- Member States undertake to introduce legislation, making such provision as may be necessary for penalties against persons who, in their State, furnish or cause to be furnished a document which is untrue in a material particular in support of a claim in another Member State that goods should be accepted as eligible for Community tariff treatment. The penalties applicable shall be similar to those applicable in case of untrue declarations in regard to payment of duty on imports.
- A Member State may deal with the offence out of court, if it can be more appropriately dealt with by a compromise penalty or similar administrative procedure.
- A Member State shall be under no obligation to institute or continue court proceedings, or action under paragraph 2 of this Rule:
(a) if it has not been requested to do so by the importing Member State to which the untrue claim was made; or
(b) if, on the evidence available, the proceedings would not be justified.