European Prosecutor’s Office seizes 7.8 million metres of fabric in Prato

Brussels – Over 7.8 million metres of fabric and more than 237,000 items of clothing have been seized as a precautionary measure in Prato, on the orders of the judge responsible for preliminary investigations. The measure, requested by the European Public Prosecutor’s Office (EPPO) in Bologna, comes at the culmination of an investigation into a VAT and customs fraud operation linked to the smuggling of textile products from China. 

The goods had been found in January in four warehouses run by Chinese nationals in Prato. Furthermore, in November 2025, there had been a previous seizure of 2.3 million tonnes of fabric, bringing the total estimated value of the goods to around 11 million euros. 

The investigation concerns a smuggling scheme in which goods are imported from Chinese suppliers into warehouses in Italy, allegedly to evade payment of customs duties and VAT through the use of fictitious suppliers, buyers, and delivery addresses. EPPO said that according to the evidence, the scheme also relied on shell companies set up across Europe – mainly in Poland and Germany – to divert invoices and payment orders away from the actual Italian buyers. In this way, it appeared as though the goods had been purchased within the European Union, enabling the suspects to avoid paying customs duties and VAT on imports.

Based on the evidence, over the last three years, this scheme has enabled the suspects to evade import VAT and customs duties totalling more than 4 million euros. Following further investigations, the EPPO established the exact quantity and value of the seized goods. On this basis, the court ordered their preventive freezing, with a view to their possible confiscation and sale by public auction.