On Monday, Italian authorities executed a series of searches and seizures at two Amazon locations as part of an ongoing investigation into the suspected smuggling of goods from China. According to sources with direct involvement in the case, law enforcement targeted the e-commerce giant’s facilities in Italy to address significant regulatory concerns.
A contingent of agents from the Guardia di Finanza, Italy’s financial police, along with the customs agency, confiscated approximately 5,000 items from a logistics hub based in Cividate al Piano, located in the Bergamo province. This incident sheds light on the increasing scrutiny surrounding e-commerce operations and their compliance with tax regulations.
At the Amazon headquarters in Milan, authorities seized IT equipment and identified key personnel responsible for the transport of goods throughout Italy, aiming to unravel the complexities of this case. As of now, Amazon has not provided any comment regarding these developments.
Legal representatives claim that Amazon may be facilitating an environment akin to a “Trojan horse,” enabling unaccounted Chinese goods to circulate within the Italian market without appropriate taxation. An official court document outlines these serious allegations.
The types of products seized at the Bergamo facility included toys, mobile phone accessories, air fryers, pens, and small scissors, illustrating the diverse range of merchandise potentially affected by these operations. As investigations unfold, the implications on Amazon’s Italian activities remain uncertain.
The smuggling inquiry is an extension of a broader investigation into a staggering 1.2 billion euro tax evasion case. Prosecutors in Milan, together with the Monza wing of the Guardia di Finanza, accuse numerous Italian firms of facilitating smuggling activities while allegedly masquerading as legitimate businesses for Chinese entities.
Authorities suspect that goods are entering the European Union through undisclosed channels from China and subsequently entering Italy without the requisite payment of sales taxes or customs duties. Reports suggest that these items are being marketed and sold on Amazon’s platform, prompting lawmakers to investigate both smuggling violations and breaches of the EU customs regulations.
Since the previous summer, there have been multiple operations underway, with Amazon cooperating to address the complexities of its logistics frameworks. It has been estimated that as many as half a million items could be involved, with expectations for the investigation to expand beyond Italy into other EU member states.
In July, Milan prosecutors presented their investigative findings to officials from other EU countries, including Germany, France, and the Netherlands, at a Eurojust meeting in The Hague, furthering international collaboration on this pressing issue.
The ongoing disputes surrounding customs duties and sales tax have already strained relations with the United States, casting a shadow over how this investigation involving Chinese goods will be perceived in Washington and Brussels.
In the prior tax evasion case, investigators scrutinized three Amazon managers and its European unit based in Luxembourg, probing alleged tax fraud concerning online sales from 2019 to 2021. Prosecutors maintain that Amazon’s algorithms facilitate the selling of non-EU goods, largely from China, without revealing their origin, thereby aiding in the evasion of Italian sales taxes.
Under Italian legal frameworks, intermediaries facilitating sales must shoulder joint liability for any unpaid sales taxes incurred by non-EU sellers using their platform. While Amazon has previously asserted its commitment to comply with tax legislation, the situation remains contentious.
As part of the original tax evasion investigation, Italy’s tax agency has presented a settlement proposal to Amazon, which the company must evaluate by December. In a parallel development, the European Public Prosecutor’s Office (EPPO) has launched a review of Amazon’s financial activities from 2021 to 2024, particularly in light of new EU regulations aimed at tightening VAT compliance for marketplaces.
