The EU’s chief public prosecutor on Thursday warned that criminal gangs, notably Chinese, were committing widespread customs and VAT fraud across the European Union.
“We see in the last 4 years and a half…that we are invaded by criminal groups belonging to third countries, especially Chinese,” said Laura Kovesi, head of the European Public Prosecutor’s Office (EPPO).
“Organised crime groups have brought VAT and customs fraud to an industrial level. We have to fight back,” warned Kovesi.
“You think only drug trafficking is violent? Not any more. We have wiretaps of very nasty people planning murders for VAT and customs fraud,” said Kovesi, speaking in the Greek port of Piraeus.
Since 2016, Chinese shipping company Cosco has been the majority shareholder in Piraeus , Greece’s largest port, in which it has a two-thirds stake.
“Dangerous organised crime groups” had “created a criminal ecosystem supported by corruption of customs and tax officials, customs brokers and bank staff,” Kovesi said.
The EPPO last month announced the largest container seizure ever in the EU, when at least 250 million euros (US$293 million) was impounded in Piraeus.
The operation saw six people, including two customs officers, arrested as part of “Operation Calypso.” They face accusations of customs duty and value-added tax fraud on goods entering the EU.
See also: ‘Hanger war’: Italy’s fast fashion hub becomes Chinese mafia battlefield
Some 2,435 containers, mostly containing electric bicycles, textiles, and footwear, were seized. Many of the goods had been undeclared, misidentified or undervalued to avoid higher duties.
The fraudulent scheme is believed to have been operating for at least eight years, resulting in an estimated loss of at least 350 million euros in customs duties and 450 million euros in VAT, according to the EPPO.
The body was set up in June 2021 to investigate and prosecute offences likely to harm the EU’s financial interests, including cross-border VAT fraud and transnational crime.
