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Date: April 30, 2024 Tue
Time: 1:53 am
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Results for contraband cigarettes
6 results foundAuthor: Sweeting, Jeff Title: Anti-Contraband Policy Measures: Evidence for Better Practice Summary: Tobacco taxation has been used in many jurisdictions as a policy measure to discourage smoking. The effectiveness of taxation strategies can be undermined by widespread availability of tobacco products. This knowledge synthesis presents information on a wide-range of tobacco anti-contraband measures, in an effort to ascertain the relative effectiveness of various policy measures for addressing contraband in Canada and around the world. This report is based on a comprehensive literature search, a series of key informant interviews, and four Expert Focus Panels with participants from Canada, the United States and several European jurisdictions. This paper identifies and defines the different forms of contraband tobacco, including casual bootlegging, organized international smuggling, illicit manufacturing, tax-avoidance from duty-free sources, and counterfeit cigarettes. The effectiveness of ten anti-contraband policy measures are explored: licensing, tax-markings/stamping, tracking and tracing, record-keeping/control measures, enhanced enforcement, export taxation, tax harmonization, tax agreements/compacts, legally binding agreements with the tobacco industry and memoranda of understanding (MOUs), and public awareness campaigns. Analysis suggests that both type of contraband and means of distribution influence the effectiveness of different policies and the unintended consequences of action. For example, policy measures that were effective for legally manufactured, but cross-border smuggled cigarettes in the 1990s are less effective for illicitly manufactured and counterfeit cigarettes that dominate contraband activity today in many countries. Case studies of Brazil, Australia and Canada indicate that while contraband sources often emerge domestically, given the ease of transport and manufacture, sources can be easily displaced to neighboring or overseas jurisdictions. Inter-agency cooperation (both domestic and international) emerges as a vital component of all successful anti-contraband strategies. The dynamic nature of contraband supply requires a comprehensive approach that focuses on both immediate and future threats. Policies designed to ensure contraband tobacco products do not appear in the legitimate retail sector (such as tax-paid markings, licensing, record-keeping) and measures to ensure that counterfeit products are easily identified (such as enhanced taxation stamps) are vital resources. Adequate investment in enforcement is critical to the success of anti-contraband measures. Ontario Tobacco Research Unit 2 Given the global scope of the phenomenon, greater international cooperation and information sharing is paramount. Obstacles and potential solutions to implementing various anti-contraband measures are examined from the unique perspective of Canadian First Nations. Very little data exists on contraband tobacco and there is almost no evaluative research on the effectiveness of anti-contraband policy measures, making study of the problem extremely challenging. Details: Toronto, ON: Ontario Tobacco Research Unit, 2009. 141p. Source: Internet Resource: Special Report Series: Accessed February 13, 2012 at: http://www.otru.org/pdf/special/special_anti_contraband_measures.pdf Year: 2009 Country: International URL: http://www.otru.org/pdf/special/special_anti_contraband_measures.pdf Shelf Number: 124123 Keywords: Black MarketsContraband CigarettesContraband TobaccoIllegal TobaccoSmugglingTaxes |
Author: KPMG Title: Project Sun: A study of the illicit cigarette market in the European Union. 