China, EU – Baltic States, Legislation, Markets and Companies, Taxation, Transport

Over a one month period (February-March 2014), OLAF and the participating Chinese customs authorities detected more than 1,500 containers where the declared customs value was heavily undervalued.

This included false descriptions of goods, false weights and quantities, and counterfeit goods. In addition, customs authorities succeeded in identifying several so-called missing traders and non-existent importers, triggering a number of criminal and administrative investigations in several countries.

Operation SNAKE

This joint customs operation had particular significance as, for the first time ever, it also involved Chinese customs authorities. Operation "SNAKE" specifically targeted the undervaluation of imported goods, which causes huge losses to public budgets every year.

Algirdas Šemeta, Commissioner responsible for Customs and Anti-Fraud, commenting in the operation underlined that operation SNAKE once again proved the benefits of joining forces at global level to fight a common threat. The undervaluation of imported goods is an endemic problem worldwide, affecting not only EU customs, but also those of other countries, including China.

He argued that this operation paved the way for many more successful initiatives by OLAF and other countries to combat fraudulent activities.

European Anti-Fraud Office (OLAF)

The mission of the European Anti-Fraud Office is threefold:

= it protects the financial interests of the European Union by investigating fraud, corruption and any other illegal activities;

= it detects and investigates serious matters relating to the discharge of professional duties by members and staff of the EU institutions and bodies that could result in disciplinary or criminal proceedings; and

= it supports the EU institutions, in particular the European Commission, in the development and implementation of anti-fraud legislation and policies.

Success in joint efforts

Undervaluation of imported goods causes huge losses to the EU and Member States’ budgets every year. When goods are imported into the EU, they are subject to specific customs duties, based on the real value of the goods. However, some criminals fraudulently declare a lower value on their goods, to the detriment of public budgets, in order to increase their profit margins. Operation SNAKE was carried out to specifically target this type of fraud and generate increased intelligence, stronger cross-border cooperation and a more effective crack-down on undervaluation in the future.

The operational phase of Operation SNAKE took place from February to March 2014. Coordinated by OLAF and the Anti-smuggling Bureau of the General Administration of China Customs, it involved the customs administrations of all EU Member States, as well as those of the People's Republic of China. The participants cooperated using a secure communication channel developed by OLAF for this type of operation. On 4 and 5 September, all participating officials met at OLAF’s headquarters in Brussels to present the final results of the Operation. The Commission and the General Administration of China Customs intend to continue this successful cooperation with further initiatives.

For more information see:

= Information on OLAF: http://ec.europa.eu/anti_fraud/index_en.htm;

= For further details on previous JCOs, see:

http://ec.europa.eu/anti_fraud/policy/joint-customs-operations/index_en.htm;

= Homepage of Commissioner Šemeta:

http://ec.europa.eu/commission_2010-2014/semeta/index_en.htm;

= European Commission, IP/14/1001 “Operation SNAKE: EU and Chinese customs join forces to target undervaluation of goods at customs”, 12.09.2014, In:  

http://europa.eu/rapid/press-release_IP-14-1001_en.htm