An end to fuel smuggling with a series of tough measures by the government

Taming the smuggling of liquid fuels has been reduced to a personal bet for the government, as it has recently reached uncontrollable proportions, while the cases of speculation have exceeded all previous ones.

Repeated meetings and proposals, as well as measures such as the sealing of those who falsify fuel, fines of 250,000 euros on logistics means that “close” the GPS, have already been implemented, while in the near future another set of measures is coming to the Parliament in the same direction. In particular, the equalization of the VAT rates of industrial LPG with LPG for other uses, the mandatory use of electronic means of payment for all transactions of goods subject to VAT and the notification of receipt from other member states or within the country of solvents and other products are promoted new type used in fuel adulteration.

The measures, however, will also have continuity and will be implemented gradually, as time is required for their implementation, while they are financed by the Recovery Fund.

The plan envisages the development of a new electronic system that will monitor customs transactions in real time, record the movement of trucks and containers, monitor commercial vehicles and containers entering Greek territory, while expanding the input-output system throughout the fuel supply chain. The main objectives of the project are:

– Limiting the loss of revenue by intensifying and strengthening the fight against smuggling.

– Protection of society from the use of illegal, adulterated, fake, dangerous and environmentally harmful products.

– Increased collection of the EU’s traditional own resources.

– Ensuring fair competition in the market and consumer protection.

– Dealing with cross-border crime, and in particular economic crime, mainly by combating the smuggling of products.

– Support the increased need to control vehicle entry and exit points.

In particular, the action plan to combat smuggling, especially for products subject to excise duty and VAT, is based on six axes:

1. Modernization of existing risk analysis methods with targeted control and prosecution tools and in continuous use by the Customs Service. AADE’s operational information systems Icisnet and Elenxis must be redesigned with the aim of effectively prioritizing non-compliance risks and creating the best possible control profiles, using information from the European Union and national databases. European and international bodies are involved in the fight against smuggling and it is important to work with as many public services as possible to help in this endeavour.

2. Installation of a new integrated system that will support the control process by monitoring customs transactions and procedures in real time. This system will operate with the aim of better and faster targeting of the prosecuting customs services with centralized supervision and at the points of high interest, such as: a) entry-exit points from the customs territory of the EU, b) locations at regional level.

3. Electronic monitoring of the movement of products, which will focus on the movement of commercial vehicles and containers in the Greek territory. Upon their entry and circulation in the country, the use of the Alcoholic Beverages Registry and the Alcoholic Beverages Identification System by the customs control authorities will be implemented.

4. Completing the input-output system for the entire fuel supply chain, which will strengthen the custom control process and lead to the development of a holistic system for monitoring the movement of commercial fuel transport vehicles. The system will be able to track the cargo from its entry and the customs procedure applied for its free circulation or exit from the customs territory of the Union.

At the same time, and based on the planning of the Ministry of Finance and the involved services, the operational action for the prosecution of smuggling is based on two axes: firstly, the prosecution of criminal organizations and, secondly, the control of delinquency and the increase of compliance. Specifically:

Prosecution of criminal organizations

During the period from 1/1/2021 to 30/4/2022, the prosecuting authorities (AADE, SDOE, ELAS) carried out 22 arrests, confiscated 276,758 liters of liquid fuel, 4,200,000 kg of LPG and 10 tanker trucks and disabled 79 VAT number of non-existent or inactive chemical solvent trading companies. Seizures, by all prosecuting authorities, of liquid fuels, from 67,795 liters in 2019 and 92,927 liters in 2020, amounted to 198,669 liters in 2021 and 78,089 liters already in the first quarter of 2022.

It is noted that by an act of the Council of Ministers, the “Government Committee for Strategic Planning and Operational Supervision for the Limitation of Smuggling in products subject to Excise Duty (Excise Tax) and Consumption Tax” was established, with the task of drawing up the national strategy and defining the individual objectives to limit the smuggling of all excise goods (fuel, alcohol, tobacco) and monitor their implementation, the operational supervision of law enforcement authorities and the monitoring of the implementation of the fuel input-output system.

It is noted that the automatic identification system (AIS), in which a positioning receiver (Global Positioning System – GPS) is integrated/connected, provides continuous data (spots) on the geographical location of the vessel and data identification thereof, in accordance with the performance standards of the International Maritime Organization (IMO). The system has been put in place and, in the event that the devices are closed, stiff fines of up to 250,000 euros will be imposed.