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Date: April 29, 2024 Mon
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Results for illegal tobacco
33 results foundAuthor: PriceWaterhouseCoopers Title: Illegal Tobacco Trade: Costing Australia Millions. Strategies to Curb the Supply and Use of Illegal Tobacco Products Summary: Latest intelligence shows that the illegal tobacco market remains a serious problem in australia, with an estimated 1.8 million kilograms of illegal tobacco in circulation in 2007. In addition to identifying the scope of the illegal tobacco market in Australia, this report provides meaningful options for regulatory intervention to prevent illegal tobacco trade. Details: Sydney: PriceWaterhouseCoopers, 2007. 55p. Source: Year: 2007 Country: Australia URL: Shelf Number: 118333 Keywords: Chop Chop CigarettesIllegal TobaccoIllegal TradeSmuggling (Tobacco, Australia) |
Author: Johnson, Paul Title: Cost Benefit Analysis of the FCTC Protocol on Illicit Trade in Tobacco Products Summary: Illicit trade in tobacco products is a serious global problem. It contributes to high mortality from smoking-related diseases, lost tax revenue ($40.5 billion globally) and growing organized crime. The current draft of the FCTC (Framework Convention on Tobacco Control, World Health Organization) protocol proposes a number of measures -- such as tighter control of the supply chain, enforcement and international cooperation -- which are expected to reduce the size of illicit trade globally. This report assesses the likely costs and benefits of such action from a U.K. perspective. In line with standard practice it looks at the costs of regulation to industry and government, the likely impact of the regulation on behavior and benefits which that may bring. Details: London: ASH (Action on Smoking and Health), 2010. 58p. Source: Internet Resource Year: 2010 Country: United Kingdom URL: Shelf Number: 118542 Keywords: Cost-Benefit AnalysisIllegal TobaccoIllegal TradeOrganized Crime |
Author: Ramos, Alejandro Title: Illegal Trade in Tobacco in MERCOSUR Countries Summary: This study examines the background to the illicit trade in tobacco in each of the four MERCOSUR countries (Argentina, Brazil, Paraguay and Uruguay) based on primary sources, such as interviews with law enforcement agents and customs agencies and, where possible, with participants and former participants in the illicit trade, and through secondary sources of information including journalistic, legal and institutional report. Details: Montevideo, Uruguay: ciet Uruguay (Centro de Investigacion de la epidemia de tabaquismo), 2009. 73p. Source: Internet Resource; Working Paper Year: 2009 Country: South America URL: Shelf Number: 118540 Keywords: Illegal TobaccoIllicit Trade |
Author: International Consortium of Investigative Journalists Title: Tobacco, Terrorism, and Illicit Trade: China, Paraguay, Ukraine: Inside the World's Top Smuggling Hubs; Taliban, al-qaeda, Other Terrorists Funded by Cigarette Black Markets Summary: The six-part series is part of Tobacco Underground, a year-long investigation by ICIJ into cigarette smuggling — featuring interactive maps, undercover video, online interviews with experts, and links to groups and documents worldwide. In addition to fueling corruption, organized crime, and terrorism, the illicit trafficking of tobacco robs governments of needed tax money and spurs addiction to a deadly product, the ICIJ series reports. “ICIJ shows again how the illicit trafficking of tobacco is out of control,” said Center Executive Director Bill Buzenberg. “Renegade factories, multinational companies, and weak enforcement all play a role in fueling this multi-billion dollar illegal trade, whose profits rival those of narcotics.” Experts believe that smuggled cigarettes — either untaxed legitimate brands or counterfeits — account for 12 percent of all cigarette sales, or about 657 billion “sticks” annually, making tobacco the world’s most widely smuggled legal substance. The cost to governments worldwide is massive: an estimated $40 billion to $50 billion in lost tax revenue each year. ICIJ first exposed the complicity of Big Tobacco in smuggling nine years ago, helping spark lawsuits and government crackdowns around the world. This report includes the following articles: (1) Terrorism and Tobacco: Extremists, Insurgents Turn to Cigarette Smuggling. Terrorists are increasingly turning to cigarette smuggling for funding. The move is part of a larger trend toward use of criminal rackets by terrorists, who find trafficking in cigarettes a high-profit, low-risk way to finance operations. Among the groups are Pakistan’s Taliban militias, for whom cigarettes are now second only to heroin as a funding source. (2)China’s Marlboro Country: A Massive Underground Industry Makes China the World Leader in Counterfeit Cigarettes. China now produces an unprecedented 400 billion counterfeit cigarettes annually. Cheap Chinese fakes are now sold in major cities worldwide, from New York delis to London storefronts. Officials believe China is the source of 99 percent of U.S. counterfeit cigarettes and up to 80 percent of those in the European Union. Lab tests reveal the Chinese counterfeits release 80 percent more nicotine and 130 percent more carbon monoxide than brand-name cigarettes, and have impurities that include insect eggs and human feces. (3) Smuggling Made Easy: Landlocked Paraguay Emerges as a Top Producer of Contraband Tobacco. Paraguay’s renegade factories produce more than 20 times what the country consumes, and are now responsible for 10 percent of the world’s contraband tobacco, experts estimate. The vast majority of the cigarettes — up to 90 percent of production, worth an estimated $1 billion— disappears into an often violent black market, law enforcement officials say. (4) Ukraine’s “Lost” Cigarettes Flood Europe: Big Tobacco’s Overproduction Feeds $2 Billion Black Market. Each year, the world’s four top multinational tobacco companies — Philip Morris International, Japan Tobacco International, Imperial Tobacco, and British American Tobacco — produce and import 30 billion cigarettes in Ukraine beyond what the country can consume, fueling a $2 billion black market that reaches across the European Union. Today, Ukraine is rivaled only by Russia as the top source of non-counterfeit cigarettes smuggled to Europe. Details: Washington, DC: International Consortium of Investigative Journalists, 2009. 36p. Source: Internet Resource: Accessed February 11, 2011 at: http://www.publicintegrity.org/news/entry/1534/ Year: 2009 Country: International URL: http://www.publicintegrity.org/news/entry/1534/ Shelf Number: 119537 Keywords: Black MarketsCounterfeit ProductsIllegal TobaccoIllicit TradeSmugglingTerrorism |
Author: von Lampe, Klaus Title: Provisional Situation Report on Trafficking in Contraband Cigarettes Summary: This report provides an assessment of the cigarette black market in Northwest Europe, based on a review of open source data. It also serves to tentatively explore the possibilities for a comprehensive and meanting assessment of the organized crime situation in this particular sector. Details: Brussels: European Commission, 2005. 53p. Source: Internet Resource: Assessing Organised Crime Research Project: Accessed July 8, 2011 at: http://www.organized-crime.de/AOC-DLV18-vR3.pdf Year: 2005 Country: Europe URL: http://www.organized-crime.de/AOC-DLV18-vR3.pdf Shelf Number: 122013 Keywords: Black MarketsIllegal TobaccoOrganized Crime (Europe)Smuggling (Tobacco) |
