Lietuviškai
                   THE CONSTITUTIONAL COURT OF                   
                    THE REPUBLIC OF LITHUANIA                    

                           R U L I N G                           

        On the compliance of Part 1 of Article 26 of the         
          Republic of Lithuania Code of Administrative           
       Transgressions of Law with the Constitution of the        
                      Republic of Lithuania                      

                      8 April 1997, Vilnius                      

     The  Constitutional  Court  of  the  Republic  of Lithuania,
composed  of  the  Justices  of the Constitutional Court Egidijus
Jarašiūnas,   Zigmas   Levickis,   Augustinas  Normantas,  Vladas
Pavilonis,  Jonas  Prapiestis,  Pranas Vytautas Rasimavičius, and
Juozas Žilys,
     the secretary of the hearing - Sigutė Brusovienė,
     the  representative  of the Seimas - the associate professor
Dr.  Pranas  Petkevičius,  a  consultant at the Legal Division of
the Seimas,
     pursuant  to  Part  1  of Article 102 of the Constitution of
the  Republic  of Lithuania and Part 1 of Article 1 of the Law on
the  Constitutional  Court  of  the Republic of Lithuania, in its
public  hearing  on  12 March 1997 conducted the investigation of
Case  No.  12/96-5/97 subsequent to the petition submitted to the
Court  by  the petitioners - the Lazdijai Regional District Court
and   the   Alytus   Regional  District  Court  -  requesting  to
investigate   if  Part  1  of  Article  26  of  the  Republic  of
Lithuania  Code  of  Administrative  Transgressions of Law was in
compliance with the Constitution of the Republic of Lithuania.

     The Constitutional Court
                        has established:                         

                                I                                
     On  28  June  1996,  the  petitioner - the Lazdijai Regional
District  Court  - was investigating a civil case pursuant to the
complaint  of  R. Beczkowski who sought to repeal the decision of
the  head  of the Lazdijai Custom-House whereby an administrative
penalty  had  been  imposed. By its interlocutory ruling the said
court  suspended  the  investigation  of the case and appealed to
the  Constitutional  Court  with  the  request  to investigate if
Article   1   of   the   23  April  1996  Law  "On  Amending  and
Supplementing  Articles  26, 35, 208, 209, 210, 211, 237, 292 and
320   of   the  Republic  of  Lithuania  Code  of  Administrative
Transgressions  of  Law" (Official Gazette "Valstybės Žinios" No.
41-990,  1996)  whereby the second clause of Part 1 of Article 26
of   the   Code   of   Administrative   Transgressions   of   Law
(hereinafter  in  the  ruling  referred  to  as  the CATL) was in
compliance with Article 23 of the Constitution.
     On  14  January  1997,  the petitioner - the Alytus Regional
District  Court  - was investigating a civil case pursuant to the
complaint  of  J.  Kazakevičius who sought to repeal the decision
of  the  head  of  the Alytus Territorial Custom-House whereby an
administrative  penalty  had  been  imposed. By its interlocutory
ruling  the  said  court  suspended the investigation of the case
an  appealed  to  the  Constitutional  Court  with the request to
investigate  if  the  provision contained by the second clause of
Part  1  of  Article  26  of  the CATL was in compliance with the
Constitution.
     Taking  account  of the fact that the both petitions concern
the  question  of  compliance  of the same legal act and the same
norm  with  the  Constitution,  the Constitutional Court by its 3
March 1997 decision joined them into one case.
  
                               II                                
     The  petitioners  ground  their  requests with the following
arguments:
     1.  The  second  clause  of Part 1 of disputed Article 26 of
the  CATL  stipulates:  "Only  the  item which is property of the
transgressor   shall   be   subject   to  confiscation  with  the
exception  of  the  item which was either an immediate instrument
or  an  immediate  object  of the administrative transgression of
law  pertaining  to  legal cases of administrative transgressions
of  law  as  provided  for  by  Article 210 of this Code." In the
opinion  of  the petitioners, this violates the norm of Part 1 of
Article   23   of   the  Constitution  that  "property  shall  be
inviolable",  as  well as that of Part 2 of the same article that
"the  rights  of ownership shall be protected by law", as well as
that  of  Part  3  of the same article that "property may only be
seized  for  the  needs  of  society  according  to the procedure
established  by  law  and  must  be  adequately compensated for".
Such  an  amendment  of  the law violates the ownership rights of
other    persons    who   have   not   committed   administrative
transgressions  of  law.  The  disputed provision contradicts the
objectives  of  administrative  penalty  defined in Article 20 of
the CATL, too.
     2.  The  petitioners  are  of  the  opinion  that  the  CATL
consolidates   the   requirement  that  only  such  a  person  be
penalised  who  is  guilty  of  having  (on  purpose  or  through
negligence)  performed  an act whereby interests protected by law
were  violated.  Meanwhile,  Part  1  of  Article  26 of the CATL
provides   with   grounds  to  penalise  another  person  who  is
innocent but not the one who performed a transgression of law.