2013 Results Summary: One in every ten cigarettes consumed in the European Union in 2013 were illicit, 33% of which were "illicit whites", an emerging type of illegal, branded cigarettes manufactured for the sole purpose of being smuggled, according to a KPMG study. At these levels, EU governments lost approximately L10.9 billion to the illegal market. KPMG found the highest illegal trade incidence levels for 2013 in Latvia (28.8%), Lithuania (27.1%), Ireland (21.1%), Estonia (18.6%) and Bulgaria (18.2%). The highest volumes of illegal cigarettes were consumed in Germany and France with 11.3 billion and 9.6 billion illegal cigarettes, respectively, and Poland and Greece where "illicit whites" accounted for 9.1% and 12.2% of consumption respectively. Other key findings include: - Overall, 58.6 billion illegal cigarettes were consumed in the EU; this is equivalent to the total legal cigarette markets of Spain and Portugal combined and represents a total tax revenue loss of L10.9 billion; - In 2013, 10.5% of all cigarettes consumed in the EU were illegal, compared to 11.1% in 2012 and 10.4% in 2011; - The prevalence of contraband - which excludes "illicit whites" and counterfeit - dropped significantly by 26.7% to 35.6 billion cigarettes; - "Illicit whites" reached a record high of 19.6 billion cigarettes, from virtually zero in 2006; and - The highest "illicit white" volumes for 2013 were measured in Poland (4.0 billion), Greece (2.8 billion), Spain (2.5 billion), Bulgaria (1.6 billion) and Germany (1.4 billion). Despite the overall decline in the illegal market in 2013, the EU's black market for tobacco remains a significant source of revenue loss for governments and a resilient competitor to the legitimate manufacturers and trade. This illegal activity not only comes at a financial cost, but it fosters criminality in local communities. British American Tobacco plc (BAT), Imperial Tobacco Group plc (Imperial), Japan Tobacco International (JTI) and Philip Morris International Inc. (PMI) continue to devote significant resources to combat this problem - above the requirements set out in their Cooperation Agreements with the European Commission - underpinned by the conviction that effective solutions require solid cooperation between governments, law enforcement agencies, manufacturers and retailers. For the first time since its inception in 2006, KPMG's study was commissioned by all four major tobacco manufacturers operating in the EU - BAT, Imperial, JTI and PMI. This allowed KPMG access to a wider set of data sources, which further refined and improved the completeness of the analysis. Prior to 2013, the study was commissioned by PMI as part of the company's commitments under its Cooperation Agreement with the European Commission. Details: Lausanne, Switzerland: Philip Morris International, 2013. 362p. Source: Internet Resource: Accessed July 31, 2014 at: http://www.pmi.com/eng/media_center/media_kit/pages/sun_report_2013.aspx# Year: 2013 Country: Europe URL: http://www.pmi.com/eng/media_center/media_kit/pages/sun_report_2013.aspx# Shelf Number: 132850 Keywords: Black MarketsContraband CigarettesContraband TobaccoIllegal Cigarettes (Europe)Illegal TobaccoIllegal Trade |
Author: Fleenor, Patrick Title: California Schemin': Cigarette Tax Evasion and Crime in the Golden State Summary: Earlier this year federal agents closed down a ring that allegedly smuggled millions of packs of cigarettes from North Carolina to California, affixed counterfeit stamps to them, and sold them to the general public. This illicit enterprise reportedly cost the state government some $4.3 million in lost revenue. On the morning of December 15, 2002, a band of robbers burst into a Merced distribution center and rounded its employees up at gunpoint. After tying up the workers the thieves used forklifts to load pallets of cigarettes into a truck. The robbers then grabbed rolls of California cigarette tax stamps and fled. Police estimated that the group made off with more than $1 million in loot. The 2002 heist was not the first time that the distribution center or its employees has been victimized. Two years earlier one of its trucks was hijacked by two men. Its driver was forced into a nearby orchard where he was bound and gagged. The bandits then made off with $40,000 worth of cigarettes. The thieves were later apprehended by police. These are just a few examples from the wave of tobacco-related crime that has swept California during the last eight or so years. At first glance these crimes appear bizarre. After all, each describes serious criminal activity involving a product not much different from the others that fill the shelves of convenience stores and gas stations. There is one major difference, however, and that is taxes. Since 1998 tax hikes have helped raise the price of cigarettes in California to approximately $4.00 per pack, well above the price in other states or elsewhere in the world. The first two tax hikes occurred