Background on Laura Kovesi and the European Public Prosecutor’s Office (EPPO)
Laura Kovesi, the Chief Prosecutor of the European Public Prosecutor’s Office (EPPO), has been at the forefront of combating cross-border crime within the European Union (EU). Established in 2017, the EPPO aims to investigate and prosecute crimes that harm the financial interests of the EU. Kovesi, who previously led Romania’s National Anticorruption Directorate, brings extensive experience in tackling corruption and organized crime.
Chinese Criminal Groups Targeting Customs and VAT Fraud
In a recent warning, Kovesi highlighted the growing involvement of criminal groups, particularly those from China, in widespread customs and Value-Added Tax (VAT) fraud across the EU. Over the past four and a half years, these third-country-based criminal groups have escalated their activities to an “industrial level,” according to Kovesi.
The Scale and Impact of the Fraud
Kovesi emphasized that these criminal organizations have created a “criminal ecosystem” supported by corrupt customs and tax officials, customs agents, and bank personnel. The fraudulent scheme has been operating for at least eight years, causing an estimated loss of €350 million in customs duties and €450 million in VAT, as reported by the European Prosecutor’s Office.
Operation Calipso and Key Arrests
In the context of “Operation Calipso,” the European Prosecutor’s Office (EPO) announced its largest-ever container seizure within the EU. In a significant operation at the port of Piraeus, Greece – majority-owned by Chinese shipping company COSCO since 2016 – authorities confiscated at least €29.3 million ($34.1 million) worth of goods.
- Arrests: Six individuals were apprehended, including two customs agents.
- Charges: They face accusations of customs duty and VAT fraud related to goods entering the EU.
- Seized Containers: Approximately 2,435 containers were confiscated, mostly containing electric bicycles, textiles, and footwear.
- Underdeclaration and Misidentification: Many goods were either underdeclared, misidentified, or undervalued to avoid higher tariffs.
The Broader Implications of Chinese Involvement in EU Customs Fraud
The increasing involvement of Chinese criminal groups in EU customs fraud raises concerns about the potential links between transnational crime and geopolitical interests. As China’s influence expands globally, so does the need for vigilance against criminal activities that could undermine the integrity of international trade and finance systems.
Key Questions and Answers
- Who is Laura Kovesi? Laura Kovesi is the Chief Prosecutor of the European Public Prosecutor’s Office (EPPO), responsible for investigating and prosecuting crimes that harm the financial interests of the European Union.
- What is the nature of the fraud? The fraud involves underdeclaration, misidentification, and undervaluation of goods to evade customs duties and VAT payments.
- Which groups are primarily responsible? Criminal organizations, particularly those from China, have been identified as the main perpetrators of this widespread fraud.
- What is Operation Calipso? Operation Calipso is a significant investigation led by the European Prosecutor’s Office targeting customs and VAT fraud, resulting in the confiscation of €34.1 million worth of goods.
- Why is this issue important? The growing involvement of Chinese criminal groups in EU customs fraud highlights the need for international cooperation to safeguard global trade and finance systems from transnational crime.