  
                               III                               
     In  the  course  of  preparation  of  the  case for judicial
investigation  an  explanation  of 31 October 1996 of the Customs
Department  at  the  Ministry  of  Finance  of  the  Republic  of
Lithuania   was   received.   It   was   indicated  therein  that
confiscation  of  an item is one of the types of penalties listed
in  Article  21 of the CATL. When a transgressor makes use of his
or  someone  else's  property  as means to violate proprietary or
personal  rights  of  other persons, or interests of the state or
those  of  society,  then  such property may be confiscated under
procedure  and  conditions provided for by laws. Not any property
is  subject  to  confiscation  but  only which is linked with the
performed   transgression.   The   instrument  of  administrative
transgression  of  law  is  confiscated from the transgressor who
with  the  help  of  this item (no matter if it belongs to him or
whether  it  was  transferred to him on trust) transgressed legal
norms.  Providing  a  person,  by  realising  his proprietary and
other  rights,  acts  contrary  to  rights  and freedoms of other
persons,  he  may  be called to account and punished (Articles 30
and  31  of  the  Constitution). The punishment of such a person,
or  application  of  one  or  other  restrictions  to  him or his
property,  are  determined  by  laws of different branches of law
pursuant  to  general  requirements  of the Constitution, as well
as  principles  of forming sanctions pertaining to this branch of
law   while  taking  account  of  the  objectives  of  penalties.
Provided  the  owner  transfers an item to another person for use
by  warrant,  or  by  agreement or arrangement, and if the latter
uses  it  for  criminal deeds and loses it, then, under the norms
of  the  Civil  Code of the Republic of Lithuania (hereinafter in
the  ruling  referred  to  as  the CC), the owner of the item may
recover  damages  inflicted  on him from the debtor (transgressor
of  administrative  law).  Inviolability  of  property means that
the  owner  as  the possessor of subjective rights to property is
entitled  to  demand  that  other  persons should not violate his
rights,  as  well as that the state has the duty to safeguard and
protect  property  from  illegal  encroachment  upon it. Handling
the  property  which  has  been  trusted  to  him  in  unfair and
unlawful   manner,   and   knowing  that  this  property  may  be
confiscated   under  procedure  determined  by  law,  the  person
violates the rights to property of the owner.
     Part  2  of  Article  23 of the Constitution stipulates that
the  rights  of ownership shall be protected by law. It is stated
in  the  explanation  of  the  Customs  Department  that for this
purpose  an  entire  system  of norms of civil and other branches
of  law  has  been created. However, from the standpoint of legal
theory,  protection  of  ownership  rights  by  legal  means also
predetermines  respective  limits  of  such  protection.  On  the
other  hand,  subjective  rights, i.e. the rights of the owner to
manage,  use  and  dispose  of his property, may be restricted by
laws  due  to  the  nature  of property possessed (arms, narcotic
substance  etc.),  due  to  urgent interests of society (problems
of  ecology  etc.)  or due to performed acts contrary to the law.
Laws  provide  that claims may be directed at the property of the
owner  under  obligations  which occur from agreement, delictual,
family,  or  other  relations.  The  fact  that  property  may be
seized  is  also  confirmed  by  Part  3  of  Article  23  of the
Constitution  which  stipulates: "Property may only be seized for
the  needs  of  society according to the procedure established by
law and must be adequately compensated for."
     The   provision  that  under  certain  conditions  ownership
rights  may  be  restricted  is provided for in Item 2 of Article
17   of   the   Universal   Declaration  of  Human  Rights  which
stipulates:   "No  one  shall  be  arbitrarily  deprived  of  his
property."  It  means  that  property may be seized but this must
be  performed  under procedure established by laws, and this must
be done by an authorised state body.
     The  explanation  of  the  Customs  Department  states  that
neither  the  Constitution  nor  valid  system  of other laws nor
universally  recognised  norms  of  international  law  deny  the
opportunity  to  seize  property or to restrict its managing, use
or  disposal  of  under  conditions  and procedure established by
law.   The  Lazdijai  District  Court,  which  states  that  "the
amendment  of  Part  1 of Article 26 of the Republic of Lithuania
Code  of  Administrative  Transgressions  of  Law contradicts the
very  purpose  of  administrative penalty as established by law",
does   not   assess  the  fact  that  smuggling  is  a  dangerous
transgression  and  mere educative means applied to transgressors
are  not  enough. One also has to exert a corresponding influence
upon  them  and ensure protection of needs of society, as well as
to accomplish prevention of transgressions.
  
                               IV                                
     During     the    Constitutional    Court    hearing,    the
representative  of  the  Seimas  pointed  out that the legislator
amended  disputed  Article  26 of the CATL by the law of 23 April
1996 because of 2 reasons:
     1.  Article  26  of the CATL which had been in force earlier
was  not  completely  in  line  with Article 210 of the same code
which  stipulated  that  transgressions  shall "incur a fine from
1,000  to  10,000  Lt together with the confiscation of smuggling
items,  as  well  as  other  means  designated  for  transporting
smuggling  items  across  the border of the Republic of Lithuania
or   hide  them".  Whereas  Article  26  of  the  said  code  had
prescribed   that  only  "the  item  which  is  property  of  the
transgressor  shall  be  subject to confiscation". Thus these two
provisions  had  not  been  coordinated. On of them stated that a
smuggling  item,  as well as the means of its transportation, may
be  subject  to confiscation while general provisions of the code
(Article   26)   emphasised   that  only  such  an  item  may  be
confiscated   which   is   property.  Therefore,  in  attempt  to
eliminate  these  contradictions, the legislator passed a new law
and thereby coordinated these two provisions.
