The Piraeus Chamber of Commerce and Industry stands for the full investigation of the case uncovered by the coordinated raid of the European Public Prosecutor’s Office, which is damaging the image of the port of Piraeus, as well as the import and export trade of our country. The demand of the PCCI, from the Customs Authorities and the Independent Authority for Public Revenue (A.A.D.E.), is the acceleration of checks on the 2,435 containers that have been seized at the port of Piraeus, containing Chinese products imported by profiteers with minimal or no duties and VAT. The presidency of the Chamber, in its recent meeting with the Governor of A.A.D.E., Mr. Giorgos Pitsilis, discussed the problems faced by its member-companies, as, due to the checks, significant delays have been recorded in import and export procedures with containers, given that the existing personnel of the customs services is insufficient and, moreover, at a time when the Customs services at the port of Piraeus have been consolidated. Beyond this, it creates additional problems for the recipients who, due to the delays, are burdened with additional costs from the “demurrage” charges for the containers staying in the port area.
Strict customs controls, duties, and “anti-dumping” are, perhaps, the top three “trade defense” measures, applied individually by each member state of the European Union to protect domestic production from unfair trade practices by third countries. “Dumping” occurs when a company exports products at prices lower than their normal value in the domestic market, often even below the cost of production, in order to gain market share in another country or a single market and harm local producers. Thus, “anti-dumping” comes as an additional duty imposed on imports of that product, to neutralize the injury caused to the local and, more generally, the European industry. It is common for Chinese companies to sell various goods in the EU or to price them below cost, with a Chinese “exporter-seller” from the country of shipment, and also a Chinese “importer-buyer” in the country of receipt. That is, “Chinese pays, Chinese drinks”. Also, “exports” are now made from Chinese platforms directly to the European consumer C2C, “China to consumer” without duties, but only with €2 for each parcel valued up to €150.
The EU, to address unfair competition, in addition to strict customs controls, can impose countervailing duties and restore healthy competition, when it is found that the imported products have benefited from state subsidies in the country of origin, resulting in them being sold at artificially low prices. The goal is to offset the advantage gained by the foreign company through the subsidy and to protect domestic production and European craft and industry from “material injury”. For example, if a government subsidizes the production of electric bicycles, and these are imported into the EU at low prices, then it can impose countervailing duties to balance the effect of the subsidy.
Conventional duties vary depending on the description of the bicycle on the bill of lading and the tariff classification, starting from 6% of the value for simple bicycles and reaching almost 80% for electric ones, while anti-dumping duties from China and other countries reach up to +48.5%.
The European Anti-Fraud Office (OLAF), since 2024, had communicated, via an information bulletin, to all 27 EU member states, about a possible pan-European fraud concerning the importation of electric bicycles, clothing items and footwear, without the payment of conventional duties and VAT, due to under-invoicing. Subsequently, OLAF, in consultation with the General Directorate of Customs of the Independent Authority for Public Revenue (AADE), monitored import-sales that are suspected of fraud, while they began to identify the warehouses where goods are stored without having paid the correct import duties at the entry gates. Importantly, online sales and purchases where various goods are shipped to end consumers, either as “used” or as “gift”, also began to be checked. According to the European Delegated Prosecutors’ Office in Greece (EPPO), the 2,435 containers are related to front companies in Athens, Madrid, Paris and Sofia, which imported goods into the EU from China, resulting in the loss of customs and tax revenues due to the under-invoicing of the goods. The investigation, codenamed “Calypso”, uncovered the fraud with the total damage to European funds estimated to exceed 700 million euros.
The controls must follow the general direction imposed by the EU for the entire range of “cheap” Chinese products imported into European countries, on the condition, however, that the products described as the contents of the containers are declared correctly. Measures must be implemented to protect the domestic industry from unfair competition, maintain jobs and productive activity, but also ensure fair trade practices, in accordance with the rules of the World Trade Organization. The measures are imposed and implemented by the EU, the investigation and enforcement of the measures is carried out by OLAF, in cooperation with national audit mechanisms and bodies. At the international level, the process is based on WTO rules, which many invoke, but only when and as it suits them. It is obvious that the “gap” created in the declarations accompanying the containers, regarding what is declared and what is actually transported, concerns the liner shipping companies and the local Customs Authorities, as it is used for all kinds of illegal activities.
The president of the Piraeus Port Authority (OLP), Vasilis Korkidis, stated:
“The unified Customs office of Piraeus does not have the numerical human resources to run the required checks in a large port. Also, the seized containers create a problem at the freight station, as they occupy a large storage space, resulting in a problem for smooth traffic flow. The Greek Authorities at the port of Piraeus, one of the main entry gates for Asian products into Europe, must intensify control measures, in order to protect healthy entrepreneurship, the legality of imports and exports, the consistency of maritime transport, but also every private individual responsible for a company, as well as every public official from customs frauds, which ultimately cost very dearly. OLP states that it will support the effort of AADE.
for full digitization, absolute transparency and greater speed in customs procedures».
