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Date: April 30, 2024 Tue
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Results for contraband tobacco
10 results foundAuthor: Levinson, Bruce Title: An Inquiry into the Nature, Causes and Impacts of Contraband Cigarettes Summary: The US Food and Drug Administration (FDA) is contemplating a ban on menthol-flavored cigarettes. Prior to reaching a preliminary decision, the agency and their independent science advisory panel are required to consider the “countervailing” effects a ban would have on smokers and non-smokers, including the creation of significant demand for contraband cigarettes. This monograph addresses the potential negative effects of a menthol ban by analyzing three facets of the contraband cigarette issue: 1) the nature of contraband cigarettes including consideration of how they may materially differ from legal products, such as by containing higher levels of heavy metals and other contaminants; 2) factors influencing the size of the contraband market and an estimation of how it would respond to a menthol ban; and 3) a discussion of the impacts of contraband cigarettes on society. Academic literature, findings by US government and foreign government agencies, and accounts from major media publications serve as the databases for the analyses. The monograph concludes that a ban on menthol-flavored cigarettes would significantly inflate the market for contraband cigarettes, many of which present even higher health risks than legally-made products. The increased health hazards from illicit cigarettes disproportionately impact underage and African American smokers. Details: Washington, DC: Center for Regulatory Effectiveness, 2011. 73p. Source: Internet Resource: Accessed February 13, 2012 at: http://www.fda.gov/downloads/AdvisoryCommittees/CommitteesMeetingMaterials/TobaccoProductsScientificAdvisoryCommittee/UCM243625.pdf Year: 2011 Country: United States URL: http://www.fda.gov/downloads/AdvisoryCommittees/CommitteesMeetingMaterials/TobaccoProductsScientificAdvisoryCommittee/UCM243625.pdf Shelf Number: 124121 Keywords: Black MarketsContraband Cigarettes (U.S.)Contraband TobaccoIllegal Tobacco |
Author: 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: Fleenor, Patrick Title: Cigarette Taxes, Black Markets, and Crime: Lessons from New York's 50-Year Losing Battle Summary: As large state government budget gaps have opened in the past year, lawmakers across the country are turning to cigarette taxes for added revenue. Twenty states raised cigarette tax rates in 2002, and more hikes may be on the agenda during state legislative sessions in 2003. Proponents of high cigarette taxes portray them as innocuous levies that improve public health. Yet those taxes have long been known to have a dark side. Since the first state cigarette taxes were imposed in the 1920s, black markets and related criminal activity have plagued high-tax jurisdictions. Such activity has proven to be resistant to law enforcement curtailment efforts. Thanks to recent city- and state-level tax hikes, New York City now has the highest cigarette taxes in the country-a combined state and local tax rate of $3.00 per pack. Consumers have responded by turning to the city's bustling black market and other low-tax sources of cigarettes. During the four months following the recent tax hikes, sales of taxed cigarettes in the city fell by more than 50 percent compared to the same period the prior year. New York has a long history of cigarette tax evasion. Former governor Malcolm Wilson dubbed the city the "promised land for cigarette bootleggers." Over the decades, a series of studies by federal, state, and city officials has found that high taxes have created a thriving illegal market for cigarettes in the city. That market has diverted billions of dollars from legitimate businesses and governments to criminals. Perhaps worse than the diversion of money has been the crime associated with the city's illegal cigarette market. Smalltime crooks and organized crime have engaged in murder, kidnapping, and armed robbery to earn and protect their illicit profits. Such crime has exposed average citizens, such as truck drivers and retail store clerks, to violence. The failure of New York policymakers to consider the broader effects of high cigarette taxes has been a mistake repeated across the country in the stampede to maximize tax revenue from this demonized product. Too often, policymakers do not consider these effects in the erroneous belief that people do not respond to government-created economic incentives. The negative effects of high cigarette taxes in New York provide a cautionary tale that excessive tax rates have serious consequences-even for such a politically unpopular product as cigarettes. Details: Washington, DC: Cato Institute, 2003. 20p. Source: Internet Resource: Policy Analysis no. 468: Accessed June 4, 2015 at: http://object.cato.org/sites/cato.org/files/pubs/pdf/pa468.pdf Year: 2003 Country: United States URL: http://object.cato.org/sites/cato.org/files/pubs/pdf/pa468.pdf Shelf Number: 108191 Keywords: Black MarketsCigarettesContraband TobaccoIllegal MarketsTax EvasionTobacco Control |