Author: Gabler, Nachum Title: Combatting the Contraband Tobacco Trade in Canada Summary: Contraband tobacco has been a recurring problem in Canada, and one that has become noticeably worse over the past decade. It has been estimated that contraband tobacco makes up roughly 30% of the total Canadian tobacco market. In 2009, the RCMP seized a record high of 975,000 cartons of contraband cigarettes. Key factors fueling the contraband trade include relatively high and rising tobacco excise taxes, the inability of law enforcement to impede tobacco smuggling, Aboriginal autonomy in taxation and on-reserve law enforcement, and the erroneous perception that lawful and contraband tobacco are close substitutes. Health Canada contends that contraband tobacco undermines existent anti-smoking initiatives. Furthermore, the black market for tobacco deprives the private sector of business revenues and the public sector of excise tax receipts. Perhaps most alarming of all, the contraband tobacco trade has been linked by the RCMP and other law enforcement agencies to an assortment of related criminal activities. This study proposes six policies for combatting the contraband tobacco trade. Details: Fraser Institute, Studies in Risk and Regulation, 2011 Source: Internet Resource: Accessed on December 6, 2011 at: http://www.fraserinstitute.org/uploadedFiles/fraser-ca/Content/research-news/research/publications/combatting-contraband-tobacco-trade-in-canada.pdf Year: 2011 Country: Canada URL: http://www.fraserinstitute.org/uploadedFiles/fraser-ca/Content/research-news/research/publications/combatting-contraband-tobacco-trade-in-canada.pdf Shelf Number: 123494 Keywords: Black MarketsIllegal TobaccoTobacco Smuggling |
Author: Physicians for a Smoke-Free Canada Title: Estimating the Volume of Contraband Sales of Tobacco in Canada: 2006-2010 Summary: Although contraband tobacco sales have been identified as a major concern by health organizations, tobacco suppliers and governments, there have been no official government estimates provided of the level of contraband activity in Canada. We previously attempted to estimate the volume of contraband cigarettes in Canada by comparing actual sales to historic levels of consumption on a per‐smoker basis. To do this we used estimates of the number of smokers produced by the Canadian Tobacco Use Monitoring Survey, sales data from Health Canada reports of wholesale shipments, and historic levels of consumption by taking an average consumption from the first 3 years of the CTUMS survey (1999‐2001). We believe that problems and limitations of this approach have increased over time. • CTUMS is no longer the only annual survey of tobacco use, and discrepancies between it and the other large national survey, the Canadian Community Health Survey, are increasing. • Health Canada has changed the way it reports wholesale shipments of tobacco products, in ways that produce discrepancies with volumes we cited earlier. This data is not provided in a consistent manner (i.e. either weight or unit measurement), and adjustments are required to some reports. • Basing actual consumption on measurements that were taken a decade earlier, before smoking bans were implemented and taxes were increased seem less reliable over time. • The largest tobacco company has changed its manufacturing and wholesaling practices, which have unknown effects on regional reports of shipments. To respond to these challenges, we are repeating our estimation exercise with a few changes and several additional caveats. Details: Ottawa, ONT: Physicians for a Smoke-Free Canada, 2011. 18p. Source: Internet Resource: Accessed February 13, 2012 at: http://www.smoke-free.ca/pdf_1/2011/contraband2010.pdf Year: 2011 Country: Canada URL: http://www.smoke-free.ca/pdf_1/2011/contraband2010.pdf Shelf Number: 124118 Keywords: Black MarketsContraband Tobacco (Canada)Illegal CigarettesIllegal Tobacco |
Author: Barkans, Meagan Title: Contraband Tobacco on Post-Secondary Campuses in Ontario Summary: In Ontario 27% of young adults smoke, and annual surveillance data suggests tobacco use is plateauing after years of decline. The availability of inexpensive contraband tobacco products maybe contributing to this situation. Limited research has been conducted on the use of contraband tobacco and despite the increasing availability of contraband 'Native cigarettes', no studies to date have examined their use among young adults. Accordingly, this study examines: (a) what proportion of cigarette butts discarded on post-secondary campuses are contraband; and (b) whether the proportion of contraband butts varies between colleges and universities, across seven geographical regions in the province and based on proximity First Nations reserves. In March and April 2009, discarded cigarette butts were collected from the grounds of 25 post-secondary institutions across Ontario. At each school, cigarette butts were collected on a single day from four locations. The collected cigarette butts were reliably sorted into five categories according to their filtertip logos: legal, contraband First Nations Native cigarettes, international and suspected counterfeit cigarettes, unidentifiable and unknown. Contraband use was apparent on all campuses, but varied considerably from school to school. Data suggest that contraband Native cigarettes account for as little as 1 % to as much as 38 % of the total cigarette consumption at a particular school. The highest proportion of contraband was found on campuses in the Northern part of the province. Consumption of Native contraband was generally higher on colleges compared to universities. The presence of contraband tobacco on all campuses suggests that strategies to reduce smoking among young adults must respond to this cohort's use of these products. Details: St. Catharaines, ONT: Brock University, Applied Health Sciences, 2010. 116p. Source: Internet Resource: Master's Essay: Accessed February 13, 2012 at: http://dr.library.brocku.ca/bitstream/handle/10464/3152/Brock_Barkans_Meagan_2010.pdf?sequence=1 Year: 2010 Country: Canada URL: http://dr.library.brocku.ca/bitstream/handle/10464/3152/Brock_Barkans_Meagan_2010.pdf?sequence=1 Shelf Number: 124119 Keywords: Black MarketColleges and UniversitiesContraband Tobacco (Canada)Counterfeit CigarettesIllegal CigarettesIllegal Tobacco |
Author: 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: TRANSCRIME Title: Plain Packaging and Illicit Trade in the UK: Study on the Risks of Illicit Trade in Tobacco Products as Unintended Consequences of the Introduction of Plain Packaging in the UK Summary: This study analyses the risks of the illicit trade in tobacco products (ITTP) which may arise as the unintended consequences of the introduction of plain packaging of tobacco products in the UK. The tobacco market is a dual market. It consists of a legitimate and an illegal part, which implies that changes to the legal market may affect the illicit market as well. The ITTP is a threat to the effectiveness of tobacco control policies aimed at curbing smoking and its dangerous effects on human health. Details: Trento, Italy: Transcrime - Joint Research Centre on Transnational Crime, 2012. 38p. Source: Internet Resource: Accessed September 14, 2012 at: http://transcrime.cs.unitn.it/tc/fso/pubblicazioni/AP/Transcrime-Plain_packaging_and_illicit_trade_in_the_UK.pdf Year: 2012 Country: United Kingdom URL: http://transcrime.cs.unitn.it/tc/fso/pubblicazioni/AP/Transcrime-Plain_packaging_and_illicit_trade_in_the_UK.pdf Shelf Number: 126346 Keywords: Counterfeit ProductsCounterfeitingIllegal TobaccoIllicit Tobacco (U.K.)Organized Crime |
