Nine Czech companies are being investigated by the European Public Prosecutor’s Office (EPPO) over suspected large-scale customs fraud and VAT evasion linked to imports of textiles, shoes and e-commerce goods from China into the EU.
Multiple searches and other investigative measures were carried out on Friday in Czechia and Slovakia at the request of EPPO offices in Bratislava and Liberec, the organisation announced.
The probe, code-named “Podlimit”, focuses on alleged abuse of “Customs Procedure 42” — an EU import process that allows VAT to be deferred in the country where goods enter the bloc if they are then transported to another member state, with tax due when the goods are released there.
The suspected scheme ran between June 2017 and December 2018 and involved imports entering the EU through several locations, including ports in Germany, Poland and Slovenia.
Claims of false paperwork and diverted shipments
Investigators suspect the companies used false “Single Administrative Documents” — paperwork used for customs declarations — to bring Chinese goods into the EU, including textiles, footwear and e-commerce products, EPPO said.
Goods were then moved by truck in sealed containers to Slovakia for customs clearance, but instead of reaching their declared destination in Czechia, shipments were allegedly redirected to other locations.
EPPO stated it suspects many declared transactions existed only on paper, with goods entering the black market without VAT being paid in the country where they were actually delivered.
The case also involves suspected undervaluation of imports to reduce customs duties, and allegedly false information given to Slovak customs authorities about shipment destinations.
Customs duties are estimated to have been reduced by at least €24.1 million and unpaid VAT to total more than €113.3 million across nearly 4,000 consignments.
All persons are presumed innocent until proven guilty, the organisation noted.
