Italy: EPPO seizes over 2.2 million meters of smuggled fabric from China in customs fraud investigation

Italy: EPPO Seizes Over 2.2 Million Meters of Smuggled Fabric

On 6 November 2025, following a request from the European Public Prosecutor’s Office (EPPO) in Bologna, the Italian Financial Police (Guardia di Finanza) in Prato conducted searches and confiscated over 2.2 million meters of fabric, along with documents and electronic devices. This was part of an investigation into customs fraud involving the smuggling of raw materials and textile goods from China.

Details of the Smuggling Scheme

The case centers on a network importing products directly from Chinese suppliers to Italian storage facilities. The suspects allegedly used false suppliers, buyers, and addresses to conceal their operations.

Fake legal entities created across Europe rerouted invoices and payment orders from legitimate Italian companies.
This method simulated intra-EU purchases to evade customs duties and import VAT payments.
Although the storage locations remained constant, the registered legal entities at these addresses were frequently closed and replaced.
This allowed the suspects to continue operations long-term while avoiding financial oversight and keeping import volumes below detection thresholds.

International Investigations

Investigative actions, including searches, were also carried out in Germany and Poland. Authorities discovered that the alleged perpetrators established fake legal entities in these countries to further simulate intra-EU trade.

“The scheme further made use of fake legal entities across Europe to reroute the invoices and payment orders received by legitimate Italian companies, thus simulating an intra-EU purchase to avoid custom duties and import VAT payments.”

This investigation highlights a sophisticated effort to bypass customs regulations through false documentation and corporate fronting.

Author’s Summary

A complex smuggling operation involving fake companies and forged documents allowed suspects to evade customs duties and VAT on over 2.2 million meters of fabric imported from China, uncovered by EPPO and Italian authorities.

European Public Prosecutor’s Office — 2025-11-06