Massive Fabric Import Fraud Scheme Uncovered in Morocco

It all started with repetitive and similar declarations from companies active in the import of tons of fabrics over the past four years. In the meantime, these companies had ceased all activity, both import and export of the raw materials imported from China. They were later exempted to export their finished products. However, these importers later imported tons of fabrics, manipulating their declarations filed with the Customs and Indirect Taxes Administration, reports Assabah.

These companies would have manufactured ready-to-wear clothing before exporting it to African countries. To succeed in their scheme, the importers would have used the names of ready-to-wear companies, "which ultimately served as a smoke screen to benefit from the tax exemption, before reselling them with higher margins," adds the daily. Doubting these declarations, the Customs and Indirect Taxes Administration, in collaboration with its African and Chinese counterparts, conducted an investigation, leading to a series of audits of the data communicated by these importers, as well as the nature of the relationships between them and their international partners.

The investigation confirms that Chinese operators had sold fabrics to the Moroccan importers concerned. In addition, the customs of several African countries have assured that they have no trace of ready-to-wear clothing from Morocco. In other words, "the fabrics imported from China had not been exported to Africa or elsewhere, but had indeed been resold in Morocco, thus taking advantage of the tax exemption to maximize the profits of the importers, concludes the investigation."