The European Commission expressed their intention to strengthen their effort to anti-fraud operations with the cooperation of the customs and tax authorities. As a part of its six-month European Union (EU) Presidency, Lithuania organized a Joint Customs Operation (JCO). It was run by its customs agency in conjunction with the European Anti-Fraud Office (OLAF). Each of the 28 EU member states participated where the analytical support was provided by the Commission’s Directorate General for Taxation and Customs Union and EUROPOL. It was the first such operation undertaken in close cooperation with tax authorities to embark upon excise and value-added tax (VAT) fraud.

Information and intelligence were exchanged in real-time throughout the operation. Direct communication with national contact points was possible as it was coordinated from OLAF’s Physical Operational Coordination Unit. Penalties for smugglers and traffickers are fixed at a national level through this operation and the tax liabilities of those convicted of fraud differ according to European and national legislation.  Those involved in the detected fraud schemes face prosecution and/or recovery actions from customs and tax authorities. Smuggled cigarettes and alcohol were seized and destroyed, as per the Community Customs Code. Other goods, such as mineral oil, were sold to recover evaded taxes.