     2.  Lately  there  has  been  an  increase of such smuggling
cases  when  persons,  in  order  to  transport  smuggling items,
began  to  employ deliberately means of transport which belong to
other  persons  by  the  right of ownership. In such cases it was
impossible  to  apply to transgressors the administrative penalty
of  confiscation  of  the  means  of transport. Seeking to put an
end  to  smuggling,  the  legislator  in  Article 210 of the CATL
provided,  as  an  exception,  for  a  case  when  an item may be
confiscated  (including  the means of transport) which was either
an  instrument  or  item  of  transgression  of law of smuggling,
even though the said item is not property of the guilty person.
     In   the   opinion   of  the  representative  of  the  party
concerned,  the  disputed  norm  established by Article 26 of the
CATL   reflects  a  certain  peculiarity  of  responsibility.  An
exception  is  made from the general rule whereby confiscation of
the  item  which  is not property of the transgressor is provided
for.  Such  a  peculiarity  was  determined  by the circumstances
that   transgression  of  law  of  smuggling  is  widespread,  it
inflicts  much  harm  on the state and is ruinous to its economy.
In  both  legal  theory  and  valid  laws, one may detect more of
such  peculiarities  of responsibility. For instance, the CC also
provides  for  responsibility  in  such  cases  when  there is no
guilt  in  actions  of  the  person.  Therefore  the  legislator,
providing    for    exceptions,    takes   account   of   certain
circumstances.  However,  such  adopted  norms  are in compliance
with the Constitution.
     The   representative  of  the  party  concerned  is  of  the
opinion  that  on  the grounds of such arguments a conclusion may
be  drawn  that  valid  Article  26  of the CATL is in compliance
with  Article  23  of  the Constitution. This conclusion may also
be  based  on  the  norm  of Article 31 of the Constitution which
prescribes   that   "punishments  may  only  be  administered  or
applied  on  the  basis  of  law".  Likewise,  it  is possible to
assert   that  administrative  penalty  may  be  established  and
applied  only  on  the  grounds  of  law  and  taking  account of
certain  conditions.  The CATL determines that not each and every
item   may   be  confiscated  but  which  was  an  instrument  of
transgression or its immediate object.
     In   the   opinion   of  the  representative  of  the  party
concerned,  in  assessing  the  disputed  norm one must take into
consideration  the  circumstances  which  prompted the legislator
to  establish  amendments  of  Part  1 of Article 26 of the CATL.
The  subjects  of  transgressions  of  law  of smuggling were, by
special  powers  of  warrant,  using  means  of  transport  which
belonged  to  other  persons.  Under these powers of warrant they
had  very  broad  rights.  They  provided  that  the persons were
granted  the  right  to  thoroughly  use  these means and even to
sell  them.  Under  these  powers  the  principal would grant the
right  to  the  commissioner  to  perform  various actions at any
place,  including  custom-houses,  while the latter was using the
car.  Thus,  the persons who permitted transgressors to use their
cars  by  power  of  warrant  must have known in advance that the
said  vehicles  might  be  used  when  crossing the state border,
managing  affairs  at  custom-houses,  etc. The representative of
the  party  concerned  also based his opinion on Item 7 of the 16
February  1997  decision  No.  1  "On  Judicial Practice in Cases
Connected  with  Smuggling"  passed  by the Senate of the Supreme
Court of Lithuania.
     There  also  exist  laws  in  other  states,  e.g.,  Poland,
Germany,  wherein  it  is  established  that  the property of the
third  party  may  be  confiscated  which  has  been  used as the
object or instrument of a crime.
     Upon    assessment    of    all   the   circumstances,   the
representative  of  the party concerned has concluded that Part 1
of   Article   26   of   the  CATL  is  in  compliance  with  the
constitution.
     A  specialist  -  Z.  Bereišienė,  a  lawyer  at  the  Legal
Division  of  the Customs Department at the Ministry of Finance -
presented her explanations in the hearing.

     The Constitutional Court
                           holds that:                           

     1.  On  23 June 1996 the Seimas adopted the Law "On Amending
and  Supplementing  Articles 26, 35, 208, 209, 210, 211, 237, 292
and  320  of  the  Republic  of  Lithuania Code of Administrative
Transgressions  of  Law" whereby Part 1 of Article 26 of the CATL
was  amended.  It  was set forth as follows: "Confiscation of the
item   which   was   an   instrument   or   immediate  object  of
transgression   of   administrative  law  shall  be  a  coercive,
gratuitous  conversion  of  this  item  into state property. Only
the  item  which is property of the transgressor shall be subject
to  confiscation  with the exception of the item which was either
an    immediate    instrument   or   an   immediate   object   of
administrative  transgression  of  law  pertaining to legal cases
of  administrative  transgressions  of  law  as  provided  for by
Article  210  of  this  Code."  In  the  new wording of Part 1 of
Article  26  of  the CATL an exceptional rule is established that
an   instrument   or   immediate   object   of  transgression  of
administrative  law  which belonged to the transgressor of law by
the  right  of ownership shall be confiscated including the items
belonging   to  other  persons  by  the  same  right  which  were
temporarily  used  or  managed  by  the  transgressor at the time
when he was performing the said transgression.
