CHINESE CLOTHING AND FOOTWEAR EXPORTERS EXPLOIT EU IMPORT CONTROL WEAKNESSES TO EVADE TAX – SAYS WATCHDOG

THE EUROPEAN Union’s (EU) financial watchdog, the Court of Auditors, has highlighted concerns about how Chinese clothing and footwear exporters maybe exploiting loopholes in EU customs and VAT controls to evade paying proper amounts of these taxes. In a report on shortcomings in EU import procedures, the court noted how Chinese traders were abusing EU customs procedure CP42, which allows an importer to bring goods into one EU member state without paying VAT, because they will be sold in another EU country. That tax would be payable at this destination ...


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