CASE THE VALUE FOR CUSTOMS PURPOSES IS CALCULATED ON THAT PRICE .
7 IN THE GROUNDS OF THE SECOND ORDER THE NATIONAL COURT EXPRESSES DOUBTS AS TO WHETHER IT IS COMPATIBLE WITH THE FUNDAMENTAL CONCEPT OF A CUSTOMS UNION FOR ONE MEMBER STATE TO CHARGE CUSTOMS DUTY ON SMUGGLED DRUGS WHICH HAVE SUBSEQUENTLY BEEN DESTROYED WHEN THE OTHER MEMBER STATES MERELY PROSECUTE PERSONS SMUGGLING DRUGS UNDER THE CRIMINAL LAW .
8 THE COMMISSION HAS SUBMITTED THAT COMMUNITY PROVISIONS ON VALUE FOR CUSTOMS PURPOSES APPLY TO ANY GOODS REFERRED TO IN THE COMMON CUSTOMS TARIFF . SINCE HEROIN MUST BE CLASSIFIED UNDER TARIFF SUBHEADING 29.42 A II AS AN ' ' OTHER ' ' ALKALOID OF THE OPIUM GROUP , ITS VALUE FOR CUSTOMS PURPOSES SHOULD IN PRINCIPLE BE DETERMINED IN ACCORDANCE WITH COMMUNITY LAW IRRESPECTIVE OF WHETHER IT HAS BEEN IMPORTED LEGALLY OR ILLEGALLY . TO THE EXTENT TO WHICH THERE ARE STILL LACUNAE IN COMMUNITY LAW - AS AT THE DATE IN QUESTION IN THIS CASE IN REGARD TO THE TIME WHEN LIABILITY TO PAY CUSTOMS DUTY ARISES - THE DOMESTIC LAW OF THE IMPORTING MEMBER STATE APPLIES .
9 IT IS IMPORTANT TO STRESS AT THE OUTSET THAT THE FOURTH QUESTION REFERRED TO THE COURT BY THE NATIONAL COURT IS NOT CONCERNED SIMPLY WITH THE CASE OF THE ILLEGAL IMPORTATION OF ANY PRODUCT BUT CONCERNS THE SMUGGLING OF A HARMFUL SUBSTANCE INTENDED FOR AN UNLAWFUL USE , WHICH WAS DESTROYED AS SOON AS IT WAS DISCOVERED .
10 IT SHOULD NEXT BE REMEMBERED THAT A PRODUCT SUCH AS HEROIN IS NOT SEIZED AND DESTROYED ONLY BECAUSE THE IMPORTER HAS NOT COMPLIED WITH CUSTOMS FORMALITIES BUT PRIMARILY BECAUSE IT IS A NARCOTIC WHOSE HARMFULNESS IS RECOGNIZED AND WHOSE IMPORTATION AND MARKETING IS PROHIBITED IN ALL THE MEMBER STATES EXCEPT IN TRADE WHICH IS STRICTLY CONTROLLED AND LIMITED TO AUTHORIZED USE FOR PHARMACEUTICAL AND MEDICAL PURPOSES .
11 ALTHOUGH IN THESE CIRCUMSTANCES THE COMMON CUSTOMS TARIFF INCLUDES SUCH A PRODUCT AMONGST ITS CLASSIFICATIONS FOR THE PURPOSE OF FIXING THE APPLICABLE RATE OF CUSTOMS DUTY - 13.6% IN THE CASE OF SUBHEADING 29.42 A II - IT CAN ONLY APPLY TO IMPORTS OF THE PRODUCT WHICH ARE INTENDED FOR AN AUTHORIZED USE . INDEED , AD VALOREM CUSTOMS DUTY CANNOT BE DETERMINED FOR GOODS WHICH ARE OF SUCH A KIND THAT THEY MAY NOT BE PUT INTO CIRCULATION IN ANY MEMBER STATE BUT MUST ON THE CONTRARY BE SEIZED AND TAKEN OUT OF CIRCULATION BY THE COMPETENT AUTHORITIES AS SOON AS THEY ARE DISCOVERED .
12 IT SHOULD BE NOTED IN THIS CONNEXION THAT ALL THE PROVISIONS OF REGULATION ( EEC ) NO 803/68 OF THE COUNCIL ON THE VALUATION OF GOODS FOR CUSTOMS PURPOSES ARE BASED ON THE ASSUMPTION THAT THE IMPORTED GOODS ARE CAPABLE OF BEING PUT ON THE MARKET AND ABSORBED INTO COMMERCIAL CIRCULATION .
13 FURTHERMORE , SINCE ARTICLE 18 OF THE EEC TREATY INDICATES THAT THE SETTING-UP OF THE COMMON CUSTOMS TARIFF IS SEEN AS A