EPPO Unveils Complex EU Customs Evasion Scheme Involving Gelatine Imports from Brazil

• The European Public Prosecutor's Office (EPPO) is investigating a suspected customs evasion scheme involving gelatine imports from Brazil.
• Affiliated companies may have undervalued raw materials imported from Brazil, resulting in underpayment of customs duties and estimated losses of approximately €285 000 between 2021–2023.
• International cooperation with Brazilian authorities was crucial to the investigation, which involved searches at various locations in Germany, Belgium, and Brazil.

The scheme allegedly involved a subsidiary company in Brazil invoicing its parent company with a lower price, which was then used as the basis for calculating customs duties.

A complex customs evasion scheme has been uncovered by the European Public Prosecutor's Office (EPPO) in Frankfurt, Germany, involving gelatine imports from Brazil. The investigation, code-named 'Gummy Bear', revealed that affiliated companies may have undervalued raw materials imported from Brazil, resulting in underpayment of customs duties. This could have led to significant financial losses for the EU, estimated at approximately €285 000 over the period between 2021–2023. The scheme allegedly involved a subsidiary company in Brazil invoicing its parent company with a lower price, which was then used as the basis for calculating customs duties. However, within the year, the subsidiary submitted additional debit notes for the same products without integrating them into the customs value, as required by law.

The investigation benefited from international cooperation with Brazilian authorities, including the Federal Revenue Service (Receita Federal), Federal Police (Polícia Federal) and Federal Public Prosecutor's Office (Ministério Público Federal). Searches were conducted at the subsidiary's premises in São Paulo, Brazil, as well as at various locations in Germany and Belgium. In Germany, officers from the Stuttgart Customs Investigation Office (Zollfahndungsamt Stuttgart) searched the main company's premises, a customs representative's office, a logistics centre, and the residence of suspects. The Belgian Federal Judicial Police (CDGEFID) were also involved in a house search in the province of Flemish Brabant. Electronic evidence, documents, and a phone were seized during these searches.

The European Public Prosecutor's Office (EPPO) is responsible for investigating and prosecuting crimes against the financial interests of the EU. The EPPO led this investigation, code-named 'Gummy Bear', which aims to uncover the extent of customs evasion involving gelatine imports from Brazil. The EPPO works closely with national authorities in member states to protect the EU's financial interests. This case highlights the importance of international cooperation and the need for companies to comply with customs regulations to avoid underpayment of duties, which can result in significant financial losses.

Lawyers advising clients on international trade should be aware of the potential for undervaluation of raw materials and subsequent underpayment of customs duties, which can result in significant financial losses. Compliance officers should also monitor for similar schemes involving gelatine imports from Brazil.

Source: Original reporting via [Source Name]