Author: Calderoni, Francesco Title: Crime Proofing the Policy Options for the Revision of the Tobacco Products Directive: Proofing the Policy Options Under Consideration for the Revision of EU Directive 2001/37/EC Against the Risks of Unintended Criminal Opportunities Summary: The report by Transcrime uses a widely endorsed crime proofing methodology that assesses opportunities for crime inadvertently created by regulation. Analyzing all the proposed policy options for the revision of the TPD, Transcrime found three major policy areas which are likely to increase crime: generic packaging for tobacco products, implementation of a “polluter pays principle” and a ban on the display of tobacco products at the point of sale. “The crime proofing exercise we have conducted has shown that some of the policy options envisaged by the European Commission carry significant risks of creating unintended opportunities for the illicit trade in tobacco products. In particular, there is a high risk that a measure such as generic packaging may increase the counterfeiting of tobacco products and make it difficult for consumers to distinguish legitimate products from illegitimate ones” said the report’s author, Professor Ernesto Savona. Available information on the currently on-going impact assessment for the revision of the TPD indicates that the Directorate General for Health and Consumer Protection (DG SANCO) paid almost no attention to the potential impacts on the illegal trade in tobacco products. “Contrary to their own guidelines, European policymakers rarely consider the crime risk implications when drafting new legislation and the revision of the Tobacco Products Directive by DG SANCO seems to confirm this,” continued Professor Savona. In the report, Transcrime emphasizes the need for further research and attention by policy makers to assess, among the many consequences, also the crime impact of proposed tobacco policy measures, something that has been systematically overlooked so far. Details: Trento, Italy: Transcrime - Joint Research Centre on Transnational Crime, 2012. 60p. Source: Internet Resource: Accessed September 14, 2012 at: http://transcrime.cs.unitn.it/tc/537.php Year: 2012 Country: Europe URL: http://transcrime.cs.unitn.it/tc/537.php Shelf Number: 126347 Keywords: Counterfeit TobaccoCounterfeitingCrime PreventionCrime ProofingIllegal TobaccoIllicit TobaccoOrganized CrimeTobacco Control Policy |
Author: TRANSCRIME Title: Analysis of the Draft Protocol to Eliminate Illicit Trade in Tobacco Products Summary: This report analyses the Draft Protocol to Eliminate Illicit Trade in Tobacco Products, currently under negotiation by the Intergovernmental Negotiating Body established by the Conference of the Parties to the World Health Organisation's Framework Convention on Tobacco Control. This study assesses the impact of the Draft Protocol on the illicit trade in tobacco products, identifying strong and weak points and possible improvements. This report also surveys the existing measures falling within the scope of the Draft Protocol in four countries in different continents (Canada, Italy, Singapore and South Africa), highlighting the differences and the incoherence among the surveyed countries. Details: Trento, Italy: Transcrime, 2012. 73p. Source: Internet Resource: Accessed September 18, 2012 at: http://transcrime.cs.unitn.it/tc/fso/pubblicazioni/AP/Transcrime-Analysis_of_the_Draft_Protocol_to_eliminate_ITTP.pdf Year: 2012 Country: International URL: http://transcrime.cs.unitn.it/tc/fso/pubblicazioni/AP/Transcrime-Analysis_of_the_Draft_Protocol_to_eliminate_ITTP.pdf Shelf Number: 126366 Keywords: Illegal TobaccoIllicit Trade |
Author: Caneppele, Stefano Title: Crime Proofing of the New Tobacco Products Directive Summary: This study concerns the crime proofing of the Proposal for the Revision of the Tobacco Products Directive presented in December 2012, and it is an update of a study on the crime proofing of the policy options under consideration of the revision of Directive 2001/37/EC. The crime proofing of legislation is a scientific approach developed by Transcrime in 2006 (Savona, 2006a; Savona, 2006b; Savona, Calderoni et al., 2006; Savona, Maggioni, et al., 2006; Morgan and Clarke, 2006; Albrecht and Kilchling, 2002). The core idea is that legislation may produce unintended opportunities for crime, thereby having potential criminogenic effects. When these opportunities and where they may occur is known, the legislation may be "proofed" against crime. This study is concerned with the impact of the new Tobacco Products Directive (TPD) on crime, and all the more so on the Illicit Trade in Tobacco Products (henceforth ITTP), an area that has not been considered by any of the impact assessment studies carried out by the EU Commission in preparation of the new Directive. Consequently, no knowledge is officially available on the impact of the new regulation upon the ITTP. This report aims at filling this gap by using the available data and making estimates. In January 2012, Transcrime presented a study which proofed the policy options under consideration for the revision of EU Directive 2001/37/EC against the risks of unintended criminal opportunities for the illicit trade in tobacco products (Calderoni, Savona, & Solmi, 2012). The study highlighted that "DG SANCO paid almost no attention to the impact on the ITTP" and that "certain measures considered for the revision of the TPD may have serious consequences" regarding possible risks of increased ITTP (Calderoni et al. 2012, p.42). The impact assessment (IA) released on December 2012 denies the risks of the ITTP. The EU Commission declared "that the preferred policy options do not [ in the assessment of the Commission - lead to increased illicit trade" (European Commission, 2012a, p. 6). More than being the result of an IA of the policy options and their trade-off on ITTP, this statement is an a priori assumption that excludes the area of crime from the IA carried out by the EU Commission. This is a serious flaw that may compromise the validity of the results of the impact assessment itself, and which does not comply with the EU's official impact assessment guidelines (European Commission, 2009). Details: Trento, IT: Transcrime, 2013. 88p. Source: Internet Resource: Accessed July 28, 2014 at: http://www.transcrime.it/wp-content/uploads/2013/11/Crime-Proofing-of-the-NEW-TPD_6.pdf Year: 2013 Country: Europe URL: http://www.transcrime.it/wp-content/uploads/2013/11/Crime-Proofing-of-the-NEW-TPD_6.pdf Shelf Number: 132805 Keywords: Cigarette Smuggling (Europe) Counterfeiting Illegal Tobacco Illicit TradeTobacco Smuggling Underground Economy |
