Italy: EPPO Seizes Over 2.2 Million Meters of Smuggled Fabric
Luxembourg, 6 November 2025 – Acting on a request from the European Public Prosecutor’s Office (EPPO) in Bologna, the Italian Financial Police (Guardia di Finanza) in Prato carried out searches and confiscated over 2.2 million meters of fabric, along with documents and electronic devices, in a customs fraud probe.
Details of the Investigation
The case targets a smuggling operation involving raw materials and textile products imported directly from suppliers in China to storage facilities in Italy. The perpetrators allegedly used fake suppliers, buyers, and delivery addresses to facilitate the scheme.
- Fake legal entities across Europe were created to reroute invoices and payment orders originally meant for legitimate Italian companies.
- This method simulated intra-EU trade to evade customs duties and import VAT.
- Although the storage locations remained constant, the associated legal entities at these addresses were regularly dissolved and replaced to avoid detection.
Modus Operandi
By frequently changing company names while maintaining the same storage premises, the suspects managed to continue operations long-term, evade financial authority scrutiny, and keep import activities under alert thresholds.
Cross-Border Investigations
Investigative actions, including searches, extended to Germany and Poland, where fake companies were reportedly set up to further simulate intra-EU trade as part of the fraud.
"Fake legal entities were established by the alleged perpetrators to simulate intra-EU trade."
Author’s summary: The EPPO-led operation uncovered a sophisticated cross-border textile smuggling scheme exploiting fake companies to avoid taxes and customs duties within the EU.