An Italian judge has issued a freezing order covering over 7.8 million meters of fabric and more than 237 000 garments, as part of an ongoing investigation into a VAT and customs fraud involving the smuggling of textile products from China.
The order from the Judge for Preliminary Investigations in Prato came at the request of the European Public Prosecutor’s Office (EPPO) in Bologna (Italy).
As previously reported, the goods, with an estimated market value of approximately €11 million, had been seized as evidence during searches carried out in warehouses in Prato. Following further investigative activities, the EPPO established the exact quantity and value of the seized products, as well as the amount of customs duties and import VAT allegedly evaded. On this basis, the court ordered their preventive freezing, with a view to their possible confiscation and sale by public auction.
The investigation concerns a suspected smuggling scheme involving textile products imported from China and stored in warehouses in the Prato textile district. According to the evidence, the goods were transported using altered transport documents and subsequently regularised through false invoices referring to fictitious commercial transactions involving companies in several EU Member States, including Germany, Hungary and Poland.
The investigation identified a network of companies allegedly used to conceal the true origin and destination of the goods and to evade customs duties and import VAT. Based on the evidence gathered so far, the estimated damage exceeds €4 million.
All persons concerned are presumed innocent until proven guilty in the competent Italian courts of law.
The European Public Prosecutor’s Office (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.
