- Slovak authorities, at EPPO’s request, searched companies and questioned customs officers in a large customs/VAT fraud probe involving textile and footwear imports from China, code-named “Pantastic.”
- The scheme allegedly abused Customs Procedure 42 (CP42), which allows VAT deferral/exemption on imports if goods are declared for onward movement to another EU Member State, while VAT is due upon release.
- From 2016 to 2019, suspects are alleged to have filed at least 3,681 false customs declarations, falsely stating final destinations in Czechia, Poland, and the UK to avoid VAT in the actual country of delivery.
- Investigators also found systematic undervaluation of goods to reduce customs duties; estimated losses are at least €44.3 million in customs duties and over €190 million in unpaid VAT.
- The case also involves alleged bribery of customs, tax administration, and law enforcement officials, with around €12 million in bribes paid to facilitate release of the goods.
Source: eppo.europa.eu
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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