(Luxembourg, 10 October 2024) – At the request of the European Public Prosecutor’s Office (EPPO) in Bologna (Italy), two new freezing orders totalling €12.3 million were granted against suspects of VAT fraud relating to the illegal importation of fabric from China.
During the execution of the new freezing orders, the Italian Financial Police (Guardia di Finanza) of Prato seized over 3.6 million linear meters of fabric, with an estimated value of €4.9 million. In addition, €133 600 in cash was found at the home of a suspect, and over €128 000 has been frozen in a bank account.
As previously reported, the investigation targets several companies suspected of evading VAT on the import of over 13 600 tonnes of textiles, worth around €63 million, from China into the EU. The suspects, including owners and managers of customs shipping companies in Prato and Bologna and Chinese entrepreneurs, are suspected of smuggling, forgery, and issuing fake invoices. Despite declaring the imports, they failed to move goods to tax warehouses, allowing immediate release without paying VAT. This scheme caused an estimated VAT loss of over €13 million.
Earlier in this investigation, two freezing orders had already been granted.
The new freezing orders were granted after the investigation identified a new suspect, believed to be a co-perpetrator of the crimes. In addition, an attempt to fraudulently conceal assets of one of the companies under investigation, in order to avoid the forfeiture from the financial administration for fiscal debts, was also uncovered.
All persons concerned are presumed to be innocent until proven guilty in the competent Italian courts of law.
The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU.