Italian police raid Amazon sites in smuggling probe linked to Chinese goods
Italian authorities carried out raids at two Amazon facilities in Italy on Monday as part of a probe into alleged smuggling of Chinese goods, according to sources with direct knowledge of the investigation.
Dozens of officers from the Guardia di Finanza (Italy’s tax police) and the customs agency seized around 5,000 products at a logistics hub in Cividate al Piano, located in the northern province of Bergamo. The seized items included toys, mobile phone covers, air fryers, pens, and small scissors, News.Az reports, citing Reuters.
At Amazon’s Italian headquarters in Milan, authorities confiscated IT equipment and identified the manager responsible for goods transportation within Italy. Amazon did not immediately respond to requests for comment.
Italian prosecutors allege that Amazon may be acting as a kind of “Trojan horse”, allowing Chinese goods to enter Italy without proper taxation, according to a court document. This investigation is part of a broader inquiry into a €1.2 billion tax evasion case, which involved suspected smuggling by multiple Italian companies that may be fronts for Chinese entities.
The investigation focuses on goods entering Italy from China through unknown channels, bypassing sales taxes and customs duties, before being sold on Amazon’s marketplace. Authorities are examining potential violations of both Italian law and the EU customs code.
Since last summer, Amazon has cooperated with two other ongoing operations, highlighting the complexity of monitoring goods in its logistics network. Sources estimate the number of products involved could reach half a million, and prosecutors expect the probe to extend to other EU countries.
In July, Milan prosecutors briefed counterparts from Germany, France, the Netherlands, Poland, Spain, Belgium, Sweden, and Ireland at Eurojust, the EU agency for criminal justice cooperation, on the investigation’s scope.
The case adds to ongoing scrutiny of Amazon’s European tax practices. In the initial €1.2 billion tax evasion case, Milan prosecutors investigated three managers and Amazon’s Luxembourg-based European unit for alleged tax fraud related to online sales in Italy between 2019 and 2021.
Authorities claim that Amazon’s algorithm allowed sales of non-EU goods, mainly from China, without proper disclosure, potentially enabling sellers to avoid paying Italian sales taxes. Under Italian law, intermediaries facilitating such sales are jointly liable for unpaid taxes.
Amazon has previously stated it is “committed to complying with all applicable tax laws.” Meanwhile, the European Public Prosecutor’s Office (EPPO) is investigating Amazon’s accounts from 2021 to 2024 following stricter EU VAT rules for online marketplaces.
Similar news
