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EU to sue US tobacco cos for cigarette smuggling
BRUSSELS. Julv 21 Tlx- European Union said Thursday It will sue several American tobacco companies for lost tax revenue, claiming it has evidence the companies are Involved in smuggling cigarettes Into the 15-nation EU, says AP.
Luc Veron, a spokesman for the European Commission, the EU's executive body, said the smuggling operation has cost the EU and Its member countries billions In lost revenue and Is the single biggest fraud on the EU budget.
He refused to make public the names of the companies allegedly Involved or say where the suit would be filed
"Were not In a position to
confirm brands or details or quantities or even the time scale of the alleged activities," said Peter Gullford, another EU spokesman.
Veron said the EU was taking the matter to a civil rather than criminal court because "we want our money back."
The Commission Is determined to defend the financial Interests of the European community " said Veron, briefing reporters on the Commission s decision. "So we want money.'
How much?
Billions. Billions. said Veron. "Name it euros or dollars. Billions."
Added Gullford: "The alm Is
to achieve a degree of compensation lor alleged losses of revenue. both community revenue and national revenue "
He did not say when the court action would be filed, only that it would be in the next few months
The EU's case follows a two-year investigation by the nntl-fraud office, the spokesmen said.
Officials at the US Mission to the EU said they were aware of the Investigation and confirmed there nave been contracts between the EU anti-fraud investigators and the Justice Department, but they said a civil suit against US tobacco companies would be a
rrlvate case not Involving the lb government.
While declining to describe how widespread the smuggling operation Is, the spokesmen said it involved bringing illegal cigarettes into every country in the EU.
Veron said entire shipping containers full of cigarettes are imported illegally from third countries, which he declined to name.
Taxes required under EU legislation Is not paid, he said, aciding that about I million eu-ios (dollars) Is levied on each container.
It Involves several thousand truckloads every year." he said