicants submit that the Community has no competence
to commence these proceedings. According to the applicants,
neither the EC Treaty nor any other act confers on the
European Commission the competence to act as a legal person,
especially not outside the jurisdiction of the Member States, in
order independently to protect its financial interests in this
way outside the Community or to combat fraud in this way;
nor is the action in question a joint action by the Commission
and the Member States, since not all Member States are
involved in the proceedings.

The current proceedings also constitute, according to the
applicants, an attempt to recover the allegedly unpaid taxes.
The applicants submit that the European Commission has no
competence to collect taxes. This competence lies solely with
the Member States within their respective territories. According
to the applicants, the Commission should therefore commence
actions against the Member States for failing properly to apply
the Communities’ rules on customs duties and VAT.

The applicants also submit
the Community is not
competent to act as agent for the Member States in the
proceedings.

that

According to the applicants, the Commission has also failed to
follow the proper procedure leading up to the decision to
commence these proceedings. The Commission should have
followed the procedure set out in Article 280 (4) and 251 EC
Treaty to adopt measures combatting fraud. Furthermore, the
Commission has not respected the applicants right to be heard
and their right to be provided with reasons. Moreover, the
applicants contend that the Commission violated the principle
of legal certainty, the rights of defence and due process,
the principle of proportionality and the principle of sound
administration. Finally, the Applicants contend that the Com-
mission misused its powers.

(1) The decision to commence the first proceedings is being contested
by the applicants in Case T-379/00 (JO C 79 of 10.3.2001, p. 24).

Action brought on 15 October 2001 by R.J. Reynolds
Tobacco Holdings, Inc, R.J. Reynolds Tobacco Inter-
national, Inc, R.J. Reynolds Tobacco Company and RJR
Acquisition Corp. against the Commission of the Euro-
pean Communities

(Case T-260/01)

(2002/C 3/67)

(Language of the case: English)

An action against the Commission of the European Communi-
ties was brought before the Court of First Instance of the
European Communities on 15 October 2001 by R.J. Reynolds
Tobacco Holdings, Inc, R.J. Reynolds Tobacco International,
Inc, R.J. Reynolds Tobacco Company and RJR Acquisition
Corp., represented by Mr Paul Lomas and Mr Onno Brouwer
of Freshfields Bruckhaus Deringer, London (United Kingdom).

The applicants claim that the Court should:

— annul the Commission’s decision, which became known
to the applicant on 6 August 2001, to commence the
second US proceedings;

— order that the Commission pay the costs of the present
the applicants and

including those of

proceedings,
intervening parties.

Pleas in law and main arguments

The applicants are the defendants in legal proceedings brought
by the European Community before a United States Court, in
which the Community is seeking damages in respect of
in
allegedly unpaid customs duties and VAT, and relief