in November of 1998 when voters narrowly approved Proposition 10 and California joined 45 other states in the Master Settlement Agreement (MSA) with the four largest tobacco manufacturers. Proposition 10 raised the state's cigarette tax from 37 to 87 cents per pack,4 and the MSA raised nationwide taxes on cigarettes by nearly $250 billion over the next 25 years.5 Two smaller tax hikes soon arrived from Washington, as the federal government raised its tax from 24 to 34 cents per pack in January 2000 and then to 39 cents at the beginning of 2003. On November 7 voters in California will decide whether to raise the state tax on cigarettes even higher, by an amount much larger than any state has ever considered. Proposition 86 would increase the state cigarette excise by $2.60, from its current rate of 87 cents to $3.47 per pack. Approval would give California the highest cigarette tax in the nation and push the price of a typical pack of cigarettes to around $6.50. Details: Washington, DC: Tax Foundation, 2015. 12p. Source: Internet Resource: Special Report No. 145: Accessed June 4, 2015 at: http://taxfoundation.org/sites/taxfoundation.org/files/docs/sr145.pdf Year: 2006 Country: United States URL: http://taxfoundation.org/sites/taxfoundation.org/files/docs/sr145.pdf Shelf Number: 135888 Keywords: Black MarketsContraband CigarettesContraband TobaccoIllegal TobaccoRobberyTax Evasion |
Author: KPMG Title: Project Star: 2012 Results Summary: KPMG has conducted a study on the illicit cigarette consumption in the European Union, every year since 2006, as part of the Cooperation Agreement between Philip Morris International, the European Union and the EU Member States. For the first time in 2013, the study was commissioned by all four major tobacco manufacturers - British American Tobacco plc (BAT), Imperial Tobacco plc (Imperial), Japan Tobacco International (JTI) and Philip Morris International Inc. (PMI). In the first years of the study, "illicit whites" did not have a significant presence in the EU and therefore were not analyzed in detail. In the years that followed and as these products became increasingly present in the illicit cigarette market, KPMG has analyzed past data and has estimated that "illicit whites" represented 0.1 billion cigarettes in 2006 and 2.6 billion cigarettes in 2007 Details: London: KPMG, 2013. 234p. Source: Internet Resource: Accessed January 14, 2016 at: http://www.pmi.com/eng/media_center/media_kit/Documents/Project_Star_2012_Final_Report.pdf Year: 2013 Country: Europe URL: http://www.pmi.com/eng/media_center/media_kit/Documents/Project_Star_2012_Final_Report.pdf Shelf Number: 137577 Keywords: Black Markets Contraband Cigarettes Contraband Tobacco Illegal Cigarettes (Europe) Illegal Tobacco Illegal Trade |
Author: KPMG Title: Project Sun: A study of the illicit cigarette market in the European Union, Norway and Switzerland. 2015 Results Summary: Key findings • Counterfeit and Contraband (C&C) as a proportion of total consumption declined marginally from 10.4% in 2014 to 9.8% in 2015 • The total volume of C&C consumed in the EU was 53.0 billion cigarettes with France and Poland experiencing the highest volumes • If the C&C volume in the EU had been consumed legally, an additional tax revenue of €11.3 billion would have been raised • By 2010 all four participants had signed agreements with OLAF committing to additional supply chain controls. C&C from lower priced countries within the EU has since declined from 22.2 billion to 6.5 billion cigarettes • Legal domestic consumption remained stable against a backdrop of improved economic conditions in many countries, whilst non-domestic legal (ND(L)) increased, supported by travel trends • Increased anti-illicit trade activity and border security reflected by a doubling in the volume of OLAF supported seizures, contributed to this overall decline of C&C • Illicit Whites brand flows, with limited or no legal distribution in the EU, again accounted for over one third of C&C, of which 5.3 billion cigarettes had Belarusian labelling • Counterfeit identified by the four participating tobacco manufacturers increased by 28% but remains less than 9% of illicit cigarette consumption in Europe • The changing mix of source countries and the increasing number of Illicit Whites brands demonstrates the flexibility of illicit cigarette flows Counterfeit and Contraband (C&C) declined by 6% against a