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: International Tax and Investment Center Title: Asia-14: Illicit Tobacco Indicator 2013 Summary: This study is an update and expansion of our previous research, 'Asia-11 Illicit Tobacco Indicator 2012'. In light of newly available data sources, it has been possible to extend the coverage to include Cambodia, Laos, and Myanmar, resulting in full coverage of the 10 ASEAN member countries plus Australia, Hong Kong, Pakistan, and Taiwan. In 2013, 10.9% of cigarettes consumed in Asia-141 were illicit Total Consumption (legal and illicit) across the Asia-14 was an estimated 760.1 billion cigarettes in 2013. Of this, 10.9% or 82.8 billion cigarettes in Asia-14 were estimated to have been illicit. In ASEAN, Total Consumption was an estimated 608.2 billion cigarettes in 2013. Of this, 9.1% or 55.6 billion cigarettes were estimated to have been illicit. In 2013, the share of Illicit Consumption increased in 7 of the 11 markets that were part of the 'Asia-11 Illicit Tobacco Indicator 2012' report Nearly three quarters of Illicit Consumption occurred in just three markets: Pakistan (22.8% Illicit), the Philippines (18.1%), and Vietnam (20.7%). In the 11 markets for which estimates are available for both 2012 and 2013 (i.e., the 'Asia-11'), Illicit Consumption is estimated to have increased by 20.1%, from 66.5 billion cigarettes to 79.9 billion cigarettes (an increase of 13.4 billion cigarettes). This was driven primarily by the rise in Illicit Consumption in the Philippines (by 12.7 billion cigarettes, an increase of 198%), underpinned by significant growth in Domestic Illicit Consumption. 7 markets (Australia, Brunei, Indonesia, Malaysia, the Philippines, Taiwan, and Vietnam) saw an increase in the share of Illicit Consumption in Total Consumption of cigarettes between 2012 and 2013. The steepest rise was again in the Philippines. However, Pakistan, and Singapore saw noticeable declines in the share of Illicit Consumption in 2013, the former a result of declining Domestic Illicit volumes, and the latter a consequence of a decline in Contraband. In both cases, however, the share of Illicit Consumption in Total Consumption remained much higher than the Asia-14 average. Domestic and Non Domestic Illicit both contributed to the rise in Illicit Consumption in Asia There was a 181.2% rise in Domestic Illicit Consumption in the Philippines (equal to 11.0 billion cigarettes). A small amount of Domestic Illicit was also identified in Indonesia in 2013. A number of markets saw a rise in Non-Domestic Illicit cigarettes in 2013. Consumption of Contraband cigarettes increased in Indonesia and Taiwan, while consumption of Counterfeit cigarettes rose sharply in the Philippines. There were increases in Non-Domestic Illicit of Unspecified Market Variant in Australia and Vietnam. Asia-14 government tax revenue losses from Illicit Consumption totalled US$ 3.9 billion in 2013 The tax loss associated with Illicit Consumption of cigarettes increased in 6 markets compared with 2012. In the 11 markets for which estimates are available for both 2012 and 2013, the estimated tax loss from Illicit Consumption increased from US$ 3.4 billion in 2012 to US$ 3.9 billion, an increase of 13.8%. The largest rise in tax loss in absolute terms was in the Philippines (497%). Australia and Indonesia also experienced a significant rise in estimated tax losses from Illicit Consumption. The government tax revenue losses from Illicit Consumption in the ASEAN region totalled US$ 2.1 billion in 2013. Details: Oxford, UK: Oxford Economics, 2014. 220p. Source: Internet Resource: Accessed October 8, 2014 at: http://www.pmi.com/eng/tobacco_regulation/illicit_trade/Documents/Asia-14%20Illicit%20Tobacco%20Indicator%202013.pdf Year: 2014 Country: Asia URL: http://www.pmi.com/eng/tobacco_regulation/illicit_trade/Documents/Asia-14%20Illicit%20Tobacco%20Indicator%202013.pdf Shelf Number: 134222 Keywords: CigarettesContrabandEconomic CrimesFinancial CrimesIllegal MarketsIllegal TobaccoIllicit Products (Asia)Illicit TobaccoTax Evasion |
Author: International Tax and Investment Center Title: Asia-11: Illicit Tobacco Indicator 2012 Summary: In 2012, 9% of cigarettes consumed in Asia-11 were illicit Total Consumption (legal and illicit) across the Asia-111 markets covered in this report totalled an estimated 736.4 billion cigarettes in 2012, of which 9.0% or 66.5 billion cigarettes are estimated to have been illicit. This includes consumption of illicit imports and illicit products locally manufactured, such as under/non-declared products from local manufacturers. Illicit share was over 25% in five markets Brunei, Hong Kong, Malaysia, Singapore, and Pakistan all had estimated shares of illicit cigarettes in Total Consumption of over 25% in 2012. Illicit volumes were highest in Pakistan, Vietnam, and Malaysia In 2012, in both Vietnam and Pakistan, Illicit Consumption was over 20 billion cigarettes. In Malaysia the volume of illicit cigarettes was estimated at almost 8 billion. Domestic illicit cigarette volumes were highest in Pakistan and the Philippines In Pakistan and the Philippines, illicit cigarettes produced by local manufacturers and sold in the market without payment of taxes totalled an estimated 25 billion cigarettes in 2012. Asia-11 government tax revenue losses from Illicit Consumption totaled US$ 3.4 billion in 2012 The biggest tax losses in absolute terms occurred in Australia, Malaysia, Hong Kong, and Vietnam. Details: Oxford, UK: Oxford Economics, 2013. 132p. Source: Internet Resource: Accessed October 8, 2014 at: http://www.pmi.com/eng/tobacco_regulation/illicit_trade/Documents/Asia_11_Illicit_Tobacco_Indicator_2012.pdf Year: 2013 Country: Asia URL: http://www.pmi.com/eng/tobacco_regulation/illicit_trade/Documents/Asia_11_Illicit_Tobacco_Indicator_2012.pdf Shelf Number: 133908 Keywords: Cigarettes ContrabandEconomic Crimes Financial Crimes Illegal Markets Illegal Tobacco Illicit Products (Asia) Illicit Tobacco Tax Evasion |
Author: International Tax and Investment Center Title: Asia-11: Illicit Tobacco Indicator: 2013 Update for the Philippines Summary: Excise rates on the majority of cigarettes in the Philippines (Low-tax tier) rose by 341% on 1st January 2013. Excise rates on brands in the Mid-tax tier increased by 231%, while "premium-price" brands (High-tax tier) saw an increase of 108% in excise rates. This tax increase has contributed to a 59% rise in the pack price of the most sold brands in both the "low-price" and "premium-price" segments. The price increase on the most sold brand in the "super-low price" segment was highest at 175%. Legal Domestic Sales dropped almost 16% in 2013 from a year earlier. However, this decline was almost fully offset by an increased level of Illicit Consumption. As a result, Total Consumption (legal and illicit) was only down 3% in 2013. There has been a sharp rise in Illicit Consumption from 5.9% in 2012 to an estimated 18.1% of Total Consumption or 19.1 billion cigarettes in 2013. This rise primarily relates to increased consumption of Domestic Illicit cigarettes, which has risen sharply from 5.6% of Total Consumption in 2012 to an estimated 16.3% of Total Consumption or 17.1 billion cigarettes in 2013. There has also been an 800% increase in the consumption of Counterfeit cigarettes, which accounted for 1.8% of Total Consumption or 1.8 billion cigarettes in 2013, compared to 0.2% of Total Consumption in 2012. The cigarette tax revenue loss (excise and VAT) has risen to PHP 15.6 billion in 2013, representing an increase of 497% compared to 2012. Details: Oxford, UK: Oxford Economics, 2014. 32p. Source: Internet Resource: Accessed October 9, 2014 at: http://www.oxfordeconomics.com/Media/Default/landing-pages/asia11/report-asia11-2014.pdf Year: 2014 Country: Philippines URL: http://www.oxfordeconomics.com/Media/Default/landing-pages/asia11/report-asia11-2014.pdf Shelf Number: 134220 Keywords: Cigarettes (Philippines)ContrabandEconomic Crimes Financial Crimes Illegal Markets Illegal Tobacco Illicit Products Illicit Tobacco Tax Evasion |
