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Italy executes EPPO freezing order in textile smuggling VAT fraud

14 Jun '24

2 min read

Italy executes EPPO freezing order in textile smuggling VAT fraud

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At the request of the European Public Prosecutor's Office in Bologna, a freezing order of over $7.34 million issued by a local court was executed against four individuals and a firm accused of VAT fraud in the illegal import of fabric from China.
The probe targets eight individuals and seven firms for importing 13,600 tonnes of textiles from China to the EU.

At the request of the European Public Prosecutor’s Office (EPPO) in Bologna, Italy, a freezing order of over €6.8 million ($7.34 million), issued by a local court, was executed last week against four individuals and a company suspected of value-added tax (VAT) fraud related to the illegal import of fabric from China.

The Italian Financial Police (Guardia di Finanza) of Bologna executed the freezing order and managed to freeze over €620,000 (~$669,495) on the bank accounts of the suspects, apart from seizing over €27,000 (~$29,155) in cash during searches, an EPPO release said.

The investigation targets eight individuals and seven companies suspected of evading VAT on the import of over 13,600 tonnes of textiles worth around €63 million from China into the European Union (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 (~$14 million), leading to the freezing of assets worth €7.3 million (~$7.88 million) in April this year.

The EPPO is the independent EU public prosecution office responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the bloc.

Fibre2Fashion News Desk (DS)

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