Compliance in Art Transactions: Export Restrictions and Legal Risks

​The increasingly interconnected global art market is subject to a complex regulatory landscape that governs the import and export of cultural property. The laws surrounding these movements not only address tax and customs aspects but also protect national cultural heritage, setting stringent criteria for the preservation and management of artworks. Failing to comply with these regulations not only presents a legal risk but can also lead to significant reputational and financial damage for entities involved, such as auction houses, galleries, and investors. Understanding international regulations, as well as local specifics, is crucial to avoid issues related to sanctions, seizures, and the loss of value of artworks.

Export Restrictions on Cultural Property:

Many countries impose strict restrictions on the export of cultural property, particularly those works of art that are considered an integral part of national heritage. These laws arise from the need to preserve history and culture, protecting the most significant works from illicit trafficking and looting.

An emblematic example is Italy, where Law 1089 of 1939 stipulates that all artworks of particular historical or artistic value are subject to export restrictions. In recent years, the Italian Ministry of Culture has rejected numerous export requests, particularly for ancient works, to preserve the national cultural heritage.

In this context, the export of a significant artwork may be prohibited or restricted by local authorities unless certain legal requirements are met. Therefore, the buyer must be aware of the legitimacy of the export and conduct thorough due diligence to avoid the risk of penalties or even the seizure of the artwork.

The Complexity of International Laws:

Tax and Legal Implications International regulations governing the export and import of artworks are continually evolving in response to geopolitical changes and new threats to cultural heritage. UNESCO, with its 1970 Convention, laid the groundwork for combating the illicit trafficking of artworks, requiring signatory states to adopt appropriate measures to protect cultural heritage. However, the interpretation and application of these laws vary from country to country.

Managing Artworks from Countries with Stringent Legislation:

For companies and investors operating internationally, it is essential to understand not only general regulations but also specific restrictions tied to individual countries. Countries such as Italy, Greece, Egypt, France, and India, which possess enormous cultural heritage, have laws that strictly regulate the export of artworks, imposing heavy fines or sanctions on those who fail to comply.

A notable case involves the restitution of stolen artworks, such as the famous Riace bronzes, which were illegally exported in the 1970s and later returned to Italy. The legal management of artworks from similar contexts requires in-depth knowledge of local regulations and meticulous compliance activities. Auction houses and galleries, if not adequately informed, may find themselves involved in legal disputes that compromise their operations and irreparably damage their reputations.

The Role of van Berings:

van Berings provides highly specialized legal advice for all entities involved in the international art market. Our team of experts is equipped to guide clients through the complex regulations surrounding the export and import of artworks, minimizing the legal and reputational risks associated with non-compliance.

With extensive experience in the sector, van Berings offers advice on:

• Verifying export restrictions and protecting cultural heritage.
• Advising on how to handle the stringent legislations of countries with particularly protective laws.
• Managing legal risks related to the ownership and transfer of artworks, offering practical solutions to avoid issues arising from international disputes or regulatory changes.
• Ensuring compliance with tax and customs regulations for international cultural property transactions, with a focus on ever-evolving regulations.

In an ever-changing international regulatory landscape, van Berings provides its clients with the assurance of secure and compliant management of international operations in the art sector.