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: Iringe-Koko, Ibiere Belinda Title: Illicit Tobacco: Policy Responses, Consumption and Attitudes Summary: The existence of the illicit tobacco trade has serious implications for tobacco control efforts as it encourages smoking by providing tobacco products at a cheaper price. Although this illicit trade has serious ramifications for public health in England, there is very limited data on its nature, the extent of its use and smokers' views on illicit tobacco. This thesis aimed to address this by utilising a mixed methodology approach which consisted of population based surveys of English smokers and in-depth face-to-face interviews with smokers. Prevalence of illicit tobacco use appeared to decrease between 2007-8 and 2012, but there was an increase from 2010-11 to 2012. 'Under the counter' tobacco purchases in retail shops emerged as a prominent source of illicit tobacco, although smokers were able to access a number of illicit sources. Smokers who exclusively purchased illicit tobacco paid much less for their tobacco products compared with those who reported exclusive duty-paid tobacco purchases. Report of illicit tobacco use was more likely in younger smokers, males, smokers in low socio-economic groups, smokers of 'roll your own' tobacco and those with high tobacco dependence in 2012. However, this changed with each survey, as illicit tobacco use appeared to become more widespread across socio-demographic sub-groups. Illicit tobacco users reported lower levels of motivated to quit smoking. However, smokers in the interview study reported that loss of access to illicit tobacco would drive them to think about quitting or cutting down on their smoking. The interview study revealed that smokers were able to easily access illicit tobacco in their communities and social circles. In addition, smokers viewed the illicit tobacco market and illicit traders approvingly as providing a means of accessing affordable tobacco products. Furthermore, they were unperturbed by the illegality and associated criminality of illicit tobacco trade. Due to the nature of this illegal activity, further research should investigate how the illicit tobacco market evolves in response to policy efforts. Details: London: University College London, 2013. 465p. Source: Internet Resource: Dissertation: Accessed August 5, 2015 at: http://discovery.ucl.ac.uk/1463373/1/Belinda%20Iringe-Koko%20PhD%20THESIS%20%5BFINAL%5D.pdf Year: 2013 Country: United Kingdom URL: http://discovery.ucl.ac.uk/1463373/1/Belinda%20Iringe-Koko%20PhD%20THESIS%20%5BFINAL%5D.pdf Shelf Number: 136326 Keywords: CigarettesIllegal TobaccoIllicit TobaccoIllicit Trade |
Author: Edwards, Charlie Title: On Tap: Organised Crime and the Illicit Trade in Tobacco, Alcohol and Pharmaceuticals in the UK Summary: The illicit trade in tobacco, alcohol and pharmaceuticals is often more attractive to organised criminals than, for example, drug trafficking, given that it is a low-risk and high-value activity. The high profit margins associated with illicit trade are used to fund other criminal activities - a fact not widely understood by the British public. The true scale of the illicit trade in the UK is hard to determine, but not impossible to measure. On Tap is the culmination of a twelve-month study on illicit trade conducted in three regions of the UK - the northwest, east and southwest of England. It provides the first in-depth investigation of the intersection of organised crime and illicit trade in tobacco, alcohol and pharmaceuticals, and suggests a number of steps the government and other actors should take to combat the problem. Details: London: Royal United Services Institute for Defence and Security Studies, 2014. 79p. Source: Internet Resource: Whitehall Report 3-14: Accessed August 5, 2015 at: https://www.rusi.org/publications/whitehallreports/ref:O54DB446798BA2/ Year: 2014 Country: United Kingdom URL: https://www.rusi.org/publications/whitehallreports/ref:O54DB446798BA2/ Shelf Number: 136330 Keywords: Illegal ProductsIllegal TobaccoIllicit TradeOrganized Crime |
Author: Chaudhry, Peggy Title: The Impact of Plain Packaging on the Illicit Trade in Tobacco Products Summary: The illicit trade in consumer products is a dynamic problem with a global reach. Measuring the scale of this trade and the worldwide value of illicitly-traded products is inherently difficult given the illegal nature of this activity, but most accept that it has grown significantly over the last few decades. While the loss of tax revenue is the most measurable impact of illicit trade, other negative consequences center on: harm to consumers; damage suffered by intellectual property owners and legitimate supply chain members; and profits to organized criminal groups. Packaging is a critical deterrent to the counterfeiting of consumer products. Reflecting the challenges of measuring the scale of all global illicit trade, there are no reliable statistics for calculating precisely the size of the worldwide illicit tobacco problem. Some estimates suggest that around 10 to 11% of the global cigarette market is illicit, representing over 600 billion cigarettes a year. Cigarettes can be thought of as the 'ideal smuggled product' since the product is light, extremely valuable for its size and weight, and easy to transport and conceal in shipments of other products. There are various types of illicit tobacco products and the nature of this trade varies between markets. Some markets are mainly a source of illicit products, others are transit routes, and still others are destination markets for consumption. In this report, the serious illicit trade issues affecting the UK are used as a case study. Factors spurring the growth of illicit tobacco trade include: affordability of unlawful cigarettes compared to lawful ones; huge profit incentives for illicit traders; low criminal penalties disproportionate to these profit incentives; and widespread consumer complicity. This trade is assisted by the geographic characteristics of some markets (e.g., destination countries with borders more conducive to receiving illicit product). Currently packaging that is complex or innovative acts as a deterrent to counterfeiters of tobacco products since keeping up with the evolving packaging of genuine product is an expensive and time-consuming process. Packaging is also one of the few ways smokers and law enforcement agencies can use to assess whether a product is genuine or counterfeit. Illicit traders are often nimble, adapting to changing consumer demands and the regulatory environment. They enjoy the business benefits of product diversification without the regulatory constraints faced by manufacturers of legitimate product. The organized criminal gangs often behind the illicit tobacco trade also have the ability to exploit global networks of contacts and to work closely with other criminal enterprises. Tackling the illicit trade in tobacco products requires a multi-level response including national and international collaboration between regulators, enforcement agencies, and those who operate within the legitimate product supply chain. A careful review of the