WARSAW, Sept 2, 2008 (AFP) - Prosecutors said Tuesday september 2nd they are investigating a Polish jewellery firm producing replicas of Nazi-era memorabilia for a buyer in Germany.

Its headquarters were searched by the Internal Security Agency, spokeswoman Malgorzata Klaus at the prosecutor's office in the southwest city of Wroclaw told the domestic PAP news agency.

The raid turned up Nazi replicas including swastikas, military insignia and rings with skulls modelled on those worn by Nazi Germany's SS troops.

"It is legal to produce such items for the needs of film producers or collectors," Klaus said.

"But it is illegal to publicly promote a fascist state system," she said, adding the investigation would focus on whether the firm could be charged with publicly promoting fascism -- which carries a prison term of up to two years.

According to the Polska newspaper, the items were produced for a German citizen from former East Germany. The distribution or wearing of Nazi-era symbols is banned in Germany.