The sector is not the problem. The evidence position is.
Fashion lives on fast collections, long supply routes and tight calculations — and precisely that combination has moved textile imports into the focus of European enforcement. The lever sits earlier than in other sectors: not at resale, but at the customs border, at the declared value and in the import procedure. This does not put the trade under blanket suspicion: sector risk creates grounds for scrutiny, not guilt. But anyone trading imported goods should be able to evidence the customs and tax trail of their stock — even where others handled it.
Why this sector is under scrutiny
The cases of the European Public Prosecutor’s Office (EPPO) trace a clear route:
- Calypso (action day 25 June 2025, led from Athens, Madrid, Paris and Sofia): Chinese imports through the port of Piraeus — textiles, footwear, e-scooters, e-bikes — with systematic under-invoicing and misclassification; estimated damage of around €700 million across 14 countries. 101 searches, ten arrests including two customs officers, 480 containers seized; September 2025 brought the indictment of six suspects and the seizure of more than 2,400 further containers at Piraeus.
- Venice (10 August 2026): a carousel involving clothing imports from China, damage above €33 million, two house arrests. Remarkable for the defence is the investigators’ own finding: the companies involved were formally managed by front persons who, on the state of the investigation, “played no effective role in managing the companies and may have been unaware of the offences committed through the businesses for which they were registered as directors”.
- Prato/Bologna (since July 2023): a continuing series of seizures in textile smuggling from China — including measures against a freight forwarder (€7.3 million), 237,000 garments and 5.5 million metres of fabric (January 2026), and goods worth €11 million (June 2026).
- Early cases: as far back as 2022 the EPPO froze €8.5 million held by seven companies of a Chinese clothing wholesale centre in Padua; France pursued customs-value manipulation in fashion imports, and in 2024 Paris traced fraudulent Chinese imports back to the port of Piraeus.
Two systemic shifts sharpen the picture. First, where under-invoicing is systematic, customs values may be determined from EU-wide statistical aggregates — the “lowest acceptable price” — if physical inspection is no longer possible and the goods description is vague (Keladis, January 2026). Second, customs procedure 42 — import with exemption from import VAT because an intra-Community supply follows — is the fraud structures’ preferred entry gate: goods enter the EU untaxed and the missing trader sits in the country of destination. For participants acting in good faith, the CJEU has kept the flank open (Vetsch: no loss of the import exemption without one’s own involvement in the fraud).
The typical constellations
The port route with procedure 42. Import into Greece or another member state, zero-rated onward supply across the EU, default at the recipient. A German buyer at the end of the chain often never sees the customs stage — yet that is exactly where the allegation arises.
Under-invoicing as a pricing advantage. Container goods declared below any plausible sourcing price generate combat prices at resale. The buyer appears to benefit — and purchases an evidential problem: why was this price explainable?
Front-director structures. The Venice case shows companies with formal directors who had no real function. For the defence this cuts both ways: the investigators themselves distinguish between control and formal role — a person who merely signs is not automatically an offender. At the same time: whoever takes office takes on evidential responsibility.
Seizure as the first strike. Calypso and Prato show that in the import trade the first measure hits the goods themselves — containers, warehouses, accounts. The economic impact arrives before any finding of guilt.
Your red flags
- Purchase prices below a plausible customs value plus freight and margin — the “lowest acceptable price” issue
- Vague goods descriptions on invoices and packing lists (“textiles”, “mixed goods”)
- Procedure-42 goods without a traceable import and tax record
- Suppliers reachable only through agents, forwarders or messenger services
- Counterparties with formal directors and no recognisable function
- Bill of lading, packing list and invoice telling different stories (port, quantity, value)
- Strikingly young trading companies offering large allocations immediately
What affected businesses should do now
If an import investigation touches your supply chain, the buffer perspective applies: you are not responsible for third parties’ customs work — you must show your own audit trail. Secure, per consignment, the purchasing documentation, price plausibility record, origin and transport papers and the payment route; clarify the status of seized goods in writing; respond to freeze and seizure signals immediately with structure, not explanations. The standard comes from supplier due diligence with the red-flag catalogue, the evidence structure from Proof of Check; if assets are frozen: asset freeze under Section 324 AO. If matters are already serious: emergency — the first 72 hours.
FAQ
We buy imported goods from EU ports — do we have to check our upstream suppliers’ customs handling?
You do not have to perform it, but you must be able to plausibilise it: price level, goods route, tax status of the stock. Under Vetsch, the import exemption is not lost by those not themselves involved in the fraud — and under Kittel/Aquila the authority must prove constructive knowledge on objective evidence. Your documented plausibility check is precisely the counter-evidence.
What does the statistical minimum price (“lowest acceptable price”) mean for our purchasing?
The administration now works with EU-wide price statistics. Buying clearly below them is not prohibited — but it requires explanation. Document the reason for the price advantage (clearance lot, season, quality, direct sourcing) before anyone asks. Statistical values are no substitute for evidence on the individual transaction; that is your defence flank.
In our group, a family member is registered as director in name only — what is the risk?
The Venice case shows both sides: the investigators themselves concede that formal directors may have known nothing of the offences — role is not guilt. But the office carries tax duties and liability exposure (Sections 69, 34 German Fiscal Code). Whoever signs without managing needs documented control and information structures all the more.
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Acutely affected?
Unannounced inspection, dawn raid, seizure or asset freeze: emergency — the first 72 hours or call the emergency line directly.