Home / Knowledge / News / Textiles / Prison term for large scale textile smuggling from China
Prison term for large scale textile smuggling from China
27
Nov '09
A two-and-a-half year prison term and fines totalling almost 50 million Euros is the punishment imposed on an individual responsible for large scale fraud involving textiles imported from China. The scheme, now punished by a court in Vienna, Austria, concerned the evasion of several million Euros in customs duties and VAT. The European Anti-Fraud Office (OLAF) uncovered the illegal activities in co-operation with the Austrian customs and partner services from several other EU-Member States.

The Director-General of the European Anti-Fraud Office (OLAF), Franz-Hermann Brüner, said: “The ruling of the Austrian court shows that close co-operation between OLAF and customs investigators in the Member States leads to concrete results. Together, we are able to protect the European taxpayers from considerable damage caused by fraudsters who are trying to flood EU markets with their products without paying the necessary duties”.

The ruling by the Criminal Court (Landgericht) in Vienna of 27 October 2009 was based on a case brought by the public prosecutor's office in Vienna that followed investigations by OLAF and the Austrian customs investigations services. These investigations were part of wide-ranging enquiries during which OLAF co-ordinated the work of customs investigation services from several EU-Member States. EUROJUST and EUROPOL also contributed to the success of the operation.

The fraud scheme involved the importation of textiles from China, firstly, by understating the value of the products in order to evade customs duties, and, secondly, the fraudsters also illegally evaded the payment of VAT; mainly small customs clearance agents were used to do the customs clearance. The goods were subsequently cleared in the Member State of arrival without paying the VAT and were then transported into another Member State of destination, where the VAT would have had to be paid by the consignees. However, in this scheme the majority of consignees were either non-existent or disappeared from the scene after a short period in operation. Customs investigators also discovered a printing workshop where invoices were systematically forged.

European Commission


Must ReadView All

UNIDO, eWTP discuss strengthening ties to back e-commmerce

Textiles | On 25th Apr 2018

UNIDO, eWTP discuss strengthening ties to back e-commmerce

United Nations Industrial Development Organisation director general...

Courtesy: HueTrap

Apparel/Garments | On 25th Apr 2018

Making sustainability affordable is a big challenge

In a lot of instances, being sustainable comes with an additional...

Courtesy: Formosa Petrochemical Corporation

Textiles | On 25th Apr 2018

Formosa to set up petrochemical plant in Louisiana

Formosa Petrochemical Corporation has selected St. James Parish in...

Interviews View All

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Top executives
Textile & apparel bodies

The decision to reduce GST on MMF yarn to 12% is transformational

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search