EU warns UK again to recoup €2.7 billion China fraud bill

The UK has two months to act or the case could be referred to the EU's Court of Justice.

In December, The European Commission triggered the so-called Article 7 process against Warsaw | Emmanuel Dunand/AFP via Getty Images | Emmanuel Dunand/AFP via Getty Images

The European Commission today warned the U.K. for the second time to recover €2.7 billion in lost EU revenue stemming from the country’s failure to stop a massive fraud network that allowed cheap Chinese goods to flood into Europe.

The Commission’s warning is the next stage in the bloc’s formal infringement procedure and follows up on findings from the EU’s anti-fraud office OLAF that British customs played a central role by repeatedly ignoring warnings to take action over Chinese textiles and footwear entering the EU at a fraction of their cost of production.

“The United Kingdom now has two months to act; otherwise the Commission may refer the case to the Court of Justice of the EU,” the Commission said in a statement.

The potential bill against the U.K. was first reported by POLITICO and came to light after OLAF investigators focused their attention on the English ports of Felixstowe and Dover, the main entry points for Chinese textiles and footwear coming into Europe.

Tags: