(Luxembourg, 21 January 2026) – At the request of the European Public Prosecutor’s Office (EPPO) in Bologna (Italy), the Italian Financial Police (Guardia di Finanza) of Prato have seized 237 000 garments and over 5.5 million metres of fabric, as part of an investigation into a VAT fraud involving the smuggling of textile products from China.
The goods were found in four hidden warehouses controlled by Chinese individuals in Prato, a city known for its textile industry. This seizure comes after a previous one of 2.3 million metres of fabric in November 2025, raising the total estimated value of assets seized to €10 million.
The investigation concerns a smuggling scheme where products are imported from Chinese suppliers to storage premises in Italy, with a view to avoid customs duties and VAT payment obligations, by allegedly using fake suppliers, buyers and delivery addresses. Evidence shows that the scheme also relied on fake companies set up across Europe – mainly registered in Poland and Germany – to reroute the invoices and payment orders from actual Italian buyers. This made it appear as though the goods were purchased within the European Union, allowing the suspects to avoid paying customs duties and import VAT.
Based on the evidence, in the last three years the fraud scheme allowed the suspects to evade import VAT and custom duties to the amount of €3.6 million.
All persons concerned are presumed innocent until proven guilty in the competent Italian courts of law.
The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU.