Amazon Raided in Italy Over Alleged Smuggling of Chinese Goods

Italian police conducted searches and seizures at two Amazon facilities in Italy on Monday, as part of an unfolding investigation into the alleged smuggling of Chinese goods. Dozens of officers from the Guardia di Finanza tax police and the customs agency reportedly seized approximately 5,000 products from a logistics hub operated by the e-commerce giant in Cividate al Piano, located in the northern province of Bergamo. Simultaneously, at Amazon's Italian headquarters in central Milan, authorities confiscated IT equipment and identified the Amazon manager responsible for the transportation of goods within Italy. Amazon in Italy was not immediately available for comment regarding the operations.

Prosecutors in Milan allege that Amazon functions as a "Trojan horse," facilitating the circulation of an undisclosed number of Chinese goods in Italy without proper taxation, according to a court document released on Monday. The items seized at the Bergamo center included a diverse range of products such as toys, mobile phone covers, air fryers, pens, and small scissors. The immediate impact of these two operations on Amazon's ongoing activities in Italy remains uncertain.

This smuggling probe represents a new line of inquiry that emerged from a broader investigation into an alleged 1.2 billion euro tax evasion case. The current case, spearheaded by Milan prosecutors in collaboration with the Monza branch of the Guardia di Finanza, focuses on alleged smuggling offenses involving dozens of Italian companies—many suspected of being fronts for Chinese entities—and the Amazon manager overseeing goods movement. Prosecutors suspect that goods are being illicitly brought from China into the European Union and subsequently into Italy through undisclosed channels, bypassing sales taxes and customs duties. These products are then allegedly moved and sold within Italy via Amazon's marketplace. Milan prosecutors are currently investigating both suspected smuggling and violations of the EU customs code.

It has also been noted that since last summer, two other ongoing operations have proceeded with Amazon's cooperation, primarily due to the inherent complexity of managing extensive goods flows within the e-commerce giant's logistics hubs. Sources with direct knowledge of the matter suggest that the total number of products involved in this smuggling investigation could reach half a million, with the probe anticipated to expand across the rest of the European Union. In July, Milan prosecutors were summoned to The Hague headquarters of Eurojust, the EU agency for criminal justice cooperation, where they presented the scope of their investigation to counterparts from several EU countries, including Germany, France, the Netherlands, Poland, Spain, Belgium, Sweden, and Ireland. While disputes over customs duties and sales taxes have escalated tensions with the United States over the past year, the potential implications of this China-related case in Washington and Brussels are yet to be determined.

The original 1.2 billion euro tax evasion case saw Milan prosecutors investigating three managers and Amazon's Luxembourg-based European unit for alleged tax fraud concerning online sales in Italy between 2019 and 2021. According to that probe, Amazon's algorithm purportedly enables the sale of goods from non-EU sources, predominantly Chinese, in Italy without disclosing the sellers' identities, thereby helping them circumvent Italian sales taxes. Under Italian law, an intermediary that offers goods for sale in Italy is held jointly liable for the non-payment of sales taxes by non-EU sellers utilizing its e-commerce platform. Amazon previously stated that it is "committed to complying with all applicable tax laws" in relation to that specific case.

Concerning the 1.2 billion euro tax evasion case, Italy's tax agency has put forth a settlement proposal to Amazon, which the US group must decide upon by December. Furthermore, Amazon's tax position has also attracted the attention of the European Public Prosecutor's Office (EPPO), which initiated its own probe into the company's accounts between 2021 and 2024, following the implementation of new EU rules imposing stricter VAT obligations on marketplaces.