Gelatine Customs Fraud Probe
- Annkaren Wambui
- 2 days ago
- 6 min read
🔓 EPPO's "Operation Gummy Bear" investigation highlights why customs valuation and related-party pricing remain critical areas of customs compliance.
Summary: The European Public Prosecutor's Office (EPPO) is investigating an alleged customs fraud scheme involving gelatine raw materials imported from Brazil into Germany between affiliated companies. According to the investigation, the imports may have been deliberately undervalued by excluding additional debit notes from the customs value, resulting in an estimated €285,000 in unpaid customs duties between 2021 and 2023. The case highlights the importance of customs valuation, transfer pricing, related-party transactions and maintaining accurate customs declarations. |
Why This Investigation Matters
Customs valuation remains one of the most closely scrutinised areas of international trade compliance.
While businesses frequently focus on tariff classification, origin and customs declarations, regulators continue to place significant emphasis on whether imported goods have been declared at the correct customs value.
The EPPO investigation, code-named "Gummy Bear," demonstrates how related-party transactions can become the subject of customs investigations where authorities believe customs duties may have been underpaid.
According to the investigation, the case concerns the alleged undervaluation of collagen raw materials imported from Brazil into Germany for the manufacture of gelatine products supplied to the food, pharmaceutical and healthcare sectors.
Although the investigation remains ongoing and all parties are presumed innocent until proven guilty, the case provides an important reminder that customs valuation obligations continue long after commercial invoices have been issued.
Understanding the Investigation
The investigation centres on a German company located in Baden-Württemberg and its subsidiary in Brazil. The Brazilian subsidiary supplied collagen raw materials used to manufacture gelatine products distributed to manufacturers producing a wide range of consumer goods, including fruit jellies and gummy bears.
According to investigators, the subsidiary initially invoiced the German company at a lower price, which became the declared customs value when the goods entered the European Union. However, investigators allege that additional debit notes relating to the same imports were issued later during the year without being incorporated into the customs value declared to customs authorities.
If proven, this would mean customs duties were calculated using an incomplete customs value, resulting in lower duty payments than required under customs legislation.
Authorities estimate the alleged undervaluation resulted in customs duty losses of approximately €285,000 between 2021 and 2023.
Customs Valuation Is More Than the Invoice
Many businesses assume the commercial invoice alone determines the customs value of imported goods. However, customs valuation rules require importers to declare the full customs value in accordance with applicable customs legislation.
Where additional payments, adjustments or financial arrangements affect the price actually paid or payable, businesses should carefully assess whether those amounts must also be included in the declared customs value.
This becomes particularly important where transactions occur between related or affiliated companies, as customs authorities may review whether declared values accurately reflect the transaction. Failure to correctly determine customs value can result in additional customs duties, financial penalties, post-clearance audits and regulatory investigations.
International Cooperation Across Three Countries
The investigation also demonstrates the increasingly international nature of customs enforcement. Authorities from Germany, Belgium and Brazil coordinated simultaneous searches as part of the investigation.
Brazilian authorities, including the Federal Revenue Service (Receita Federal), the Federal Police (Polícia Federal) and the Federal Public Prosecutor's Office (Ministério Público Federal) supported investigative activities carried out at the Brazilian subsidiary.
Meanwhile, German customs investigators searched the premises of the main company, a customs representative, a logistics centre and private residences linked to the investigation.
Belgian Federal Judicial Police officers also participated in searches within Belgium.
Electronic evidence, business records and communication devices were seized as investigators continue examining the alleged customs fraud scheme.
What Should Businesses Do Now?
Although the EPPO investigation is ongoing, it provides valuable compliance lessons for businesses involved in international trade, particularly those importing goods from related or affiliated companies.
Businesses should consider reviewing their customs valuation procedures by:
Reviewing customs valuation methodologies for all imported goods.
Assessing related-party pricing arrangements to ensure customs values reflect applicable customs legislation.
Verifying whether post-import price adjustments, debit notes or additional payments should be included in the declared customs value.
Reviewing customs declarations submitted by customs representatives or brokers.
Strengthening internal customs valuation procedures and documentation.
Maintaining comprehensive records supporting customs values.
Conducting periodic customs valuation reviews and internal compliance audits.
Ensuring customs, finance and procurement teams work together when pricing adjustments occur.
Taking these proactive steps can help reduce customs risks while strengthening customs governance and audit readiness.
Related-Party Transactions Require Particular Attention
Transactions between affiliated companies are not unusual in international trade.
However, customs authorities frequently examine these transactions to determine whether the declared customs value accurately reflects the price payable for imported goods.
Businesses operating within multinational groups should therefore ensure that transfer pricing arrangements, commercial invoices, post-import financial adjustments and customs declarations are aligned with applicable customs legislation.
Where uncertainty exists, seeking professional customs advice before goods are imported can help reduce future compliance risks.
Electronic Evidence Plays an Increasing Role
The investigation also demonstrates how customs authorities increasingly rely on electronic evidence during customs investigations.
Digital customs declarations, commercial invoices, financial records, emails, accounting systems and mobile devices can all form part of customs investigations where authorities seek to establish whether customs obligations have been met.
Maintaining organised records and ensuring documentation remains readily available is therefore becoming an increasingly important aspect of customs compliance.
Looking Ahead
The EPPO's "Operation Gummy Bear" investigation serves as a timely reminder that customs valuation remains one of the most significant compliance obligations for importers engaged in international trade.
As customs authorities continue strengthening cooperation across borders and increasing their focus on customs fraud, related-party transactions and customs valuation, businesses should ensure their customs procedures remain accurate, transparent and fully documented.
Organisations that invest in robust customs governance, effective record-keeping and regular customs valuation reviews will be better positioned to manage customs risks, prepare for post-clearance audits and demonstrate compliance with customs legislation.
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Author
Ann Karen | Head of Growth
Updated: August 2026
Related Topics
#CustomsCompliance #CustomsValuation #InternationalTrade #TradeCompliance #ImportCompliance #ImportExport #GlobalTrade #SupplyChain #SupplyChainManagement #TransferPricing #RelatedPartyTransactions #CustomsAudit #PostClearanceAudit #CustomsDeclaration #TradeRisk #Logistics #CustomsInvestigation #TradeIntelligence #EUCustoms #CustomsManager
Disclaimer
This article is provided for general informational purposes only and does not constitute legal, customs or tax advice. Businesses should seek professional advice based on their individual trading arrangements and compliance obligations.
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