Suspected aggravated tax fraud involving imports of cosmetics – joint investigation by Finnish Customs and the European Public Prosecutor's Office

Finnish Customs has investigated a case of aggravated tax fraud involving imports in cooperation with the European Public Prosecutor's Office. A Finnish company is suspected of having benefited by more than half a million euros by providing incorrect commodity codes when importing cosmetic products subject to additional customs duties from the United States to the European Union.

The European Commission has imposed an additional customs duty of 25 per cent on certain goods imported from the United States. Based on the preliminary investigation, a Finnish company is suspected of having deliberately declared cosmetic products using incorrect commodity codes. 

“We investigated the case as aggravated tax fraud, and since it involves avoidance of additional customs duties imposed by the EU Commission, we have conducted the preliminary investigation in cooperation with the European Public Prosecutor’s Office (EPPO),” says Hanna Koskenranta, investigator in charge of the case.

The European Public Prosecutor’s Office is responsible for investigating crimes against the financial interests of the EU, such as tax fraud involving customs duties, and for prosecuting and bringing to judgment the perpetrators of these offences in the EU member states. The present preliminary investigation concerns the avoidance of additional customs duties imposed by the European Commission, and the suspected damage has thus been directed at the funds of the European Union. That is why Ritva Sahavirta, European Delegated Prosecutor at the European Public Prosecutor’s Office, was the prosecutor in the preliminary investigation. 

A responsible person at the company is suspected of the offence. House searches and searches of premises have been conducted in Finland as part of the investigation. The investigation concerned the years 2018–2019. The company is deemed to have avoided additional customs duties for a value of more than 500 000 euros. In addition, the company was also ordered to pay a customs duty increase. The duties to be collected, including increases and interest, amount to more than 720 000 euros. The matter is to be submitted to the prosecutor for consideration of charges.