     The  petitioner  had doubts as to the compliance of the said
norm  of  Part 1 of Article 26 of the CATL with Article 23 of the
Constitution.   This   norm   provided   that  in  the  cases  of
administrative  transgression  of  law  of  smuggling  the  items
which   were   either   an  instrument  or  immediate  object  of
performing   the   said   transgression   shall   be  subject  to
confiscation   irrespective  of  the  fact  whether  these  items
belonged  by  the right of ownership to the transgressor or other
persons  who  had  temporarily  transferred  the said item to the
transgressor of law.
     2. Article 23 of the Constitution stipulates:
     "Property shall be inviolable.
     The rights of ownership shall be protected by law.
     Property  may  only  be  seized  for  the  needs  of society
according  to  the  procedure  established  by  law  and  must be
adequately compensated for."
     From  the  standpoint  of  protection of property, the norms
of  Article  23  of  the  Constitution  wherein  the  essence  of
protection  of  the  ownership  rights  is revealed constitute an
indivisible whole.
     The  norm  "Property  shall  be inviolable" of Part 1 of the
said  article  of  the Constitution consolidates the right of the
owner  as  the  possessor  of  subjective  rights  to property to
demand  that  other  persons,  as  well  as the state, should not
violate   his   ownership   rights.   In   addition,   this  norm
consolidates  the  duty  of  the  state  to safeguard and protect
property  from  unlawful  encroachment upon it. Such a conception
of  the  norm  of  Part 1 of Article 23 of the Constitution means
that  this  norm  consolidates  intensive  protection of property
which  ensures  that  the property belonging to the owner will be
protected  by  legal  means.  At  the same time it is possible to
notice  that  this  norm  does  not give grounds to maintain that
the  Constitution  establishes  absolute  protection of property.
Making  the  ownership  rights absolute, preconditions may appear
to  violate  property  interests  of  other  persons  and also to
cause  conflicts.  One  of  the  ways  to solve them is to impose
respective  restrictions  or  restraints  on the ownership rights
in legal norms.
     The  norm  "The  rights  of  ownership shall be protected by
law"  of  Part  2  of  Article  23 of the Constitution means that
property  relations  are  the  matter  of  legal regulation. This
constitutional  norm  also  conditions  the  fact that to protect
property  a  system  of  laws is created which ensures protection
of  various  and  dynamic  property relations and the possibility
to  efficiently  utilise  property  in one's interests as well as
those  of  society.  The main principle of creating such a system
of  laws  is  coordination of its elements - legal norms aimed at
protection  of  property - as well as elimination of existing and
possible  contradictions  in  the protection of ownership rights.
Bearing  in  mind  the  fact  that  a  legal system is constantly
evolving,  coordination  of  its elements is a permanent task the
solution   of   which   is   not  always  unequivocal.  From  the
standpoint  of  compatibility  of  the system it is also possible
to  notice  quite a few evident inadequacies connected with legal
regulation  of  property  confiscation  ensuing from violation of
law.   For  instance,  Article  1421  of  the  CC  provides  that
property  may  be  seized against the will of the owner only by a
decision,  judgement  or  special  requisition  act of the court,
meanwhile  Article  237  of  the CATL determines that in the case
of  transgression  of  law of smuggling an administrative penalty
(as  well  as  confiscation  of property) shall be imposed by the
Director  and  assistant  directors  of the Customs Department at
the  Ministry  of  Finance  of the Republic of Lithuania, as well
as  heads  and  deputy heads of custom-houses. Article 163 of the
CC  once  again  in a different way consolidates a provision that
the  state  shall  be  permitted  to  gratuitously seize property
only  in  cases  and  under  procedure established by laws of the
Republic  of  Lithuania.  Article 26 of the CATL provides that an
object  or  instrument  of administrative transgression of law of
smuggling  may  be  confiscated  irrespective of the fact to whom
it  belongs  by  the  right  of  ownership,  meanwhile  Item 1 of
Article  93  of  the  Republic  of  Lithuania  Code  of  Criminal
Proceedings  provides  that  the  instruments  and means of crime
(including  smuggling)  which  belong  to  the  committer  of the
crime  shall  be  confiscated, transferred to other organisations
or destroyed.
     Creation  of  the  system  of  laws protecting the ownership
rights   also  means  that  respective  boundaries  of  ownership
rights  protection  are determined. The Constitutional Court held
in  its  13 December 1993 ruling: "as far as the theory of law is
concerned,  the  protection  of  property  rights  by legal means
presuppose,  in  turn,  appropriate limits to such protection, as
law  in  all cases of the regulation of public relations is valid
only  within  certain  limits".  Moreover,  for  many  a time the
Constitutional  Court  has  noted  that there exist no subjective
rights  which  had no protection boundaries, as law is one of the
ways  to  coordinate  public  interests  whereby balance is found
between  different,  sometimes  even  contradictory needs. One of
essential   peculiarities   of  modern  law  is  that  the  legal
mechanism   of   ownership   rights   protection  is  intensively
developed  with  which it is sought to ensure as much as possible
the  rights  and legitimate interests of the owner. However, this
does  not  mean  that the legislator, by attempting to coordinate
reciprocal  interests  of  people, as well as those of people and
society,  may  not,  in general, restrict the rights of the owner
when he is managing, using or disposing of his property.
