European prosecutors have unearthed a large-scale fraud involving falsified documentation of Chinese imports entering Europe via the Greek port of Piraeus, resulting in an estimated loss of nearly 700 million euros (approx. $820 million) in customs duties and VAT revenue.
The investigation carried out by the European Public Prosecutor’s Office (EPPO) spans 14 EU countries and involved raids in Greece, Spain, France and Bulgaria, the EPPO said in a statement on Thursday.
Ten suspects were arrested, including two customs officers during more than 100 searches conducted at the offices of customs brokers and other locations on Wednesday.
E-Bikes, E-Scooters Seized
Law enforcement agents seized thousands of e-bikes and e-scooters, as well as 480 containers for further checks and verification in the Port of Piraeus, with freezing orders issued to seize real estate, boats and bank accounts.
Some 5.8 million euros in different currencies were seized, including 4.75 million euros in Greece, as well as several firearms and other weapons seized in the houses of three of the suspects. Eleven properties in Spain were also seized, as well as 27 vehicles and luxury items, the EPPO said.
How Did The Scheme Work?
The EPPO said the scheme involved several criminal networks mainly controlled by Chinese nationals who handled Chinese imports into the EU, their distribution and sales, as well as money laundering and sending the profits back to China, the EPPO said.
After the goods from China arrive in the EU, mainly through the port of Piraeus, they are undervalued or misclassified to evade custom duties, cleared by customs brokers and sold to companies in other EU states through the scheme designed to avoid the VAT payment, the EPPO said.
It added that the criminal organisations under investigation produce the false invoices and transport documents to conceal the real destination of the goods, and recruit a network of sham companies that sell the products at very competitive prices, since VAT remains unpaid and customs duties and anti-dumping fees are largely evaded.
($1 = 0.8541 euros)
(With inputs from Reuters)
