The author doesn't eat maltose

Edited by Shadow

Greece¡¯s ¡°Operation Calypso¡± is on the rise.

Just as the aftermath of the Chinese leader "Kelly" smuggling case was still unresolved, the European Prosecutor's Office (EPPO) announced on September 15 that, In 1945, containers from China were seized at the Port of Piraeus.

This is not an isolated incident, but a continuation of the June raids. The EPPO seized 500 containers in the same port, seized goods such as electric bicycles, textiles, footwear, and arrested 10 people involved in the case from four countries, including two customs officials.

The 1945 containers seized in September, up from the previous 500 to a total of 2,435 containers, Set a record for the largest container seizure in the history of the EU. The preliminary estimate of the value of the goods exceeds 250 million euros, while the potential loss of customs duties and value-added tax may be as high as 700 million euros.

This series of actions means: The EU's gray operation on the Central European trade chain has opened the "zero tolerance" model, compliance is no longer an option, but a hard threshold.¡£

Chinese goods are being looked at: early warning in cross-border circles

In fact, the big case did not happen suddenly.In the first half of this year, the port operations became abnormal, and the seller and freight circle had felt the sickness.

Cross-border expedition observed that before there were sellers reflecting the goods sent to the warehouse on April 25th, on May 5th, the ship was only launched, the 13th of June was in line after the port, and for a month still not released.

Some shippers even suggested that shipowners consider changing ports to avoid delays and potential risks.It can be seen that there were early signs of abnormal port operation, but not enough attention at the time.

A few months later, the seller was still reluctant to ask for help: "The goods arrived in the port of Greece for more than three months, and there was no clearance, today the goods suddenly said to add money!"

At the operational level, there has been a long-standing practice of gray operation in the freight forwarding circle: customers sometimes ask to "quote a little lower" or "classify to save tax/VAT", such as writing shoes as electronic accessories, or disassembling batteries of electric bicycles and counting them as parts to reduce taxes and fees.

Some sellers are also accustomed to choosing the DDP/double-cash tax model, thinking that all risks are borne by the goods, but in reality this model cannot completely circumvent legal and tax risks in the grey operating environment.

In the past, the scattered and uncentralized operation of such low-value, false declarations was difficult to capture, and this Calypso operation would fully expose long-term, large-scale and systematic violations to the public.

The Kelly incident mentioned earlier shows that, Once the gray operation is systematized, it is possible to form a complete transnational criminal network.The Independent Procuratorate of the European Union pointed out that the Chinese team, together with some Greek customs officials, customs brokers and accounting firms, covers the entire logistics and distribution chain from procurement, logistics, customs clearance to operation, distribution and terminal sales.

They first registered companies in Bulgaria, then robbed the Greek VAT number, systematically imported e-Bike electric bicycles, pedestrian and other products from China, through low news, fake news, hidden news and so on, which is what the industry calls "shopping".

Subsequently, the goods were sold to companies established in other Member States, allowing them to benefit from the Customs Procedure 42 (CP42) zero value-added tax clearance, with a fraud cumulative amount of €2.5 billion throughout the chain. The Greek Ministry of Internal Affairs also seized €4.5 million in cash when it searched the Customs Office in Pireus, where the criminal network had penetrated the customs.

These early signals have been discussed in the service and freight circles, and many people have felt ¡°no problem with me¡± or ¡°small, a little bit down¡± but now it seems that these seemingly harmless gray operations have become mining zones in cross-border logistics. Any connection is careless and may also be involved.

Why are the thunderstorms at stake?European logistics and regulatory hazards

Operation Calypso seized thousands of containers, which seemed sudden, but actually exposed systemic risks accumulated over a long time. Previously, the abnormal operation of the port, the gray operation of the freight forwarding circle, and the misjudgment of the DDP/double clearing mode all laid the groundwork for this incident.

Reducing costs has been a common consideration for sellers and service providers, and customs duties and VAT (VAT) on EU imported goods typically account for 15% to 30% of the total cost, plus anti-dumping or anti-subsidy taxes, and the total tax burden may be up to 20% to 30% at the same time, customs clearance costs, document requirements, inspections and safety certifications (such as battery transport safety, motor performance testing) are also on the rise.

Under such cost pressures, some service providers may save thousands to tens of thousands of euros in the short-term by choosing low returns, low tax rates, disassembly of goods, or even removing batteries from customs clearance, but if calculated on the basis of full tariffs and VAT, the potential tax losses, for example the goods captured by this Calypso operation, will amount to approximately EUR 250 million in customs duties and EUR 4,5 million in value added tax, which could total up to EUR 700 million.

In addition, past scattered, decentralized operations are not easy to capture, but as regulations escalate, these grey operations are exposing systemic hazards.

In recent years, the EU has stepped up its efforts to combat customs fraud and VAT fraud, and the OLAF, EPPO and the customs and tax departments of the Member States¡¯ data sharing and digital auditing capabilities have continued to be enhanced.In the past, the mode of relying on "good luck" to get through customs is hardly effective now. Large ports, such as Piraeus Port, are likely to lead to systematic violations once large-scale spot checks or investigations are launched due to their large cargo flow and complicated document review.

At the same time, the complexity of cross-border chains itself increases the risks.From China's shipments, freight forwarding operations, customs clearance and sea transportation in exporting countries, to customs clearance, distribution, online platforms and terminal retail in importing countries, there may be irregular operations in every link. Customs declaration agents, distribution warehousing, logistics service providers and even intermediate leather bag companies must provide complete capital flow, contracts, transportation records, invoices and product test reports once investigated, if the declaration is false or the classification is wrong, which is extremely difficult to operate.

Furthermore, the geographical and managerial characteristics of the port are also hidden in danger. Pireus Port is an important node for Chinese goods entering the EU, some of the ports are held by COSCO, but the management structure is complex, and regulatory loosening is easy to form a gray channel. In addition to freight, customs agent and individual customs officials, there may be room for collaboration, as well as cross-border distribution and multi-channel retail, which complicates the entire chain and once inspected, chain risks are enormous.

Cross-border logistics, compliance is the hard currency

Calypso¡¯s action once again reminds cross-border sellers that so-called ¡°money saving shortcuts¡± often hide huge risks.Freight fluctuations, port delays, DDP/double clearing tax package models, and gray operations such as underreported goods values or classified low tax rates seem to save costs in the short term, but once investigated, the losses far exceed expectations. This not only includes the recovery of customs duties and value-added tax, but can also involve hefty fines, seizure of goods, and even damage to the credibility of the business. Short-term "dividends" are exchanged for long-term unbearable legal and financial risks.

At the same time, domestic policies have been further tightened. On July 7, the State Administration of Taxation issued Announcement No. 17 of 2025, The revision of the enterprise income tax pre-payment tax declaration, in which Article 7 has a significant impact on export business, the "payment order export" model may end.

This clause will come into effect on October 1, 2025 and clearly stipulates:

• Enterprises that export goods by agency (including market procurement trade, comprehensive foreign trade services, etc.), The basic information of the actual commissioned exporter and the export amount must be submitted simultaneously at the time of the pre-payment declaration.£»

• If it is not submitted accurately, it will be handled by self-operation, and the customs declaration agency enterprise shall bear the enterprise income tax that should be declared for the corresponding export amount;

• The actual commissioned exporter refers to the actual production or sales unit of the goods.

This means that the subject of "payment and export", whether it is a customs agency enterprise or the actual entrusted exporter, must bear the responsibility for the enterprise income tax declaration. Previously, some enterprises to facilitate or reduce the cost, through the customs clearance of other people's export certificates to "pay and export", is a non-compliance, in the future will face strict regulation.

In addition, in the complex international supply chain, every link can become a risk point. Compliance verification before shipment, legal operation on the way of transportation, authentic declaration of import clearance, transparent accounting of the distribution link, every step must be careful.The freight forwarder or customs clearance company alone can't completely avoid the responsibility by promising "all-inclusive tax".

So, how can cross-border sellers reduce or even avoid such risks? The core lies in actively controlling information and resources:

• Select qualified partners with a proven compliance track record;

• Establish internal control and audit mechanism to regularly check invoices, contracts, logistics records and product certification;

• Pay attention to changes in policies and regulations to ensure that every step of the operation is legally compliant;

• Reasonably plan logistics routes and distribution networks, reduce unnecessary intermediate links, and control risks from the source.

In summary, the greatest revelation of the Calypso event is: There are no real shortcuts in cross-border business.Any operation that touches the red line of compliance can risk millions if not tens of millions of euros. Only comprehensive compliance, proactive management and transparent operation can truly make the business run steadily, not only avoid legal and tax risks, but also lay a solid foundation for the long-term development of the enterprise.

References:

China has seized 1935 containers in Greece, the amount involved in the case exceeds 700 million euros!

[2] Exploded! Greece once again seized more than 1,900 containers, all from China!. Big freight forwarder