Amazon's European unit and two managers could face trial in Italy over Chinese goods allegedly sold without proper payment of import value added tax (VAT) and customs duties.
According to a document seen by Reuters, Italian prosecutors have concluded their investigation and served a notice on Luxembourg-based Amazon EU, under Italy's corporate liability law, and on the two senior managers.
The procedural step typically precedes a request for trial.
Milan prosecutors allege that more than 1.5 million non-EU products were sold through Amazon's marketplace and logistics network in Italy without proper payment of those charges.
They put the unpaid import VAT at more than €3.52m ($3.9m), while customs authorities are still calculating the duties allegedly evaded, so the total claim could rise.
In total, 70 suspects received the notice, among them operators of online stores accused of importing mainly Chinese-made goods while bypassing customs declarations and import taxes.
Prosecutors allege Amazon failed to implement organisational measures capable of preventing customs offences and allowed non-EU goods to circulate through its logistics network despite alleged customs compliance irregularities.
They also allege Amazon knew, or should reasonably have known, that around 80% of goods handled through its Italian logistics system came from China, yet did not adequately check sellers, customs documentation or warehouse movements.
Amazon told the publication that it was “committed to complying with all applicable laws and regulations in every country where we operate and we require all sellers on our marketplace to do the same”.
“We will vigorously defend our position in this ungrounded proceeding,” the US company said.
It also said “unpredictable regulatory environments, disproportionate penalties, and protracted legal proceedings are increasingly affecting Italy’s attractiveness as an investment destination”.
Retail Insight Network has contacted Amazon for comment.
The development follows police raids in November last year on Amazon’s Italian headquarters in Milan and a logistics hub near Bergamo.
Under Italian law, recipients can submit arguments, documents and evidence before prosecutors decide whether to seek a trial.
