Coordinated raids expose vast EU-wide fraud importing undeclared goods from China using false documents.
The European Public Prosecutor’s Office (EPPO) has led a sweeping cross-border operation to dismantle a major criminal network flooding the EU with fraudulent imports from China. Code-named “Calypso,” the investigation has exposed a €700 million ($753 million) scam based on customs and VAT fraud.
In coordinated raids on 25 June, authorities conducted 101 searches across Greece, France, Spain and Bulgaria. Ten suspects were arrested, including two customs officers. Seized assets include €5.8 million ($6.2 million) in cash, 7,133 e-bikes, 3,696 e-scooters, 27 vehicles, luxury items and 11 properties in Spain. In Greece, orders were issued to freeze real estate, boats and bank accounts.
The EPPO said the criminal networks, “mainly controlled by Chinese nationals,” operated a one-stop import and distribution racket. Goods were brought into the EU via the port of Piraeus using fake invoices and false declarations to dodge customs duties and anti-dumping charges.
The merchandise, which included textiles, footwear, e-bikes, and e-scooters, was falsely cleared through a network of brokers, accountants, and legal advisers. Shell firms, primarily registered in Bulgaria but using Greek VAT numbers, then routed the goods to other Member States using Customs Procedure 42 (CP42), which allows for VAT-free imports if goods are resold across borders.
However, the supposed buyers in countries like Czechia, Denmark and Germany never received the goods. Many were “missing traders,” established solely to evade VAT. The goods were instead stored in private warehouses controlled by the criminal groups and sold on the black market in France, Italy, Poland, Portugal and Spain.
While the seizures included 480 containers at the port of Piraeus, no breakdown of their contents has been released. The listed items – textiles, shoes, e-bikes, and e-scooters – are common in such scams, but not exclusive to them. High-margin, compact goods, such as printer cartridges, which have long been targeted in customs and VAT fraud, may also be among the undeclared items. Without manifest-level detail, their presence cannot be ruled out.
Firearms and edged weapons were also recovered from suspects’ homes, underlining the threat level of those involved.
Authorities estimate losses of over €250 million ($269 million) in unpaid customs duties, which directly impact the EU budget, and nearly €450 million ($484 million) in VAT fraud, affecting both national and EU finances. EPPO noted that the actual total may be significantly higher.
While cartridges were not named among the seized goods, the structure of the Calypso operation strongly resembles known cases involving counterfeit printer consumables. The Recycler has previously reported on similar schemes where imaging consumables – particularly toner cartridges – were fraudulently declared to avoid duties or imported under false VAT registrations. Europol and national customs agencies have long linked such practices to organised crime, and Chinese-controlled logistics hubs have repeatedly featured in both counterfeit cartridge cases and broader fraud investigations.
The EPPO-led investigation was supported by Europol, the European Anti-Fraud Office (OLAF), and national law enforcement bodies including the Hellenic Police, France’s National Anti-Fraud Office (ONAF), Bulgaria’s State Agency for National Security (DANS) and Spain’s Tax Agency.
The EPPO said this case “highlights the value of cross-border cooperation against organised crime” and reaffirms its mission to protect the EU’s financial interests.
All suspects are presumed innocent until proven guilty.