     The  norm  "Property  may  only  be  seized for the needs of
society  according  to  the procedure established by law and must
be  adequately  compensated  for"  of Part 3 of Article 23 of the
Constitution  determines  conditions  and procedure of protection
of  the  ownership  rights.  It means that under the Constitution
property  may  be  seized  from  the owner or restrictions of the
ownership  rights  may  be  established only when such seizure or
restriction  is  provided  for  by  law. Besides, property may be
seized  from  the  owner  only  for public needs and this must be
adequately  compensated  for.  Such  a  norm  reveals  a specific
aspect  of  social  purpose  of  property  when possibilities not
only  to  protect  his  rights and accomplish interests but also,
when  realising  them,  to  take  account  of  public  needs  are
acknowledged for the owner.
     Possibilities  of  restriction the ownership rights are also
discussed  in  the  decisions  of  the  European  Court  of Human
Rights  while  deciding cases pertaining to accomplishment of the
norms  set  forth  in Article 1 of Protocol No. 1 of the European
Convention  of  Human  Rights.  It  was  noted in these decisions
that  the  notion  "in  the public interest" is inevitably broad.
The  Court,  bearing  in  mind  that  the  opportunity  of choice
granted  to  the  legislator  who  implements social and economic
policy  must  be  broad  enough, will take into consideration the
decisions  of  the legislator in defining "public interests" save
the  said  decisions  were  unsubstantially  grounded. Seizure of
property,  when  implemented  for the success of legal-social and
economic  policy,  may  be  justified  by "public interests" even
when  the  whole  society  does not make direct use of the seized
property  (the  cases James and others against the United Kingdom
(1986), Lithgow and others against the United Kingdom (1987)).
     Thus   legal   norms   which   regulate  protection  of  the
ownership  rights,  on  the one hand, constitute the property law
institute  which  determines  the  opportunity  of  the  owner to
manage,  use  and  dispose of his property at his discretion (the
right  to  property  in  its objective sense), on the other hand,
the  aforesaid  norms consolidate his opportunities to accomplish
the   ownership  rights  to  a  particular  item  (the  right  to
property  in  its subjective sense). It means that on the grounds
of  these  norms the owner of the item is entitled to demand that
his  ownership  rights  should  not  be  violated. Alongside, the
owner  is  guaranteed  the  right  to  handle  his  item  at  his
discretion  so,  however,  that  they did not contradict the law.
Therefore  the  owner,  while accomplishing his ownership rights,
must  abstain  from  acts  whereby  rights  of  other persons, or
public interests might be violated.
     3.  The  subjects  of  property relations regulated by legal
norms  possess,  as  a  rule,  not  only  certain rights but also
respective  duties.  Coordination  of  rights and duties directly
ensues  from  the  norms  provided  for  by  Article  28  of  the
Constitution  which  stipulates:  "While  exercising their rights
and  freedoms,  persons  must  observe  the  Constitution and the
laws  of  the  Republic  of  Lithuania,  and  must not impair the
rights and interests of other people".
     Such   a  coordination  of  rights  and  freedoms  manifests
itself  in  laws  by  consolidating  not  only  the rights of the
owner   but   also  imposing  respective  prohibitions  to  other
persons,   as   well  as  the  owner  himself.  The  practice  of
application  of  legal  norms  indicates that the laws regulating
the  ownership  rights are often violated not only by encroaching
upon  the  rights of the owner but also, for the owner's part, by
not  keeping  to  the  limits  of  managing,  use and disposal of
property as defined by the law.
     It   is   the   result   of   historical   development  that
implementation  of  requirements  established  in  the  norms  of
objective  law  is  based  on  not  only  the  utility  but  also
coercion  which  is  set in sanctions of legal norms. The purpose
of  a  sanction  is to define the content of responsibility which
may  occur  after  a  person  has violated the order regulated by
legal  norms.  The  essence  of  responsibility  is  a purposeful
impairment  of  the person which is specified in respective legal
norms    because    of    his    reprehensible   performance   or
non-performance  which  is  prohibited  by  the said norms. As to
its  content,  this  impairment  may  be  of  either  personal or
proprietary  character.  Besides, it should be emphasised that in
attempt  to  stop  violations  of  law, the established sanctions
are  only  one  of the elements that may be used along with other
measures of socio-economic character.
     Various  sanctions,  including proprietary ones, are imposed
for  performed  transgressions  of  law:  fine,  confiscation  of
property,  etc.  Fine,  as  well  as confiscation of property, is
seizure  of  property  from  the  transgressor and its conversion
into  state  property  due  to his transgression of law. It means
that  protection  of property for the person who has transgressed
law  narrows  to  the limits as specified by the sanction. Such a
provision  may  be  derived  from  the  Constitution,  as well as
international  legal  acts  which have been ratified by Lithuania
and  which  are  a  constituent  part  of  the  system  of law of
Lithuania.   Such  a  standpoint  regarding  restriction  of  the
ownership  rights  is  considered acceptable also under Article 1
of  Protocol  No.  1  of the European Convention of Human Rights.
It  is  established  therein  that states shall have the right to
enforce  such  laws  as they deem necessary to control the use of
property  in  accordance  with  the general interest or to secure
the payment of taxes or other contributions or penalties.
     Alongside,  one  should  bear  in mind in all cases that the
right  to  possess  property  is  one  of  inborn  human  rights.
