Exporting Art Abroad Can Lead To Arrest, Seizure

(MENAFN- USA Art News) While purchasing art and artifacts abroad is typically legal, bringing them home can pose significant challenges for collectors and tourists due to strict export regulations in many countries. Countries worldwide implement laws to retain cultural property, often restricting export rather than sale, a policy reinforced by agreements like Memoranda of Understanding with the U.S. State Department.

For example, Italy's 2004 Code of Cultural Heritage and Landscape mandates an export license for“cultural goods” over 50 years old. Germany's 2007 law empowered individual state governments to deny export licenses for items considered national patrimony, even those not of German origin. This regional authority was later centralized under the federal government with the 2016 KGSG reform. In both nations, buying the object is legal, but exporting it without a license is not. Such decisions can take weeks to months. Furthermore, governments like Greece and Turkey claim ownership of newly discovered artifacts, meaning undocumented items can lead to detention, questioning, and criminal charges.

“There are a lot of things that are just not exportable,” said Peter Tompa, a lawyer and former co-chair of the American Bar Association's Art & Cultural Heritage Law Committee. He added that attempting to export such items could result in arrest by local customs officials or seizure by U.S. Customs if designated as cultural property from one of the 30 countries with U.S. agreements.

Reliable information on export rules is often difficult to obtain. Foreign embassy staff may be unhelpful, and street vendors cannot be trusted. The Federal Bureau of Investigation reports that many stolen cultural properties entering the U.S. are brought in by buyers unaware of the items' true provenance. To avoid issues, experts advise against buying from untraceable sellers, being wary of suspiciously low prices, and consulting art advisors or galleries in the U.S. and abroad.

If an item is denied an export license or seized, buyers should not expect a refund or recovery from the seller, according to Paul Cossu, a partner at the New York law firm Pryor Cashman. Organizations like the Art Dealers Association of America or international trade groups such as the British Antique Dealers Association and CINOA also do not typically assist in such disputes.“Whether a license is granted or not is a risk the prospective buyer should evaluate; it's also not the dealer's responsibility,” said Paul Hewitt, director general of the Society of London Art Dealers, noting that SLAD does not get involved in client disputes.

Lawyers can help draft purchase agreements that hold the price in escrow until an export license is secured. Beyond export restrictions, the total cost of acquisition can be significantly higher than the list price. Buyers may face value-added tax (VAT) ranging from 17 to 27 percent in EU countries, luxury taxes up to 7 percent, and resale royalties up to €12,500 for works by living or recently deceased artists. Additionally, U.S. buyers must pay sales or use tax upon filing tax returns.“The greatest misconception is often that the purchase price represents the total cost of acquisition,” explained Holly Baxter, a San Francisco-based art advisor. She highlighted that international shipping, insurance, VAT, royalties, customs fees, and import duties can substantially increase the overall expense.

While original artworks, including drawings, paintings, prints, and sculptures, are exempt from U.S. import duties, enforcement can be inconsistent. Huw Lougher, managing director of London's Lougher Contemporary Gallery, noted that some qualifying artworks are incorrectly assessed for the 10 percent blanket duty, causing“operational headaches” for non-U.S. galleries and their clients.

We previously reported:

A new subscription service, Art House, aims to make original art accessible by removing the barriers of cost, commitment, and "taste anxiety."

Source: Observer Arts

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