Amazon’s European unit and two senior managers could face trial in Italy over more than 1.5 million Chinese products sold without proper payment of import value added tax and customs duties.
Milan prosecutors concluded their investigation following police raids conducted in November last year on Amazon’s Italian headquarters in Milan and a logistics hub near Bergamo. Formal legal notices under Italy’s corporate liability framework were served on Luxembourg-based Amazon EU and the two executives, a step that typically precedes a formal request for trial.
Authorities put the unpaid import VAT at more than €3.52m ($3.9m), while customs officials continue to calculate the total evaded duties. A total of 70 suspects received the notice, including online store operators accused of moving non-EU merchandise through Amazon’s domestic logistics network while evading border declarations.
Automated Systems and Missing Seller Data
Prosecutors allege Amazon failed to implement organisational measures capable of preventing customs offences and allowed non-EU goods to circulate through its logistics network despite alleged customs compliance irregularities.
They also allege Amazon knew, or should reasonably have known, that around 80% of goods handled through its Italian logistics system came from China, yet did not adequately check sellers, customs documentation or warehouse movements.
The legal notice claims Amazon knew or should have known about the supply chain flaws. By leaving those gaps open, prosecutors argue, the marketplace functioned as an entry pipeline that allowed Asian goods to sidestep European borders without fiscal checks.
Shifting Pressures on Cross-Border Chinese Merchants
For manufacturers and direct-to-consumer exporters, the Milan inquiry shows that relying on Western e-commerce platforms no longer shields sellers from local fiscal enforcement. European tax authorities have moved past sending notices to remote offshore store entities, targeting the physical warehouses where goods actually sit.
Direct-selling Asian brands operating on thin operating margins face immediate exposure. If marketplaces demand validated tax identification numbers and upfront proof of cleared duties before receiving stock, merchant inventory turnaround times will slow down and operating fees will climb.
Amazon told the publication that it was “committed to complying with all applicable laws and regulations in every country where we operate and we require all sellers on our marketplace to do the same”.
“We will vigorously defend our position in this ungrounded proceeding,” the US company said.
It also said “unpredictable regulatory environments, disproportionate penalties, and protracted legal proceedings are increasingly affecting Italy’s attractiveness as an investment destination”.
Raids and Cross-Border European Probes
The formal notice follows police raids carried out in November last year across Amazon’s corporate headquarters in Milan and a regional fulfilment depot near Bergamo. Those operations initiated an inquiry into Asian import evasion that quickly expanded beyond Italian borders.
Milan prosecutors later briefed judicial counterparts across multiple European jurisdictions through Eurojust to examine similar logistics networks across the continent. Investigators described the distribution mechanism as a setup that let offshore merchants bypass standard import filings on an industrial scale.
Under Italian law, recipients can submit arguments, documents and evidence before prosecutors decide whether to seek a trial. Italian customs authorities are working to complete their calculation of unpaid duties, which will determine the final financial penalty sought in court.
