Illegal Imports of Agricultural Goods: Fraud & Prevention

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Illegal Imports of Agricultural Goods Fraud
Prevention
Dr. Elisabeth SPERBER European Anti-Fraud Office
(OLAF) Head of Unit - Agriculture Brussels
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What is OLAF?
OLAFs mission is to fight fraud, corruption
(within the European Institutions) and any other
irregular activity detrimental to the
Communities financial interests (which covers
revenues and expenditures) /- 430 staff
(investigators with various profiles,
intelligence experts, IT-specialists, auditors,
lawyers, public prosecutors,..)
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OLAF Unit B.1- Agriculture
Working area The Common Agriculture
Policy - Fraud and irregularities related to
import and/or export of agricultural products
from and to third countries - Fraud concerning
intra-Community measures (agricultural aid in
all kind of forms)
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Communication with our main partners Customs
Authorities Agriculture Authorities
Veterinary Authorities Paying Agencies
Judicial Authorities
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Case example Illegal entry of Indian buffalo
meat into the E.U.
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September 2004 Arrival in the port of Hamburg
of 40 containers of frozen buffalo meat with
final destination the Russian Federation

• First stage Fake Australian/New-Zealand
  certificates
• Lateron Presentation of Indian sanitary
  certificates

At the end of 2004 Finally 115 container loads
seized and destroyed in Hamburg In addition
containers in other ports (Tallinn, Klaipeida,
Gdynia,) covered by fake certificates with other
origin Cargo destroyed in Poland, Estonia,
Lithuania etc.
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Rejection and sending back the container loads
did not really help
Containers refused in Gdynia were shipped back
to India. The containers arrived in India
however empty! The cargo had been
unloaded in Dubai (UAE)
Other containers were sent back from Gdynia
to India. One day later they showed up
in Thessaloniki and were presented at
the BIP with fake Canadian certificates.
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Letter heading
1. Hamburg type
2. Klaipeda type
3. Gdynia type
4. Tallinn type
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1. Hamburg type
2. Klaipeda type
3. Gdynia type
4. Tallinn type
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1. Hamburg type
2. Klaipeda type
3. Gdynia type
4. Tallinn type
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Case example
Illegal imports of poultry meat from China via
Hamburg
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Import prohibition for poultry meat originating
in China in force since 01.08.1996
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On 27.01.2004 in the port of Hamburg..
German customs start with the physical check of a
reefer container coming from China
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A scan is taken from the containers and the
results show differences in temperatures
indicating different types of products loaded
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Close to the doors the customs find cartons with
spring rolls
and some other vegetable products
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poultry meat packed in cartons mentioning a Thai
poultry producer
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Case example
Illegal imports of poultry meat from China via
Koper
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Port of Koper
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Case 1 two poultry meat containers

• Frozen poultry meat hidden in containers declared
  as frozen taro (Chinese potatoes)
• Place of origin Qingdao, China
• Place of destination Budapest, Hungary
• 3060 cartons 51.102 kg

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On the Bill of Lading
Shipper in China
Name Address of Hungarian Consignee
Name Address of Notify Party in Hungary
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• Findings after physical check of the containers
• ? Frozen chicken breasts in cartons of a
  Brazilian company with Brazilian health mark

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Official information

• Communication of findings on 25 April 2005 to
• DG Sanco
• CVO Hungary
• OLAF (on 10 May 2005)

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Case 2 two duck meat containers

• Declared as frozen taro
• Place of origin Yantai, China
• Place of destination Budapest, Hungary
• Interesting link between poultry and duck
  shipments
• BOTH shipments destined to one and the same
  Hungarian consignee !!

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Example of container routing
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Name Address of Chinese shipper
Name Address of Hungarian Consignee
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• Findings after physical check of the 2 duck meat
  containers
• Frozen duck meat in cartons with no label
• Packages of French slaughterhouse with health mark

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Official information

• Communication of findings on 25 April 2005 to
• DG Sanco
• CVO Hungary
• OLAF (on 10 May 2005)

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What can I find on a cargo manifest???
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What the scanner can NOT detect!!!
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By declaring vegetable products instead of
poultry meat
Veterinary controls were avoided (veterinary
inspection for all products of animal origin)
Potential risk for public/animal health ! !
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Lesson learnt

• A good co-operation between customs and
  veterinary services at the border is essential to
  prevent illegal introduction of goods possibly
  dangerous for public and/or animal health

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Thank you for your attention !