relationship between plain packaging for tobacco products and illicit tobacco trade is required given the pre-existing, serious societal impacts of this illegitimate trade. In our expert opinion, plain packaging for tobacco products will worsen the illicit trade in tobacco products as it would open a number of new opportunities for illicit traders. Notably, plain packaging will allow the illicit traders to provide counterfeit cigarettes using the mandated plain packaging specified by national legislation. The advent of plain packaging may also encourage new entrants to the lucrative business of counterfeiting cigarette packs since the costs and barriers of getting into this business will be reduced; reductions in start-up costs may encourage those without the resources to manufacture an authentic-looking copy of currently available sophisticated pack designs to begin counterfeiting plain packs. The recent Australian plain packaging legislation shows why this is the case: - Plain packs will be easier to counterfeit. In Australia, each cigarette pack can be covered only in a shade of "drab brown" specified by the regulator. In addition, the law forces the use of the most commonly counterfeited pack shape - a flip top box. - Illicit traders are effectively given a blueprint of 'how to make the pack.' Pack specifications will be made available online in contrast to the current practice where design specifications and colors are deliberately kept confidential in order to deter counterfeiters. - Static packaging reduces future cost burdens for illicit traders. A uniform pack design, like the one mandated in Australia, removes the need to keep up with the manufacturers' evolving pack innovations and developments, therefore, reducing the cost burden on counterfeiters since there will be no additional investment necessary until there is a further change in the law. - Plain packaging creates economies of scale in production. Once one plain pack brand is faked, the counterfeiter can reproduce packaging of each brand on the market with minimum effort since the only difference on each pack is the 'brand and variant names' that appear only in a specified font/size. Ironically, while plain packaging makes life easier and cheaper for counterfeiters, it may make life more difficult for consumers, retailers, and law enforcement agencies to differentiate between genuine and fake packs. Those who conduct forensic investigative analysis of packs may have to resort to more resource-intensive and time-consuming tools of verification in a plain packaging environment. Complex health warnings, tax stamps, or holograms will not be an effective deterrent to counterfeiting these much simpler packs. Such 'anti-counterfeiting' markings are already easily faked and counterfeiters generally only replicate enough to 'fool the consumer.' Track and trace requirements are also not the answer as these apply only to manufacturers of genuine product (and, even then, not all of them). In addition, these requirements cannot provide the information smokers need to tell if they have bought a fake pack. Plain packaging would also provide illicit traders with new opportunities to: - Offer counterfeit branded packaging that predates the introduction of the plain packaging measure. While brand owners will be prevented from using their iconic branding, criminals will not. Smokers who want to use familiar branded packs may continue to - wrongly - assume that the branded illicit product being offered is genuine but produced in another market when it is, in fact, fake. - Maintain or increase sales other types of branded packs: 'illicit whites' and contraband genuine product. In our expert opinion, plain packaging is highly likely to aggravate the existing negative impacts of the already serious and socially damaging trade in illicit tobacco. Since illicit products are often more accessible to those underage and those from low-income groups, plain pack laws risk undermining a key objective of plain packaging: to reduce smoking by these groups. We foresee that creating a plain packaging environment will also intensify the following serious societal impacts of the illegitimate trade: - Negative impacts on governments and taxpayers. The loss of tax revenues as more smokers shift from licit to illicit product has a multiplier effect since governments have less funding for healthcare, education, and other public services. 'Cross border shopping' is also likely to increase with the search for familiar branded packs providing an added incentive to the price benefits of buying packs abroad, further reducing government tax revenue in the smoker's 'home market.' - Detrimental influences on communities and society. An array of problems arises from illicit trade that range from cultivating consumers of illicit product who disrespect the law to fostering organized crime groups. These groups often penetrate low-income communities with their cheap products and enlist vulnerable people to perform perceived 'soft crimes,' such as 'ant smuggling.' In the long run, this illicit trade may 'normalize' criminal behavior and lead the individuals involved towards other acts of criminality. - Costs to legitimate manufacturers and retailers. Increased sales of fake products shift revenues from legitimate manufacturers and jobs from the highly-skilled legitimate workforce employed at all levels of the supply chain. Legitimate retailers already lose business to those involved in illicit tobacco trade. - Additional harmful effects to smokers. Regulators and public health officials have repeatedly expressed the concern that smokers are exposed to greater health risks by consuming illicit product. - Profits made by serious criminal organizations. The profits stemming from illicit tobacco trade are often used to finance other serious criminal or terrorist activity including prostitution, human trafficking, and trading of lethal weapons. In summary, we recommend a careful appraisal be given to these unintended negative consequences before plain packaging regulations are developed. Policy makers should be aware that plain packaging will, in our expert opinion, make the illicit trade in tobacco worse and these policy makers should therefore be exceptionally careful to ensure that such regulations do not inadvertently undermine anti-illicit trade programs and initiatives. Details: Villanova, PA: The Authors, 2012. 187p. Source: Internet Resource: Accessed September 30, 2015 at: http://www.peggychaudhry.com/publications/Impact_on_illicit_trade.pdf Year: 2012 Country: International URL: http://www.peggychaudhry.com/publications/Impact_on_illicit_trade.pdf Shelf Number: 136921 Keywords: CigarettesCounterfeit GoodsDesign Against CrimeIllegal TobaccoIllicit TradeOrganized Crime |
