How Chinese Sellers Smuggle E‑Scooters and E‑Bikes into the EU

European authorities are cracking down on a wave of imported electric bikes and scooters from China that evade import duties, taxes, and safety regulations. Chinese sellers have deployed a variety of smuggling tactics – from falsifying customs paperwork to exploiting VAT loopholes – to avoid steep tariffs. For context, the EU has imposed high trade defenses on Chinese e-bikes (anti-dumping and anti-subsidy duties totaling up to ~87% of their value) to protect European manufacturers. (Electric scooters have not faced similar anti-dumping duties.) By dodging these fees, fraudulent importers can undercut legitimate businesses with artificially low prices. This article investigates how these schemes work, highlights major enforcement cases across Europe, and explains the risks for consumers – concluding with tips on how to avoid scams and buy e-mobility products safely.

Tactics for Evading Import Duties and Taxes

Smugglers use sophisticated methods to slip e-bikes and e-scooters past EU customs without paying the required anti-dumping duties, VAT, or tariffs. Some of the most common tactics include false declarations of goods, abuse of special customs procedures, fraudulent VAT schemes, and concealing the true origin of products. Often, these tricks are combined to create complex fraud networks. Below we break down the key methods being used.

False Declarations and Undervaluation

One basic ploy is misdeclaring the shipment’s contents or value on import paperwork. Fraudulent importers may label electric bikes as different products that carry no import duties, or drastically understate the value to reduce the taxable amount. In a recent EU bust, investigators uncovered 380 falsified import declarations where e-bikes were undervalued and their country of origin misrepresented. By declaring a lower price or a false product category, the perpetrators evaded a significant share of the import and anti-dumping duties that would normally apply. In another scheme, fake documentation passed off Chinese e-bikes as “spare parts” or other items not subject to the 87% anti-dumping tariff. These false declarations allow containers of e-bikes to slip through customs appearing harmless or low-value, escaping the proper duties.

Abusing Customs Transit Rules (Procedure 42)

Many fraudsters exploit EU customs regimes meant for legitimate trade facilitation. A prime example is the abuse of transit procedures and Customs Procedure 42. Under Procedure 42, goods entering the EU destined for another member state can be imported VAT-free in the entry country (VAT is supposed to be paid in the destination country). Likewise, the transit procedure suspends duties and VAT while goods move through the EU to a final clearance point. Smugglers have leveraged these rules by declaring China-made e-bikes in transit to a non-EU destination or another EU country – thus initially avoiding VAT or duties – but then diverting the shipments to local warehouses without ever paying the taxes. In a Polish case, containers of e-bikes were declared “in transit” through the EU but secretly offloaded in Poland, never reaching the supposed destination. Some schemes even filed fabricated claims that the goods had left the EU, when in fact they were sold domestically. By the time tax authorities realize the goods never truly exited transit, the bikes have been sold to consumers and the importers have vanished.

‘Missing Trader’ VAT Fraud

Another layer of the scheme involves complex VAT evasion known as “missing trader” fraud. In these cases, the perpetrators set up a front company in an EU country to act as the importer or seller of the e-bikes. The company (often just a shell) sells the imported bikes to consumers and charges them VAT, but then the company disappears without remitting the VAT to the government. As the European Anti-Fraud Office (OLAF) explains, the trader goes “missing” after collecting the VAT, leaving tax authorities empty-handed. This tactic was observed in the Polish investigation where shell firms were used to avoid paying millions in VAT on e-bike sales. It’s often used in conjunction with customs tricks – for example, a fraudster might import e-bikes under Procedure 42 (deferring VAT at entry), then sell them via a domestic shell company that eventually vanishes. The result is not only customs duties evasion but also unpaid VAT along the supply chain.

Concealing Origin with Assembly in Europe

To dodge anti-dumping tariffs specifically, some importers conceal the Chinese origin of e-bikes by shipping them in pieces or routing them through third countries. One major investigation (codenamed “Pedelecs”) found that since 2020 a Portuguese company had been importing disassembled electric bicycles from China and reassembling them locally. By importing the bikes as separate parts (frames, motors, batteries shipped separately), they aimed to circumvent the high duties on complete e-bikes. The consignments were deliberately misdeclared to customs as if they were just bicycle components. Similarly, in France, authorities uncovered a scheme where a group of Chinese companies presented fully built e-bikes as “spare parts” on import documents, masking their true origin. By artificially altering the product’s declared form or origin, these importers attempted to exploit loopholes in EU trade measures enacted in 2018 against Chinese e-bikes. In Italy, an investigation revealed a company evaded nearly €10 million in duties by importing complete e-bikes in unassembled form through multiple small shipments since 2019. All these cases follow the same pattern: break down or re-label the product to avoid the “Made in China” e-bike tariff, then quietly flood the EU market with reassembled bikes.

