Operation Calypso uncovered an organised network importing Chinese electric bicycles with false tariffs to the port of Piraeus in Greece. The European Public Prosecutor’s Office, with the support of the Greek authorities and the agency, uncovered one of the most serious customs fraud schemes involving electric bicycles in the history of the European Union. As part of Operation Calypso, 2,435 containers worth €250 million were seized at the port of Piraeus, many of which were loaded with electric bicycles illegally imported from China.
Of these containers, more than 500 were filled with electric bicycles and 360 were not even declared at customs. In many cases, the fraud consisted of declaring only 10% to 15% of the total units in order to avoid anti-dumping duties levied on electric bicycles from Asia.
An avalanche that harms European electric bicycles
Official figures point to a concrete loss to the EU budget in the case of electric bicycles amounting to €37.5 million, including €25 million in unpaid customs duties and €12.5 million in VAT evasion. However, according to investigators’ estimates, the total amount of fraud, including customs duties and VAT, exceeds €800 million across the entire scheme.
The criminal structure operates on several levels. First, customs declarations were falsified or understated, allowing large volumes to be imported with minimal tax liability. The goods were then transported between EU countries under intra-Community arrangements (VAT-exempt at the point of import), although in many cases these transports were fictitious or non-existent. Finally, the electric bicycles were secretly distributed on local markets, often without invoices, with cash payments and using logistics networks that laundered the profits and sent the capital back to China.
Charges have already been brought against six people, including two customs officials and four customs brokers, accused of document forgery, customs fraud and tax evasion. In several cases, these agents allegedly facilitated the forgery of documents and allowed the illegal transport of goods. Operation Calypso uncovered a network that had been operating for at least eight years, mainly under the control of Chinese nationals, who managed the entire process: import, distribution, sale and return of profits. This criminal infrastructure violated the principles of fair competition in the European electric bicycle market.
The impact on the European sector was enormous. By allowing artificially low-priced products to enter the market, legitimate manufacturers, who were obliged to pay customs duties, VAT and comply with standards, ended up being excluded. The European sector was already resisting the pressure of the ‘Chinese tsunami’, relying on anti-dumping duties; Operation Calypso shows that these barriers can be systematically violated.
Portugal was not immune to this impact. However, no detailed data on Portugal is presented. Part of the volume seized was destined for the Spanish market or had a logistical link with it, given the interconnection of intra-Community transport. For Spanish companies operating legally, whether manufacturers, distributors or importers, the consequences are twofold: loss of competitiveness due to inflated prices resulting from fraud, and acceptance of stricter customs controls, demanding traceability and the risk of inspections, which make operations more expensive.
The legal sales channel is also threatened: when consumers realise that informal markets or shops offer electric bicycles at unjustifiably low prices, confidence in distributors who comply with guarantees, certification and tax liability is shaken. Operation Calypso is not just a judicial blow: it is a warning to the electric vehicle market. In a context where eco-friendly transport and electric bicycles are set to grow, it is extremely important that this growth takes place in accordance with fair, sustainable and competitive standards.