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: Power, Gerald Title: Illicit Tobacco in South East London: A Survey of Smokers Summary: The illicit tobacco trade is often seen as a 'Robin Hood' type enterprise with a few locals smuggling cigarettes for their friends so they can enjoy an otherwise expensive luxury. However, if this was ever true, the reality of this trade is now is very different. Criminal gangs are very heavily involved in the illicit tobacco trade and the majority of the illicit cigarettes sold are counterfeits manufactured outside the EU specifically to be smuggled into the UK in bulk. One sea container full of counterfeit cigarettes can generate well over a million pounds in profit for a gang. Also heavy tobacco consumption is now strongly associated with deprivation rather than being a luxury enjoyed by richer communities. This can be seen in all six South East London Boroughs where smoking rates for routine and manual workers within boroughs are consistently much higher than the borough averages. Furthermore, as national and regional levels of smoking and smoking related diseases fall as a result of taxation, education , support in quitting and laws limiting where people can smoke, illicit tobacco has the potential to maintain heath inequalities in communities. In recognition of this Health and Trading Standards Teams have been working together in South East London as part of an initiative to reduce the harm done by illegal tobacco in these communities. This work is aimed at joining up health and trading standards enforcement work to get the best outcomes for communities. In simple terms, if the supply of cheap illicit tobacco in to a community can be stemmed, then the investments in health and education work produce a far better set of outcomes. Limiting the trade also limits the presence of the criminal gangs that manage it. This survey of one thousand seven hundred smokers within the boroughs of Bexley, Bromley, Greenwich, Lambeth, Lewisham and Southwark was part of that joint work and aims to better understand the illicit tobacco trade and help in finding better ways of dealing with it. Details: London: South East London Illegal Tobacco Cluster, 2013. 32p. Source: Internet Resource: Accessed August 2, 2016 at: https://www.lambeth.gov.uk/sites/default/files/ssh-illicit-tobacco-survey-report.pdf Year: 2013 Country: United Kingdom URL: https://www.lambeth.gov.uk/sites/default/files/ssh-illicit-tobacco-survey-report.pdf Shelf Number: 139950 Keywords: Counterfeit CigarettesIllegal TobaccoOrganized CrimeSmuggling CigarettesTobacco Smuggling |
Author: Stewart, Glenn Title: Illicit and Illegal Tobacco in North Central and North East London: A report on smokers' perceptions, supply and demand Summary: The smoking related health burden is well-documented. It causes some 100,000 deaths a year in the UK, 86,000 deaths a year in England and for every smoking death it is estimated that there are 20 people with smoking related illnesses. Equally her Majesty's Revenue and Customs (HMRC) estimates that in 2012-13, the illicit market share for cigarettes was 9% indicating a 'tax-gap' of L1.1 billion (e.g. the gap between the tax owed and collected) and that illicit hand-rolling tobacco accounted for 36% of the market with a tax-gap of L900m. An understanding of the trade in illicit and illegal trade in tobacco products is therefore important from both a health and economic perspective In April 2013, the South East London Illicit Tobacco Group commissioned a survey of their respective boroughs (Bexley, Bromley, Greenwich, Lambeth, Lewisham and Southwark) to gain insights into the market for illegal and illicit2 tobacco in the respective boroughs. In May 2015 the boroughs of Camden, Enfield, Hackney, Haringey, Islington, Tower Hamlets and Waltham Forest commissioned the same survey in their boroughs. The same survey methodology and company was used in both instances with a few additional questions added to the survey on attitudes. The seven boroughs involved in the survey in NC NE London are very different: 2011 census data indicates that population size varies from 220,338 in Camden to 312,466 in Enfield; over-18 smoking prevalence ranges from 15.8% in Enfield to 21.7% in Islington, the 'White British' population from 48% in Islington to 31% in Tower Hamlets (compared to 80% in England and 45% in London) and the over 50's population from 28.8% in Enfield to 15.8% in Tower Hamlets. Details: London: London Borough of Enfield, 2015. 31p. Source: Internet Resource: Accessed August 3, 2016 at: http://www.smokefreeislington.nhs.uk/wp-content/uploads/2016/01/Illicit_and_illegal_tobacco_report_NE_NC_London_November_2015.pdf Year: 2015 Country: United Kingdom URL: http://www.smokefreeislington.nhs.uk/wp-content/uploads/2016/01/Illicit_and_illegal_tobacco_report_NE_NC_London_November_2015.pdf Shelf Number: 139970 Keywords: CigarettesIllegal TobaccoIllicit Tobacco |
Author: de Lacy, Elen Title: Illegal Tobacco: Undermining Tobacco Control Measures in Wales Summary: ASH Wales Cymru has identified illegal tobacco as a priority area for tobacco control in Wales. Around 531,000 adults, or approximately 21% of the adult population in Wales, are smokers1. Illegal (or illicit*) tobacco constitutes a serious public health risk by undermining initiatives aimed at reducing smoking rates. Smuggled tobacco is most likely to be sold in deprived areas2 where rates of tobacco consumption are already creating significant ill health in Wales. ASH Wales Cymru is committed to raising awareness of the problem of illegal tobacco among key stakeholders and the Welsh public. Article 1 of the World Health Organization (WHO) Framework Convention on Tobacco Control (FCTC) defines illicit trade as 'any practice or conduct prohibited by law and which relates to production, shipment, receipt, possession, distribution, sale or purchase including any practice or conduct intended to facilitate such activity' 3. The main forms of tobacco smuggling are: - Counterfeit - Non-Duty Paid - Cheap Whites/Illegal Whites In 2014 ASH Wales Cymru received a grant from the Tobacco Advisory Group at Cancer Research UK to commission the first ever study into the scale and problem of illegal tobacco across Wales. This study is based on similar work from the 'Tackling Illicit Tobacco for Better Health' programme which has had a measurable effect on the problem in three regions of England (North East, North West, South West)4 . ASH Wales Cymru has produced this report to set out clear recommendations to reduce the availability and consumption of illegal tobacco across Wales. An all-Wales tackling illegal tobacco stakeholder group oversaw this work. As part of this study ASH Wales Cymru commissioned two pieces of work: 1) A pan-Wales illegal tobacco survey conducted by NEMS Market Research** NEMS market research was commissioned in March 2014 to undertake a Wales-wide survey to provide a baseline on illegal tobacco use and to better understand the cheap tobacco market. 2) An enforcement report An enforcement report was commissioned in June 2014 to examine the crime and enforcement aspects of the supply of illegal tobacco in Wales. This has been produced by Steven Hay (Littleton Murdoch Ltd.) who has over 20 years of operational and managerial experience of working in Local Authority Regulatory Services. Details: Cardiff: Ash Wales; Cancer Research UK, 2015. 57p. Source: Internet Resource: Accessed August 30, 2016 at: http://ashwales.org.uk/assets/factsheets-leaflets/illegal-tobacco-undermining-tobacco-control-measures-in-wales-eng.pdf Year: 2015 Country: United Kingdom URL: http://ashwales.org.uk/assets/factsheets-leaflets/illegal-tobacco-undermining-tobacco-control-measures-in-wales-eng.pdf Shelf Number: 140102 Keywords: Counterfeit TobaccoIllegal TobaccoIllicit TobaccoOrganized CrimeTobacco ControlTobacco Smuggling |
