Romanian customs officers targeted by EPPO investigation into imported tobacco tax fraud scheme

Romanian officers at the Siret Customs Office, the main customs point at the Romanian border with Ukraine, were allegedly involved in a fraud scheme orchestrated to evade the payment of taxes and custom duties on imported tobacco, according to the European Public Prosecutor's Office (EPPO). Individuals and companies from Czechia, Germany, Italy, Lithuania, Poland, Slovakia, and Ukraine were also part of the scheme.

As part of this investigation, EPPO Iasi carried out eight searches on Tuesday, April 4, including at the headquarters of the Siret Customs Office and the residences of customs officials.

EPPO said that "several individuals and companies from Czechia, Germany, Italy, Lithuania, Poland, Slovakia and Ukraine put in place a fraudulent customs circuit for the importation of processed tobacco (hookah and pipe tobacco) from the United Arab Emirates and Turkey."

These tobacco products were ostensibly destined for third (non-EU) countries, meaning they were only transiting the EU. This allows for the suspension of the payment of taxes until the goods are acquired in the country of their final destination. But EPPO said evidence showed that the goods did not leave the EU area and were instead sold on the black market in some EU countries, including Belgium and Germany. And the Romanian customs officers were involved in the scheme.

The facts allegedly occurred between June 2017 and January 2018, when a total of 50 shipments of processed tobacco products were declared as being in transit through the EU. Most originated from Italy (35), but there were also shipments starting from Germany (eight), Lithuania (six) and Czechia (one).

"The investigators believe that the vehicles declared at the Siret Customs Office as transporters of tobacco were, in reality, empty, to simulate the transit to third countries and evade the payment of taxes and custom duties," EPPO said in the press release.

"As a consequence, the goods were sold within EU countries at huge profits, while evading tax, excise and VAT collection. It is estimated that the scheme caused damages of over EUR 650,000 in customs duties alone."

To recover the damages to the national and EU budgets, the law enforcement agents have seized real estate (five properties) and cash in different currencies, including Euro, US dollars, Romanian Leu and Ukrainian Grivna.

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