EPPO Naples: Seizes  5M Steel Products in Italy Customs Fraud Probe

• The European Public Prosecutor's Office in Naples seized over €5 million worth of steel products in an investigation into customs fraud.
• The fraud involved the alleged misclassification of steel imports from Türkiye as zinc-coated steel to evade additional duties and VAT.
• Physical examination and laboratory tests confirmed the products did not match their declared classification.
• The scheme is estimated to have caused a loss of approximately €3.5 million to EU and national budgets.
• The investigation is ongoing, emphasizing the EPPO's role in protecting the EU's financial interests.

This steel import duty evasion Italy is estimated to have resulted in a loss of approximately €3.5 million to both the EU and national budgets, highlighting the substantial financial impact of such illicit activities on public funds.

The European Public Prosecutor's Office (EPPO) in Naples, Italy, has orchestrated the seizure of steel products valued at over €5 million at the port of Naples. This significant action is part of an ongoing investigation into alleged EPPO Italy steel customs fraud, specifically targeting imports originating from Türkiye.

Working in conjunction with the Economic and Financial Police Unit in Naples and the Anti-Fraud Office of the Italian Customs and Monopolies Agency (ADM) in Campania, authorities confiscated a total of 454 packages of steel products. The operation also involved conducting searches at the premises of companies implicated in the import activities and at private residences, leading to the seizure of electronic devices relevant to the inquiry.

The investigation commenced following a report from the Naples office of the Italian Customs and Monopolies Agency concerning two specific steel imports that occurred in July 2026. An Italian company operating within the metalworking sector was identified as the importer, having received the goods from a Dubai-based exporter. This Italian firm had engaged a customs representative to manage and submit the necessary import declarations on its behalf.

Investigators allege that the imported goods were deliberately misclassified as zinc-coated steel products. This specific customs classification fraud EU was reportedly chosen because it would have exempted the imports from additional duties typically applied to certain steel products entering the European Union. However, subsequent physical inspections and laboratory analyses conclusively demonstrated that the products did not correspond to the declared classification, rendering them ineligible for the duty exemption.

The alleged scheme, involving the zinc-coated steel misclassification, was purportedly designed to circumvent both the applicable additional duties and the related Value Added Tax (VAT). This steel import duty evasion Italy is estimated to have resulted in a loss of approximately €3.5 million to both the EU and national budgets, highlighting the substantial financial impact of such illicit activities on public funds.

The European Public Prosecutor's Office, an independent body of the European Union, is specifically tasked with investigating, prosecuting, and bringing to judgment crimes that adversely affect the financial interests of the EU. This case underscores the EPPO's commitment to combating customs fraud and protecting the integrity of the Union's financial systems. The investigation remains active, and all individuals involved are presumed innocent until proven guilty in the competent Italian courts.

This case serves as a stark reminder for companies importing goods into the EU, particularly high-value commodities like steel products from Türkiye, of the critical importance of rigorous due diligence. Businesses must ensure the utmost accuracy in their customs declarations and product classification to mitigate the significant risk of customs fraud and VAT evasion. The European Public Prosecutor's Office Naples is actively pursuing cases that directly impact EU financial interests, demonstrating a heightened enforcement environment.

Legal and compliance departments within importing companies should proactively review their internal controls and supplier agreements. Such scrutiny is essential to guarantee precise reporting and to avoid the severe penalties that can arise from misclassification or other forms of customs irregularities. The financial and reputational consequences of failing to adhere to strict customs regulations can be substantial, as evidenced by the estimated €3.5 million loss in this particular instance.

Companies importing goods into the EU, particularly steel products, must conduct thorough due diligence on customs declarations and product classification to mitigate the significant risk of customs fraud and VAT evasion, as the EPPO is actively prosecuting cases that impact EU financial interests. Legal and compliance teams should review internal controls and supplier agreements to ensure accurate reporting and avoid severe penalties.

Source: Original reporting via European Public Prosecutor's Office