Using EU Shell Companies and Warehouses

Chinese sellers also exploit corporate structures in the EU to make smuggling operations harder to detect. By registering shell companies or partner firms in countries like France, the Netherlands, or Poland, they create a local “face” for the business while the real operations remain in China. For example, in 2023 the EU’s Public Prosecutor (EPPO) in Paris arrested the manager of a Chinese e-bike import group based in France for a €26 million fraud. The group’s scheme involved bringing e-bikes into Europe via these French entities while concealing the bikes’ Chinese origin and avoiding duties. Having a company or warehouse on EU soil also enables sellers to stockpile products locally. In the Polish case, thousands of e-bikes were stored in Polish e-commerce warehouses and sold online by non-European traders, giving buyers the impression of an EU-based sale. In reality, those bikes had slipped in without proper import fees. Likewise, OLAF found that once illicit shipments were inside the EU, they were delivered to fulfillment warehouses and sold to consumers with no VAT added, undercutting honest competitors. An EU shell company can abuse VAT rules (as discussed above) and then vanish, making enforcement difficult. These setups also let sellers advertise “EU shipping” – deceiving consumers into thinking the product is already customs-cleared, when in fact the import may have been fraudulent.

Enforcement Crackdowns: Major Cases in Europe

Customs and fraud enforcement agencies across the EU have been actively pursuing these illicit import schemes. Joint operations led by OLAF (European Anti-Fraud Office) and the European Public Prosecutor’s Office (EPPO), in cooperation with national customs, have yielded significant seizures of e-bikes and related arrests. The table below highlights several high-profile cases uncovered in the last few years, showing the scale of the problem and the authorities’ response:

*Polish Customs officers inspect a warehouse of seized electric bikes during a joint OLAF operation (Poland, 2024). Fraudsters had routed these e-bikes through transit procedures to evade anti-dumping duties, resulting in one of the largest busts of illicit e-bike imports.*

As the above cases show, enforcement agencies have uncovered scams ranging from a few thousand to tens of thousands of e-bikes, with tax losses per case reaching into the millions of euros. The European Public Prosecutor’s Office, which became operational in 2021, has focused on these cross-border frauds against the EU budget. In the Netherlands alone, EPPO has launched multiple probes into e-bike import fraud in 2025, reflecting the priority of the issue. OLAF, working with national customs, has also led coordinated actions. For instance, the Irish warehouse raids in 2025 were part of an OLAF-led crackdown across several member states. In that case, OLAF analysts had provided customs authorities with evidence of the specific fraud techniques being used to dodge import duties and VAT, enabling targeted seizures. This collaborative approach is yielding results: “By working closely with Member States, OLAF helps ensure that those who try to exploit EU rules are identified and stopped. Together, we are making it clear that such abuse will not go unchecked,” said OLAF’s Director-General Ville Itälä. The message from these enforcement actions is that European authorities are actively pursuing e-mobility tax fraud, and perpetrators – no matter how well-hidden behind shell companies or false invoices – are increasingly being caught.

Risks to Consumers: Why Cheap Illegal Imports Aren’t Worth It

Consumers may be attracted by the low prices of electric bikes or scooters sold directly by overseas vendors. However, buying a product that has been smuggled or imported illegally comes with significant risks and hidden costs. Some of the dangers and disadvantages for consumers include:

• Product Safety Hazards: Smuggled e-bikes and e-scooters might not comply with EU safety standards. Legitimate importers must ensure vehicles have proper CE markings, certified battery chargers, and adherence to regulations like the Machinery Directive and battery safety rules. Fraudulently imported devices often bypass these checks. This raises the risk of accidents, such as battery fires or electrical malfunctions. Fire authorities warn that many cheap e-bike batteries and conversion kits sold online are dangerous “ticking bombs” that can ignite into ferocious fires. Without proper oversight, substandard lithium batteries or chargers can pose deadly hazards. Buying from an unknown seller who evaded customs means you have no guarantee the product has been tested or is even authentic.
• Unexpected Tax Bills or Seizures: If a package is not properly declared, you as the buyer might get a nasty surprise when it arrives. Under EU rules, all imports are subject to VAT (and duties if over €150). Reputable online platforms usually charge these at checkout or use the Import One-Stop-Shop system. But if a seller ships an e-bike covertly (for example, falsely labelled as a low-value item), customs could intercept it and hold you liable for the unpaid VAT/duties. In practice, delivery couriers may demand that you pay the outstanding import fees (plus administrative charges) before handing over the package. In worse scenarios, the goods might be confiscated by customs for violating import laws, leaving you with no product at all.
• No Warranty or Support: Illicit importers are here today, gone tomorrow. If your e-bike turns out to be defective or the battery dies after a few months, getting after-sales service or a refund could be impossible. Genuine brands sold through authorized dealers usually offer warranties and spare parts. By contrast, many shady marketplace sellers operate through shell companies that disappear (the aforementioned “missing trader” scenario). Consumers on forums have reported instances of ordering e-bikes that were purportedly shipped from a local EU warehouse, only to receive nothing or a useless item in the mail. While major platforms like AliExpress or Amazon may refund blatant scams, it’s a hassle and not guaranteed if the seller has already vanished.
• Ethical and Legal Issues: Purchasing a product that avoided import taxes, even unknowingly, can have broader implications. It contributes to unfair competition against law-abiding businesses and may indirectly support organized fraud. In rare cases, authorities could investigate buyers if there’s evidence of willful involvement in evasion (though enforcement tends to target the sellers). Supporting the gray market undermines the principles of consumer protection and tax fairness.

