Confiscation under Section 20 AWG in Germany

By Dr. Julius Hagen, Attorney-at-Law

Why section 20 AWG is often the economic centre of the case

Section 20 AWG becomes relevant where a foreign trade case is not only about criminal or regulatory liability, but about the confiscation of specific items or value. At that stage, the key questions are which assets are said to qualify as offence objects or offence instruments, whether further asset-related measures are in play, and against whom they may be directed.

Confiscation is not a minor side issue

Foreign trade cases are often discussed in terms of embargoes, sanctions breaches, or licensing questions. For many clients, however, the most serious pressure comes from something else: whether goods, assets, equipment, vehicles, or their value may be taken away permanently. That is where section 20 AWG becomes critical.

Confiscation can turn a difficult investigation into a major commercial crisis. It may affect not only the direct suspect, but also companies, owners of goods, vehicle holders, or other parties linked to the relevant assets.

What section 20 AWG actually covers

Section 20 AWG primarily concerns offence objects and offence instruments. In practical terms, that may include the goods to which the alleged violation relates and the items used to commit or prepare the conduct. Depending on the case, this may involve products, documents, technical equipment, vehicles, or other specifically offence-related property.

That must be distinguished from confiscation measures directed at proceeds or value obtained from the alleged conduct. Those measures do not simply follow the same analysis as confiscation of offence objects and offence instruments under section 20 AWG, but are shaped primarily by the general confiscation rules of criminal law and administrative-offence law.

Many disputes turn on legal classification

Not every commercially relevant item is automatically confiscable. In many cases, the real dispute begins with classification: is the property truly an offence object, an offence instrument, or neither? Is it legally linked to the alleged conduct, or is the authority relying on a broad economic narrative without a precise legal basis?

That question becomes especially important in layered supply chains, group structures, logistics arrangements, and international trade settings. Looking only at outward possession or at the authority’s label is rarely enough. What matters is the specific factual role of the item and its precise legal connection to the alleged violation.

Third parties may be exposed as well

Confiscation issues do not always stop with the person against whom the main allegation is directed. They may also affect companies or third parties that own vehicles, goods, or other assets said to have been involved in the relevant conduct.

These cases require a careful analysis of knowledge, attribution, ownership, and the actual role of the third party. In corporate settings involving divided responsibilities, logistics providers, freight forwarders, or affiliated entities, confiscation cannot be justified simply because an asset was close to the transaction.

The pressure usually starts early

Confiscation disputes often arise long before the final outcome of the case. They may begin with seizure measures, asset restraint, provisional freezing, or the authority’s assertion that certain property or value was obtained from the conduct under investigation. Clients who respond too quickly at that stage often help create the factual basis for a much broader asset case.

Experience in confiscation, asset restraint, and property-related exposure under foreign trade law

We represent companies, directors, and individuals in matters where the real issue is not only the allegation itself, but the confiscation of goods, proceeds, replacement value, or other asset-related consequences. Our work includes analysing the legal basis of confiscation, reviewing ownership and attribution questions, reconstructing payment and shipment structures, and developing a defence strategy that addresses criminal, regulatory, and financial exposure together.