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Results for cigarette smuggling (malaysia)

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Author: Rejab, Ismail

Title: The Modus Operandi of Cigarette Smuggling in Malaysia

Summary: The Government of Malaysia acknowledged the dangers of cigarettes on health, through the Food Act 1983 which imposed certain policies on cigarette advertising and promotion. Giving free samples is prohibited under this law. These policies were intended to reduce smoking prevalence, but the morbidity studies conducted in 1997 showed that the prevalence had increased by 5% from 10 years earlier, when the first of such studies was conducted in 1987. There was no indication, however, of smoking among the children in the present study. The findings of the study could be flawed because our observations constantly show that cigarette smoking among younger Malaysians and young school children are on the rise. In addition to increased prevalence, there is a worrisome increase in cigarette smuggling, which makes the cigarettes available at slightly cheaper prices. There is a clear‐cut difference in the modus operandi of cigarette smuggling in Malaysia, between whites and kretek. The latter which are from Indonesia are smuggled by boats and landed on one of the Malaysian shores, stretching from Lumut on the west coast of Peninsular Malaysia to Kuantan on the east coast. In the East Malaysian states of Sabah and Sarawak, smuggling of Kretek has been observed at Miri and Bintulu in Sarawak and Lahad Datu, Sandakan and Tawau in Sabah. The same locations in Sabah and Sarawak are also used to land whites. The smuggling of whites takes on a more sophisticated method, seemingly through the legal channel. Whites from Europe and the Far East are brought in containers by vessels to the Singapore Port or directly to one of the ports in Malaysia, declared not as cigarettes but as non‐taxable goods. Alternatively, these cigarettes are declared as transshipment goods destined for a third country. As transshipment goods, they are not taxable and need not be examined by the Customs. On the way out to their destinations, these containers are instead smuggled into Malaysia. According to the cigarette industry, contraband and counterfeit cigarettes accounted for 21 per cent of the market share of cigarettes sold in Malaysia, costing the Government about RM1.2 billion (US$316 million) a year in unpaid duties . The amount confiscated by the Customs annually is far less, amounting to only about RM78 to RM80 million (US$20 to $21 million).

Details: Southeast Asia Tobacco Control Alliance, 2006. 45p.

Source: Internet Resource: Accessed July 22, 2013 at: http://www.seatca.org/dmdocuments/15_the_modus_operandi_of_cigarette_smuggling_in_malaysia.pdf

Year: 2006

Country: Malaysia

URL: http://www.seatca.org/dmdocuments/15_the_modus_operandi_of_cigarette_smuggling_in_malaysia.pdf

Shelf Number: 129484

Keywords:
Cigarette Smuggling (Malaysia)
Illegal Trade