European authorities investigate alleged steel import tax fraud in Germany

The European Public Prosecutor’s Office (EPPO) in Frankfurt am Main has launched an investigation into suspected tax evasion related to steel imports by a mechanical engineering company in Germany’s Rhine-Neckar region.

As part of the inquiry, the Stuttgart Customs Investigation Office carried out searches at the company’s premises, while simultaneous searches were conducted in the United Kingdom by His Majesty’s Revenue and Customs (HMRC).

According to investigators, the company allegedly misrepresented the origin of steel products in more than 100 customs declarations. The steel, which originated in India, was reportedly routed through the United Kingdom before being imported into Germany. Under EU customs regulations, proper classification of the steel’s origin would have resulted in a 25% higher import duty. Authorities estimate that the alleged misclassification led to a financial loss of several hundred thousand euros.

The transactions under scrutiny took place over a 12-month period beginning in March 2021, involving steel imports valued at over €2.9 million.

In December 2024, customs officials in Stuttgart searched the German company’s premises, while authorities in the UK conducted a parallel operation at the seller’s location. A significant amount of electronic data was seized and is currently being analyzed.

The investigation is ongoing, and no charges have been formally filed. Under legal provisions, the individuals and entities involved are presumed innocent until proven guilty in a court of law.

Source: EPPO, Photo: Fotolia