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: Calderoni, Francesco Title: The Eastern Balkan Hub for Illicit Tobacco Summary: Key hubs are crucial sets of countries on the regional, continental or global map of the illicit trade in tobacco products. Analysis of key hubs instead of single countries enables a more comprehensive understanding of the factors determining the transnational illicit flows and a more effective identification of the strategies to fight and prevent the ITTP (Illicit Trade in Tobacco Products). The following elements often characterise key hubs: • medium to high levels of the ITTP in the hub, • significant price differentials of tobacco products across the hub, • extensive engagement of local manufacturers in the ITTP, • substantial flows of illicit tobacco to, within or from the hub to other countries. This report focuses on the Eastern Balkan hub for illicit cigarettes. Bulgaria is the most relevant country in the hub because it has significant inflows and outflows of illicit tobacco products. The sorrounding countries (Greece, Macedonia, Romania, Serbia and Turkey) are included because they enables and facilitate these flows. The report takes the name from the geographical area of the countries included. Details: Milano: Transcrime – Università Cattolica del Sacro Cuore, 2016. 53p. Source: Internet Resource: Accessed December 23, 2016 at: http://www.transcrime.it/wp-content/uploads/2016/08/TheEasternBalkanHubforIllicitTobacco.pdf Year: 2016 Country: Europe URL: http://www.transcrime.it/wp-content/uploads/2016/08/TheEasternBalkanHubforIllicitTobacco.pdf Shelf Number: 147806 Keywords: CigarettesIllegal TobaccoIllegal TraceIllicit TobaccoIllicit TradeTobacco Smuggling |
Author: Ellis, Clare Title: On Tap Europe: Organised Crime and Illicit Trade in Spain: Country Report Summary: The criminal networks behind Spain's illicit trade are sophisticated, agile and often active in other areas of criminality. In contrast to other countries studied, there does not appear to be a decisive shift away from the established high-risk activities of organised crime (such as trafficking narcotics) towards illicit trade, which is considered comparatively low-risk both in terms of detection and potential sanctions. Instead, the flexibility of organised crime groups in Spain includes both forms of activity, with groups moving between different illicit commodities and between crime types as opportunities arise. While Spain has long acted as a transit hub, a substantial domestic market for illicit goods has also developed. There appears to be limited infiltration of legal supply chains, with stringent regulatory systems largely preventing illicit goods from being sold through registered retailers. However, such goods remain readily available from a variety of sources, suggesting that measures have displaced rather than suppressed the sale of illicit products. Production of illicit goods within Spain is also an emerging trend, with illegal tobacco, alcohol and pharmaceutical factories uncovered in recent years. This paper identifies four specific drivers that underpin this complex and evolving role: the significant price differentials with nearby countries and territories; the impact of the global financial crisis on the Spanish economy; a social acceptance of illicit goods and the perception among the public that illicit trade is not a serious criminal issue; and the application of relatively lenient sanctions against those convicted of crimes related to illicit trade. It is the combination of these factors that has simultaneously created demand for illicit products, fuelled their supply, and offered limited deterrence for participation in this form of criminality. Details: London: Royal United Services Institute for Defence and Security Studies, 2017. 53p. Source: Internet Resource: Occasional Paper; On Tap Europe Series No. 2: Accessed January 30, 2017 at: https://rusi.org/sites/default/files/201701_op_on_tap_europe_spain_final.2.pdf Year: 2017 Country: Spain URL: https://rusi.org/sites/default/files/201701_op_on_tap_europe_spain_final.2.pdf Shelf Number: 145542 Keywords: Drug TraffickingIllegal Tobacco Illicit GoodsIllicit Trade Organized Crime |
Author: Jeffray, Calum Title: On Tap Europe: Organised Crime and Illicit Trade in Greece: Country Report Summary: Organised crime in Greece has historically been presented as an external threat, and the country’s vast coastline is indeed vulnerable to small-scale smuggling of various illicit goods from overseas, while its two major ports are frequently targeted by smugglers. As a result, Greece is widely cited as a key entry point for illicit goods into Europe, with the majority of illicit trade occurring in the regions where the two biggest cities and ports – Athens and Thessaloniki – are located. Illicit trade is not seen as an isolated problem in Greece, but as part of a broader category of economic crimes. It is closely linked to tax evasion, corruption and fraud. However, specific information on the scale and the scope of illicit trade in Greece is limited and tends to be largely anecdotal, reflecting a lack of publicly available information on organised crime more broadly. Authorities suggest that the way in which criminals in Greece organise themselves has evolved from strict, hierarchical structures to a more flexible ‘enterprise model’ in which a network of smaller OCGs is established for a particular operation. Groups that smuggle goods tend to deal across multiple commodities, moving between products based on the profit that can be made at any one time, regardless of the risk. Some illicit markets seem to be growing: data show that legitimate tobacco and alcohol sales are both decreasing, but there has not been a similar reduction in consumer demand. This paper makes various key findings. First, the debt crisis that has affected Greece since 2008 has undeniably had an impact on local illicit markets, making the black market more attractive to some consumers and affecting the resources available to law enforcement authorities. Second, during this period of economic uncertainty, authorities have focused on tackling crimes that they believe have the biggest impact on state revenues, such as tax evasion, excise evasion, fraud, and bribery and corruption. Third, Greece has become an attractive hub for smuggling activity for various reasons, including its combination of remote and porous land borders and its long coastline, the scale of operations at the port of Piraeus, which makes monitoring the content of incoming containers a challenge, and because the country is in the Schengen Area, which means that the circulation of goods into the rest of Europe is relatively straightforward. Fourth, there is only limited information available on the scale and scope of organised crime activity, and of illicit trade in particular. Finally, identifying 'little and often' smuggling operations, whether by sea or by land, requires an excellent intelligence picture, which Greece has struggled to achieve. Details: London: Royal United Services Institute for Defence and Security Studies, 2017. 51p. Source: Internet Resource: Occasional Paper; On Tap Europe Series No. 3: Accessed February 24, 2017 at: https://rusi.org/sites/default/files/201702_op_on_tap_europe3_greece.pdf Year: 2017 Country: Greece URL: https://rusi.org/sites/default/files/201702_op_on_tap_europe3_greece.pdf Shelf Number: 141207 Keywords: Corruption and FraudDrug Trafficking Illegal Tobacco Illicit Goods Illicit Trade Organized CrimeSmugglingTax Evasion |
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 |