Cyprus customs disrupt international customs fraud ring

Between June and September 2026, the Cyprus Customs Department successfully dismantled a large-scale customs fraud operation involving imports from China. Authorities identified newly established economic entities that were systematically abusing the EU 'Procedure 42' customs mechanism. This process allows for the import of goods from non-EU countries with an initial VAT suspension, provided the goods are destined for final consumption in another member state. Investigators found that cargo was shipped from China through Greece to Cyprus, where only minor duties were paid, before being falsely declared as 'Union goods' to be sent back to Greece or Bulgaria, thereby evading substantial VAT payments.

The operation resulted in the seizure of 13,788 counterfeit garments and numerous non-compliant electronic devices, including car monitors, MP3 players, and chargers, which lacked required EU safety certifications. Customs spokesperson Giorgos Konstantinou stated that these activities are linked to an international criminal network responsible for defrauding fourteen countries of over 700 million euros. The current findings are reportedly connected to previous large-scale seizures, such as the 'Calypso' operation at the port of Piraeus. Three initial cases have already led to the collection of more than 39,500 euros in duties, taxes, and out-of-court settlements. Authorities continue to monitor the situation as part of broader efforts to combat fiscal evasion and the circulation of dangerous consumer goods.