In summary, while that bargain electric scooter or bike from an overseas website might save you money upfront, it can carry significant hidden dangers. From a safety perspective and a financial standpoint, the potential downsides far outweigh the initial savings.

Broader Economic Consequences

The smuggling of e-bikes and e-scooters from China doesn’t just hurt individual consumers – it has wider repercussions for the European economy and industry. First and foremost is the loss of government revenue. Each container of undeclared e-bikes means tens of thousands of euros in unpaid duties and VAT that do not go to public budgets. For example, one OLAF investigation estimated €12 million in duties and taxes were dodged in a single scheme. Multiply such cases across Europe and the tax losses mount up, reducing funds that could be used for public services or infrastructure.

Another major impact is on fair competition and local businesses. European e-bike manufacturers and legitimate importers are operating at a heavy disadvantage if competitors sneak products in without the same cost burden. The EU introduced its anti-dumping duties precisely to level the playing field and protect the EU e-bike industry (which employs around 12,000 people) from being undercut by subsidized imports. When unscrupulous sellers evade those duties, it undercuts those protective measures. OLAF’s director noted that by evading taxes, fraudsters could sell bikes at “very competitive prices – easy to do when you evade taxes,” putting honest European workers’ jobs on the line. In France, the e-commerce federation FEVAD warned that Chinese online platforms not paying duties pose “a threat for all retailers,” since a French company importing the same product must pay import taxes while the overseas platform does not. This kind of unfair competition can drive legitimate EU-based sellers out of the market.

The proliferation of untaxed imports also risks encouraging a race to the bottom. If left unchecked, law-abiding companies might feel pressure to cut corners to compete, leading to more illicit trade and a further erosion of standards. Additionally, the influx of ultra-cheap e-bikes can dilute brand trust and flood the market with lower-quality products, which in turn can hurt consumer confidence in e-mobility.

Consumer Guidance: How to Avoid Scams and Buy Safely

For consumers looking to purchase an electric bike or scooter, there are several steps to take to ensure you’re getting a legitimate product and not unwittingly supporting fraud. Here are some tips to make an informed, safe purchase:

• Buy from reputable sellers or official distributors: Whenever possible, purchase e-bikes or e-scooters from established brands, authorized dealers, or well-known retail platforms that comply with EU import regulations. Be cautious with fly-by-night online marketplace vendors offering unbelievable prices.
• Watch out for “too good to be true” prices: Extremely low prices can be a red flag for tax evasion or scams. Compare the price to the typical market range for that model. If a €2,000 e-bike is being sold for €1,000 by an obscure seller, there’s a good chance costs are being cut by illicit means.
• Ensure VAT and duty are handled: Under EU law, all imports should have VAT paid. If you’re buying from an overseas seller, check how taxes are collected. If a seller claims “free shipping, no tax” on a €500+ item, that’s a red flag. When in doubt, assume that VAT/duties will apply and factor that into the cost.
• Look for compliance and certification: Check that the product meets EU standards – this is both a safety issue and a sign of legitimacy. The e-bike or scooter should have a CE mark and come with proper documentation. Remember, if you import an item directly, you technically become the “importer” responsible for compliance – a burden most consumers shouldn’t have to carry.
• Pay securely and keep records: Use payment methods that offer buyer protection (credit card, reputable payment services) rather than direct bank transfers to unknown sellers. This way, if the item never arrives or is vastly not as described, you have some recourse to dispute the charge.

By following these guidelines, consumers can greatly reduce the chances of falling victim to smuggling schemes or unsafe products. The key is to stay informed and vigilant: know who you are buying from, insist on compliance, and be wary of offers that look implausible. Not only will this protect you as a consumer, it also supports fair business practices and the development of a healthy, competitive market for electric bikes and scooters in the long run.

Disclaimer: This article is based on investigations and cases reported up to 2025, including sources from the European Anti-Fraud Office (OLAF), the European Public Prosecutor’s Office (EPPO), and other official reports. Always refer to the latest customs regulations and consumer advisories for up-to-date information.

References

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