Restriction  of  the ownership rights, along with establishing of
sanctions  prescribed  by  legal  norms,  must be precise and, if
necessary,   particularised   enough.   Laws   must  ensure  that
ungrounded  impairment  of  the  right to property is evaded, and
that  one  is  always  entitled to protect these rights in court,
as  Article  30  of  the  Constitution prescribes that any person
whose  constitutional  rights  and  freedoms  are  violated shall
have the right to appeal to court.
     A  conclusion  is  to  be  drawn  from  the  analysis of the
content  of  Articles  23  and  28 of the Constitution that it is
possible  to  establish  by  law  restriction  of  the  ownership
rights,  as  well  as  property  sanctions for violations of law.
However,  this  must  not  deny  the  essence  of  the  right  to
property.
     4.  An  administrative  violation  of  law  is  considered a
culpable   deed   (performance   or   non-performance)  which  is
contrary  to  law  whereby  human rights and freedoms, as well as
public   interests   protected   by  the  state  are  encroached.
Therefore  it  should  be  noted  that  guilt  is one of the main
elements  indicating  that  a person has transgressed law and may
be  brought  to  justice  for  this.  If  the  law  prescribed an
administrative  responsibility  without there being any guilt, as
well  as  if  a  person  were punished without being guilty, this
would   mean   an   objective  charge  incompatible  with  either
fundamentals  of  the  state under the rule of law or universally
recognised principles of human rights' protection.
     Article   21   of  the  CATL  provides  that  the  following
administrative  penalties  may  be  imposed for transgressions of
law:  (1)  warning;  (2)  fine;  (3) seizure with compensation of
the    instrument   or   immediate   object   of   administrative
transgression  of  law;  (4)  confiscation  of  the instrument or
immediate  object  of  administrative  transgression  of law; (5)
deprivation  of  a  special right (to drive a vehicle, to hunt or
to  fish)  granted  for the citizen; (6) correctional labour; (7)
administrative  arrest;  (8)  removal  from work duties (office).
Thus,  depending  on  the  danger of administrative transgression
to  society,  as  well  as the damage caused or threatened by it,
as  well  as  other  circumstances,  administrative  penalties of
various stringency are set.
     The  norm  of  Article  210  of  the CATL which provides for
responsibility  for  smuggling establishes a cumulative sanction:
the  main  penalty  -  a  fine  from  1,000  to  10,000 Lt, and a
complementary  penalty  -  confiscation  of  smuggling  items, as
well  as  that  of  transportation and other means designated for
transportation  or  hiding  smuggling  items  when  crossing  the
state  border  of the Republic of Lithuania. Part 1 of Article 26
of  the  CATL  prescribes  that  while  imposing  a  penalty  for
administrative  transgression  of smuggling, unlike than in other
cases  provided  for  in  this  code,  an  item  or instrument of
smuggling  shall  be confiscated irrespective of the fact whether
it  belongs  by  the  right  of  ownership to the transgressor or
other person.
     5.  Assessing  the  content  of  Part 1 of Article 26 of the
CATL,  one  should, first of all, discuss the immediate object of
the  said  transgression  of  law,  as  well  as the danger which
arises  from  such  a  transgression  of  law to the interests of
people, society and the state.
     Article  210  of  the CATL stipulates that an immediate item
of smuggling shall be:
     (1)  illegal  transportation  across the state border of the
Republic  of  Lithuania  of  goods  (wares,  valuable  and  other
items)  with  the  exception  of firearms, ammunition, poisonous,
radioactive,   virulent  or  narcotic  substances  providing  the
value  of  illegally  transported goods (wares, valuable or other
items) does not exceed 100 minimal subsistence levels (MSL);
     (2)    importing    or    obtaining   goods   from   abroad,
notwithstanding  the  set  permission  is possessed or duty paid,
providing  importing  or  obtaining  of  the said goods is linked
with  illegal  export,  remittance  or  sending  of  currency  or
currency  values,  pay-documents  expressed  in  litas  or  other
monetary  units,  jewellery  and  other  common  articles made of
precious   metals  and  jewels,  as  well  as  breakage  of  such
articles;
     (3)  illegal  export,  import,  sending or remittance abroad
or  from  abroad  of  currency,  pay-documents of currency values
expressed  in  litas or other monetary units, jewellery and other
common  articles  made  of precious metals and jewels, as well as
breakage of such articles;
     (4)  import  of  goods  having  no special stamps trading of
which   in  the  Republic  of  Lithuania  is  prohibited  without
special stamps or other marks;
     (5)  transportation  of  items  of personal use and of other
items  across  the  state  border  of  the  Republic of Lithuania
through   the  green  corridor  by  exceeding  the  norm  set  in
normative acts.
     The  imported  and  exported  smuggling  goods,  values  and
other  items  inflict  great  damage  on the system of Lithuanian
economy  and  finance as smugglers attempt to evade duty taxes by
illegally   imported   and  exported  goods.  Because  of  unpaid
duties,  as  well  as unchecked quality etc. of imported goods or
other  items,  smuggling  goods  have, as a rule, lower price and
thus  they  illegally  compete  with  respective  goods which are
manufactured  in  this  country  or  those  legally imported from
abroad.   In   view   of  illegally  imported  non-firearms,  gas
pistols,  psychotropic  substances,  goods of poor quality, etc.,
danger  may  arise  for  the  health  of  people of this country.
Illegal  export  of  national  values  may  also be associated to
irreparable  harm  to national culture or economy. Thus smuggling
is  one  of  the  most dangerous transgressions of administrative
law.  This  transgression  causes  damage  not  only  to economic
interests  of  the  country where the goods are imported but also
often  to  those  of  the  country  from which they are exported.
Thus   virtually   all  states  concern  themselves  in  stopping
smuggling  in  the most efficient way. Due to this reason states,
as  a  rule,  impose  stringent  property sanctions for smuggling
transgressions,  as  well  as  take  other financial and economic
measures to stop them.
     Transporting  smuggling  goods which belong to either him or
another  person,  a transgressor of law deliberately transgresses
Lithuanian  duty  laws and thereby causes danger to the system of
economy  and  finances  of  Lithuania,  or  to the health or even
life  of  its  people,  i.e.  he  utilises  them as the object of
transgression  of  law  as  provided  for  by  Article 210 of the
CATL.   Illegally  imported  goods  are  seriously  dangerous  to
public  and  state  interests  irrespective  of  the fact whether
they  belonged  to  the  person  who  was transporting them or to
other  persons.  Therefore  a  conclusion is to be drawn that the
legislator  established  an  essentially  adequate  complementary
penalty  -  confiscation  of  the  object  of smuggling - for the
said transgression of administrative law.
     6.  In  assessing  whether  the norm of Part 1 of Article 26
of  the  CATL  which  provides  for  a  supplementary  penalty  -
confiscation  of  the  items  of  administrative transgression of
law  of  smuggling belonging to either the transgressor of law or
other  persons  - is in compliance with the norm of Article 23 of
the  Constitution,  first of all one must take account of causing
of  great  damage  to  society  by  the said transgression of law
which has been discussed.
     The  Constitutional  Court  notes that laws have been passed
in  foreign  countries,  too,  permitting  to confiscate property
which  belongs  to the third party in cases when it has been used
during  a  commitment  of  crime  or  transgression of law. There
also  are  countries the laws of which provide for an opportunity
to  confiscate  not the item itself but a corresponding its value
sum  of  money from the immediate transgressor of law. Alongside,
it   is   attempted  that  laws  providing  for  confiscation  of
property  in  connection with a transgression of law performed by
the  transgressor  would  not  groundlessly violate his rights to
property  or  those  of  the  third party. Provided a question of
application  of  such  a  sanction  for  the transgressor occurs,
laws  permit  to  take  into  consideration  the  danger  of  the
performed  transgression  of law, as well as indirect culpability
of  the  third  party  in  the  complicity  of  performing of the
transgression  of  law. In exceptional cases, they provide for an
opportunity  to  confiscate  only part of the property, or not to
confiscate it at all, etc.
     One  of  the  elements restricting the rights to property is
prohibition  to  use  property  in a way inflicting harm on other
persons  or  society.  This  prohibition  remains irrespective of
the  fact  whether  the  owner himself manages, uses and disposes
of  his  property,  or  whether  it has been transferred to other
persons  for  management  or  use. Article 305 of the CC directly
stipulates  that  the tenant must use the property taken on lease
according  to  the  agreement and its purpose. It is evident from
Article  366  of the CC that the receiver of the item of use must
keep  to  the  same management as the tenant and is liable to the
person  who  has  transferred  the  use.  This  means  that after
granting  on  lease  or  transferring  an  item for use the owner
still has an interest in the future of the said item.
     By  making  agreements of temporary transfer of property for
management  and  use, various conditions and diverse procedure of
management  and  use  of  property  may  be  established in them.
Providing  the  parties  do  not establish such conditions in the
agreement,  it  is  universally recognised in civil law, that the
creditor  is  entitled  to  require that the temporary manager or
user  of  his  property  treat it as a clever and careful person.
It  goes  without  saying, the temporary manager of property must
act  in  no  case  on  purpose  so that the property of the other
person which is run by him be endangered.
     One  should  note  that  Article  143  of  the  CC specifies
different  protection  of  the  ownership  rights  when:  (a) the
owner  has  by  himself  transferred his property to someone else
for  management  or  use;  (b)  such  property  has been lost, or
seized,  or  ceased  to  be  managed by the owner irrespective of
his will.
     An   item   (a   car,   motorcycle,  etc.)  which  has  been
temporarily  transferred  by his owner to the transgressor of law
for  management  or  use  could  be  used  as  an  instrument  of
transgression  of  law  of  smuggling.  At  the  present time the
owners   of   means   of  transport  usually  transfer  them  for
temporary  use  to  other  persons  by power of warrant (Articles
397-405  of  the  CC).  Similarly,  the  means of transport which
have  been  used  as  an  instrument  of  transgression of law of
smuggling  may  be transferred for temporary management or use by
agreements  of  use  (Articles  366-373  of  the  CC),  or  lease
(Articles 297-317) or other agreements.
     The  owner,  by  transferring  a car by power of warrant for
performance  of  legal  acts,  thereby  grants  the  right to the
commissioner  to  manage  and  use  the  car, to take care of its
technical  condition,  to  be  the representative of the owner at
the  police,  insurance  and  other  offices, to sign and perform
for  the  owner  all  acts linked with the said power of warrant.