backdrop of improved economic conditions and increased anti-illicit trade activities • Personal Disposable Income (PDI) increased by an average of 2.6%(2) across all EU member states, which may have contributed to a stabilisation of Legal Domestic Sales, reversing a five year trend • Many countries, especially in the Eastern EU, experienced more stable prices compared with 2014 when tobacco taxes increased to meet minimum EU excise requirements • Increased anti-illicit trade activity, as evidenced by a rise in the number of seizures made across Europe, may also have contributed to the C&C decline C&C remained at around 10% of total consumption, with Illicit Whites and counterfeit representing a greater share of illicit consumption Sources: (1) EU Flows Model 2009 – 2015 Share of consumption (%) 0 2 4 6 8 10 12 14 16 18 2009 2010 2011 2012 2013 2014 2015 3.7% 3.7% 3.7% 8.9% 9.9% 4.2% 5.0% 10.4% 12.6% 5.4% 14.1% 13.5% 15.2% 15.5% 15.8% 11.1% 10.5% 10.4% 5.9% 15.7% 9.8% Counterfeit and Contraband (C&C) Non-domestic legal (ND(L)) • Flows of C&C from outside of the EU were the largest component of C&C identified in the study • The overall proportion of Illicit Whites brand flows and counterfeit has grown to 44.3% in 2015 • The increased volume of seizures in Europe mainly identified counterfeit and Illicit Whites brand flows. Seizures of Duty Paid product from both within and outside the EU were limited C&C as a percentage of consumption was often highest in EU countries bordering lower priced non-EU countries • Eastern EU countries with high levels of C&C mainly bordered non-EU countries where average prices were 4 times lower • C&C as a percentage of consumption was also high in Greece, Norway, UK and Ireland, which also have the highest prices within Europe • Whilst not having the highest level of C&C as a proportion of consumption, the highest volume of C&C was identified in France Non-domestic legal (ND(L)) continued to increase against a backdrop of travel trends and price incentives Non-EU source products and counterfeit contributed an increasingly greater proportion of C&C The largest C&C source countries were those with the lowest prices on the Eastern EU border Illicit Whites brand flows continued to represent over one third of C&C in the EU, equating to 3.5% of total cigarette consumption Counterfeit experienced a 28% increase in volume, representing 9% of C&C consumption Details: London: KPMG, 2016. 208p. Source: Internet Resource: Accessed March 8, 2017 at: https://assets.kpmg.com/content/dam/kpmg/pdf/2016/06/project-sun-report.pdf Year: 2016 Country: Europe URL: https://assets.kpmg.com/content/dam/kpmg/pdf/2016/06/project-sun-report.pdf Shelf Number: 141381 Keywords: Black Markets Contraband Cigarettes Contraband Tobacco Counterfeit ProductsIllegal Cigarettes (Europe) Illegal Tobacco Illegal Trade |
Author: KPMG Title: Project Sun: study of the illicit cigarette market in the European Union, Norway and Switzerland Summary: Project SUN is KPMG's annual study that estimates the scale and development of the illicit cigarette market in the EU, Norway and Switzerland, commissioned by the Royal United Services Institute for Defence and Security Services. Key findings: Counterfeit and contraband (C&C) declined by 8.8%, to 48.3 billion cigarettes in 2016, but still accounted for over 9% of total consumption C&C continued to account over 9% of total consumption, representing a tax loss of up to L10.2 billion, making illicit trade one of the largest major competitors within the cigarette market In many cases illicit trade hotspots remained while the brands and countries of origin changed, demonstrating how local demand for illicit cigarettes continued despite the changing routes and sources used by cigarette smugglers Organised crime groups engaged in the illicit cigarette trade are increasingly diverse in the routes and methods they employ and in the products they manufacture, transport and sell. Details: London: KPMG, 2017. 234p. Source: Internet Resource: Accessed August 4, 2017 at: https://assets.kpmg.com/content/dam/kpmg/uk/pdf/2017/07/project-sun-2017-report.pdf Year: 2017 Country: Europe URL: https://assets.kpmg.com/content/dam/kpmg/uk/pdf/2017/07/project-sun-2017-report.pdf Shelf Number: 146716 Keywords: Black MarketsContraband CigarettesContraband TobaccoIllegal Cigarettes (Europe)Illegal TobaccoIllegal TradeIllicit TradeOrganized Crime |