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: Leuprecht, Christian Title: Smoking Gun: Strategic Containment of Contraband Tobacco and Cigarette Trafficking in Canada Summary: anadians think of contraband tobacco and cigarettes as a nuisance at best, or a tax-revenue problem at worst, not in terms of organized crime or terrorism. This authoritative study of the size, scope, and operations of contraband tobacco and cigarettes in Canada reveals this to be a false dichotomy. Canadian law enforcement seizures of contraband tobacco routinely include high-powered weapons, hard and designer drugs, stolen vehicles and other merchandise, and lots of cash. Indeed the week this report was released, police in Quebec carried out 70 raids and made 60 arrests against an international criminal network involved in drug and contraband tobacco trafficking, and money laundering, in the largest anti-contraband operation to date. Contraband tobacco is lucrative, it is produced and trafficked systematically alongside other illicit goods, and Canadian crime syndicates are heavily invested in its proceeds. Globally, money from contraband tobacco and cigarettes is a major source of revenue for the likes of ISIS, al-Qaeda, and Hezbollah, whose contraband fundraising activities in North America have been subject to indictments. Producers and traffickers of contraband prey on the most vulnerable population groups in Canadian society. They brazenly flaunt restrictions on procurement, manufacturing, packaging, promotion, and sale of tobacco and cigarettes. Their ranks count hardened Mafioso and notorious criminal bikers who exploit Native communities. Tobacco farmers divert crops to the illicit market; some cooperate to reap higher profits, some uncooperative ones are coerced or have their tobacco stolen. Compared to illicit drugs, materials and manufacture are readily accessible, and the market for contraband tobacco and cigarettes is huge, highly profitable and easy to reach. The loss factor is minimal because chances of detection are small, penalties lenient (if any are imposed at all), and social stigma less than for alternative illicit activities. Canada's contraband market in tobacco and cigarettes is estimated at more than $1.3 billion, which rivals the narcotics market. In Ontario alone, the illicit cigarette market is roughly $500 million annually and forgone tax revenue between $1.6 billion and $3 billion. Enforcement is hampered by entangled jurisdictional issues, collective action problems within and across jurisdictions, scarce enforcement resources, legislative gaps, and, it seems, lack of a comprehensive plan, let alone strategy. There has been some institutional learning, and worthwhile innovations at different jurisdictional levels - federal, provincial, and First Nations. This study explores and compares some of these innovations to forge a comprehensive approach to contraband tobacco and cigarettes. Although law enforcement has a role to play, like so much other criminal activity, we are clearly not going to arrest our way out of this problem. Ultimately, a comprehensive strategy needs to change the incentive structures in place on both the demand and supply sides, optimize legislative and regulatory frameworks, and improve inter-agency and inter-jurisdictional coordination. Key recommendations include: Revenue sharing with First Nations The collection and administration of an excise tax by First Nations governments promises a sustained stream of revenue for community development and infrastructure projects and a significant incentive to reduce tax evasion in cigarette sales to non-Natives. In return for greater fiscal autonomy, sales to ineligible customers would be curbed by reducing the quota allocation to First Nations. Halting diversion from legitimate growers in Ontario Ontario is the only Canadian jurisdiction where tobacco is grown. Although the transition from the Ontario Flue-Cured Tobacco Growers' Marketing Board to the Ontario Ministry of Finance has tightened monitoring and enforcement of raw leaf tobacco, three changes will hamper the ability to investigate and interrupt diversion of tobacco to illicit markets: once harvested, growers no longer need to identify the source and the final destination of raw leaf; labelling information that tracks baled raw leaf tobacco is no longer required; and reporting frequency has been loosened from weekly to quarterly. Criminalizing the unlicensed growth, sale, purchase, and/or transport of raw leaf would acknowledge the serious consequences of diverted raw leaf and empower police to reinforce the licensing regime. Federal coordination and a Tobacco Ombudsman C-10 opens the opportunity for the federal government to facilitate coordination of a unified taxation structure for tobacco and cigarettes for all Canadian peoples, across provinces and reserves. This authority could be administered and enforced by a Canadian Tobacco Ombudsman under the aegis of the Minister of Public Safety. An ombudsman could improve coordination and communication among law enforcement agencies and between law enforcement and other regulatory