Investigation ‘Pantastic’: EPPO carries out searches in Slovakia in probe into customs fraud scheme involving public officials

(Luxembourg, 22 October 2026) – At the request of the European Public Prosecutor’s Office (EPPO) in Bratislava (Slovakia), searches and investigative measures were conducted on Tuesday and Wednesday in Slovakia, in an investigation into a suspected customs fraud scheme to import textiles and footwear from China involving public officials, code-named ‘Pantastic’. 

Searches and inspections were carried out at the premises of import companies, customs representatives and transport companies in Slovakia. Five customs officers were also questioned. At least 50 suspects are under investigation.

On the radar of the EPPO is an organised criminal group involving several importing companies, carriers and customs representatives, which set up and operated a fraudulent scheme where large quantities of goods were smuggled from China to the EU, by abusing the Customs Procedure 42 (CP42). This procedure, created to simplify cross-border trade, exempts importers from paying VAT in the country of importation, if the imported goods are subsequently transported to another EU Member State. The tax must then be paid upon release of the goods.

The import companies and customs representatives involved in the scheme, operating between January 2016 and December 2019, allegedly issued at least 3 681 false Single Administrative Documents (SADs) to facilitate the import of Chinese textiles and footwear into the EU through multiple entry points, including ports in Germany and Slovenia. 

According to the findings, the goods were then transported by truck to the customs offices of Nitra and Trnava, in Slovakia, where they were declared for customs clearance and released for free circulation. The suspects falsely declared that the ultimate destination of the goods was Czechia, Poland and the UK, in order to benefit from the exemption to pay VAT while the goods were on transit. However, they knew in advance that the goods would not be delivered to the recipients identified in the documents, but instead to other operators in different EU Member States, without VAT being paid in the Member State where the goods were actually delivered.

The scheme also appears to have involved systematic undervaluation of imported goods to reduce customs duties. 

As a result of these practices, it is estimated that at least €44.3 million in customs duties were evaded, while unpaid VAT amounts to over €190 million. 

In addition, individuals employed by customs offices, members of the financial administration and law enforcement officers allegedly breached their duties by accepting bribes from members of the criminal group. In return, they facilitated the release for free circulation of significantly undervalued goods under the CP42 VAT exemption procedure, on the basis of falsified documents. According to the findings of the investigation, the total amount of bribes paid to these public officials is estimated at €12 million. 

The investigation was initiated following a report from the European Anti-Fraud Office (OLAF) and is supported by the Slovak Financial Administration Criminal Office (Kriminálny úrad finančnej správy).

All persons are presumed innocent until proven guilty by the competent Slovak 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.