OLAF and the fight against customs fraud: The illicit traffic of cigarettes and counterfeit goods For any further detailed press questions: OLAF-media@ec.europa.eu

OLAF: mission, mandate and competences OLAF mission and mandate: detect, investigate and stop fraud affecting EU funds independent investigations into: fraud, corruption and other offences affecting the EU financial interests Customs duties are an important part of EU revenue Investigates and coordinates under administrative law: uses a range of legal bases (Reg. 883/2013, R.515/97, EU Customs law, Customs Mutual Administrative Assistance Agreements with third countries) Issues recommendations to national administrations, judiciaries and EU disciplinary authorities Assists Member States' administrations (customs, police, judiciary,…) 2

Specialised Unit works on the fight against cigarettes & counterfeit goods 14 staff (Liaison officers in Kiev, Beijing and Dubai) Many ongoing cases: Unit carries out or coordinates investigations in all 28 MS and outside EU; OLAF investigation reports are admissible as evidence in MS court proceedings, often lead to convictions of criminal networks Unit provides expertise, technical/logistical assistance, training/ communication materials, or any other operational support to the Member States (e.g. Anti-Fraud Information System, Joint Customs Operations, Equipment, etc.)

OLAF INVESTIGATIONS: Car spare parts Coffee Ball bearings Medicines Semi-conductors Parfumes Shampoo Pesticides

Counterfeit cigarettes from China and counterfeit perfumes from Turkey Case study Counterfeit cigarettes from China and counterfeit perfumes from Turkey

Investigations in Belgium Customs case references: CANCELLARA MIEP GRAMOS MOBILAS Police case references: ORTES (2011-2013) SIGA (2013 – now)

Start of the enquiries in November 2011 OLAF ref. OF/2011/1236 OLAF received information about a suspect container arriving in the Port of Zeebrugge (Belgium) from China OLAF informed the Belgian Customs Customs identified two more identical consignments, declared as porcelain, on board of the same vessel Controlled deliveries of the three containers from Zeebrugge to a warehouse near Antwerp

Key results to date Seizure of the 3 containers with 30,000,000 counterfeit cigarettes; In the warehouse another 40,000,000 counterfeit cigarettes were discovered and 6 persons arrested; Seizure of 70,000€ in cash, 1 car and a lorry The same organisation was involved in the illegal importation of significant amounts of counterfeit perfumes from/or via Turkey, hidden in containers declared to contain water Several containers with counterfeit cigarettes, similar to the ones that were seized, were on their way from China and could not be stopped anymore and therefore another 70,000,000 cigarettes could be seized Other illegal warehouses were detected, where cigarettes and perfumes were found. More than 100 previous similar consignments were identified over several years

Second leg of the case (OLAF ref. 2013/1320/B2) Request for assistance from Anti-Smuggling Bureau (ASB) in China to OLAF. ASB identified suspicious cigarette consignments destined for several EU countries Some of the Belgian seizures from the initial case could be linked to this Chinese information In November 2014 OLAF organised a mission to Beijing with Belgian investigators from Customs and the Federal Police and two investigative judges to discuss the case with representatives of ASB and the Chinese Ministry of Justice.

Current situation The Belgian investigation (customs, federal police and prosecutors) and Chinese investigation (ASB and MPS-Ministry of Public Security) led to the identification and arrests of suspects involved in China in the production and the distribution of counterfeit cigarettes Several Turkish suspects and one Chinese person were arrested in Belgium The case is still on-going and Mutual Legal Requests between the Belgian, Chinese and Hong Kong Judicial Authorities are in progress.