The  analysis  of  such an agreement permits to discern in it not
only  authorisation  but  also  use  or  lease, and, to a certain
degree, disposal of the said item.
     Administrative  transgression  of  law  of  smuggling may be
performed  only  by  deliberate  actions. The transgressor of law
understands  that  he is transporting goods in violation of laws,
and  he  wishes  to  do  so.  Performing  this  transgression, he
deliberately  makes  use  of the item (a car, etc.) which belongs
to  the  other  person  by the ownership right. It means that the
transgressor   of   law   creates   such  a  situation  with  his
deliberate  illegal  actions  in  which  other  person's property
temporarily  managed  or  used  by  him  may  be  lost,  as it is
established  by  the  law  that the instrument of smuggling shall
be  confiscated  irrespective  of  the fact who is its owner. The
transgressor  of  law  deliberately ignores such a threatening of
the  law.  Therefore  legal  effects occur which are provided for
by  the  law:  confiscation of the property (the car, etc.) which
has been an instrument of smuggling.
     Part   1   of  Article  26  of  the  CATL  establishes  that
confiscation  shall  be a coercive, gratuitous conversion of this
item  into  state  property.  It means that on the grounds of the
law  the  item  which  has  been the instrument of administrative
transgression  of  law  is  no  longer managed and used either by
its   temporary   user   or  the  owner  as  this  instrument  of
transgression  of  law  becomes  state  property. In other words,
the state becomes a legitimate gainer of the said property.
     Alongside,   one  should  note  that,  by  transferring  his
property  to  other  persons  for management or use, the owner of
property   always   runs  the  risk  to  a  certain  degree.  The
temporary   user   or   manager  of  property,  contrary  to  the
agreement  made,  or the purpose of the item, or the interests of
the  owner,  can  damage,  ruin  or  otherwise lose the said item
with  his  deliberate or negligent actions. Article 152 of the CC
prescribes  that  the  owner  shall  hold  the risk of accidental
destruction  of  the  item. By transferring his property to other
persons  for  temporary  management or use, the owner remains the
owner   of  the  transferred  property,  therefore  the  risk  of
accidental  destruction  of  the  said  item falls on him. In the
case  of  administrative  transgression  of law of smuggling, the
temporary   manager   or   user  of  property  has  received  the
instrument  (the  car, etc.) of this transgression from the owner
by  the  consent  of the latter. As the owner has transferred his
property   to   another  person  by  agreement  having  power  of
warrant,  or  that  of  use,  lease, etc., and the latter lost it
while   performing   administrative   transgression   of  law  of
smuggling,  the  right  of  the owner to exact it from its honest
gainer  (the  state)  is  restricted.  Confiscation  of  the item
which  belongs  to the third party and which was an instrument of
administrative  transgression  of  law  of  smuggling as provided
for  by  Part  1  of  Article 26 of the CATL is to be compared to
factual   destruction   of  the  item,  therefore  the  owner  is
deprived  of  the opportunity to retrieve it in kind. However, he
may  claim  to  pay  damages  from the manager or the user of the
item  who  has  performed  such  a  transgression  of law. Such a
regulation  of  legal relations by the disputed law is designated
for  imposing  stricter responsibility of the transgressor of law
for  his  actions  and  may  not be regarded as punishment of the
third party.
     The  rights  of  the  owner are protected differently in the
case  when,  for  the  purpose  of smuggling, the transgressor of
law  has  used  an  item  (a car, etc.) which has been managed or
used  illegally.  In  such  a case the law protects the rights of
the  owner  also  from  the  honest  gainer of the said property.
Article  143  of  the  CC prescribes that the owner has the right
to  exact  the  property  from  its  honest  gainer providing the
owner  or  another  person  to  whom the owner has transferred it
for  management  has  been  lost or seized from either of them or
seized  to  be  managed  irrespective  of  their  will. This is a
universally  recognised  rule  of  protection  of  the  right  to
property.
     Taking  account  of  the  motives set forth, a conclusion is
to  be  drawn  that  the norm of Part 1 of Article 26 of the CATL
stipulating  that  "only  the  item  which  is  property  of  the
transgressor   shall   be   subject   to  confiscation  with  the
exception  of  the  item which was either an immediate instrument
or  an  immediate  object  of administrative transgression of law
pertaining  to  legal  cases  of administrative transgressions of
law  as  provided  for  by  Article  210  of  this  Code"  is  in
compliance with the Constitution.

     Conforming  to  Article  102  of  the  Constitution  of  the
Republic  of  Lithuania and Articles 53, 54, 55 and 56 of the Law
of  the  Republic  of  Lithuania on the Constitutional Court, the
Constitutional Court has passed the following
                             ruling:                             

     To  recognise  that  the norm of Part 1 of Article 26 of the
CATL  stipulating  that  "only  the item which is property of the
transgressor   shall   be   subject   to  confiscation  with  the
exception  of  the  item which was either an immediate instrument
or  an  immediate  object  of administrative transgression of law
pertaining  to  legal  cases  of administrative transgressions of
law  as  provided  for  by  Article  210  of  this  Code"  is  in
compliance with the Constitution of the Republic of Lithuania.
  
     This  Constitutional  Court  ruling is final and not subject
to appeal.
     The  ruling  is  promulgated  on  behalf  of the Republic of
Lithuania.