bodies. Enforcement: Lessons learned Ontario recently announced a Contraband Tobacco Enforcement Team that stands to draw lessons from Quebec, where Project ACCES has proven quite successful over more than a decade. Moreover, it and its outcomes come at no additional cost to government. In fact, it more than pays for itself: by reaping fines and seizures, and realizing a growing tax base due to deterring contraband without a change in smoking rates, the project has seen a return of as much as 16 times the investment. Public awareness Consumers of contraband tobacco are blissfully unaware of their habit's connection with organized crime; greater awareness might stem consumption, especially if on-reserve manufacturers associated with organized crime are clearly distinguished from those who are not. Contraband has a more pervasive impact on the public safety of Canada, Canadians, and Canadian interests than terrorism has ever had. If Canadians only knew, they would demand that government act accordingly. Now they do. It is time to act to ensure the benefits of taxation accrue to all citizens instead of organized criminals and terrorists. Details: Ottawa, ONT: Macdonald-Laurier Institute, 2016. 65p. Source: Internet Resource: Accessed September 21, 2016 at: http://www.macdonaldlaurier.ca/files/pdf/MLILeuprechtContrabandPaper-03-16-WebReady.pdf Year: 2016 Country: Canada URL: http://www.macdonaldlaurier.ca/files/pdf/MLILeuprechtContrabandPaper-03-16-WebReady.pdf Shelf Number: 145611 Keywords: Cigarette Smuggling CigarettesContraband GoodsContraband TobaccoIllegal CigarettesIllegal TobaccoOrganized CrimeTax Evasion |
Author: Zhang, Bo Title: What Effect Does Tobacco Taxation Have on Contraband? Debunking the Taxation - Contraband Tobacco Myth Summary: Research demonstrates that many factors are associated with contraband tobacco use, including: easy access, misconceptions about "legal" purchase of cigarettes from First Nations' Reserves, insufficient enforcement and penalties, and organized criminal activity. It is frequently claimed that tobacco taxes cause smuggling. For example, a 2010 Fraser Institute Report, Contraband Tobacco in Canada: Tax Policies and Black Market Incentives, concludes that "Our research identifies federal and provincial tobacco excise taxes as a primary precipitating factor in the growth of this black market" (i.e., contraband cigarettes market). Does increasing tobacco tax necessarily increase contraband? To debunk the taxation and contraband tobacco myth we provide evidence from the literature, present Ontario trend data on tobacco taxes, consumption, prevalence and contraband, compare tax and price data in Canada, and critically review the Fraser Institute Report. Key Findings: - Evidence from many countries shows that tobacco tax increases will reduce tobacco use and increase tobacco revenues, even when there is some small amount of accompanied contraband tobacco use. Many of the small proportion of smokers who might move to contraband tobacco return to legal tobacco within a short period of time. - Accompanying increased tobacco taxes with anti-contraband measures are effective in keeping leakage to contraband tobacco. - Self-reported data on purchase of contraband cigarettes based on large population-based surveys show a significant decline between 2008 and 2012 in Ontario - a period during which tobacco taxes increased moderately. - The province of Quebec has successfully decreased contraband tobacco use substantially while maintaining and now raising tobacco taxes. - The Royal Canadian Mounted Police seizure data of contraband cigarettes also show a significant decline between 2008 and 2012 in Canada. - Many factors are associated with contraband tobacco use, including: easy access, misconceptions about "legal" purchase of cigarettes from First Nations' Reserves, insufficient enforcement and penalties, and organized criminal activity. Cigarette smoking prevalence and consumption has been declining since 2007 in Ontario, while tobacco taxes and tobacco tax revenue have been relatively stable during the same period, further supporting a decreasing trend in contraband tobacco use in Ontario. - Ontario and Quebec have the lowest tobacco taxes among all provinces in Canada, yet the number of consumers of contraband tobacco is the largest in these two provinces. - The Fraser Institute Report's conclusion is not supported by the evidence cited in the report and missed substantial evidence from the literature. Our conclusion is that the benefits of increased tobacco taxes outweigh any minor increase in contraband use that might occur. Tax increases are best accompanied by more stringent anti-contraband measures. Details: Toronto: Ontario Tobacco Research Unit, 2015. 32p. Source: Internet Resource: Accessed September 21, 2016 at: http://otru.org/wp-content/uploads/2015/02/special_tax_contraband_final.pdf Year: 2015 Country: Canada URL: http://otru.org/wp-content/uploads/2015/02/special_tax_contraband_final.pdf Shelf Number: 145614 Keywords: CigarettesContraband GoodsContraband TobaccoIllegal TobaccoTaxesTobacco Smuggling |
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 |