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Date: April 29, 2024 Mon
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Results for tobacco smuggling
16 results foundAuthor: Great Britain. HM Revenue and Customs Title: Tackling Tobacco Smuggling Together Summary: The Tackling Tobacco Smuggling strategy has been the foundation of the Government’s success in reducing the illicit tobacco market. A new partnership between HM Revenue & Customs and the UK Border Agency, drawing on the strengths of both organisations, will now take the strategy forward, ensuring that there is no let-up in the fight against tobacco smuggling. The strategic approach will focus on the following key objectives: 1) A broader collective understanding of the risks - through our combined risk and intelligence capability; 2) To make the most effective deployment of the combined resources; 3) By increasing the deterrent value of our activity – working collaboratively with other enforcement agencies at home and abroad; 4) By improving detection at the border; 5) By increasing the impact of inland enforcement activity; 6) By matking the most effective use of the combined powers and sanctions; 7) By strengthening international partnerships; and 8) By strengthening regional and local partnerhips. Details: Tackling Tobacco Smuggling Together: An Integrted Strategy for HM Revenue & Customs and the UK Border Agency Source: Internet Resource Year: 0 Country: Uruguay URL: Shelf Number: 119405 Keywords: Border SecurityIllegal TradeTobacco Smuggling |
Author: Merriman, David Title: Understand, Measure, and Combat Tobacco Smuggling Summary: The intended purpose of this tool is to let readers gain the necessary knowledge about tobacco smuggling. With this knowledge, policy responses can be developed and further monitored in order to establish their effectiveness, appropriateness, and impact on other policy goals. For example, if enhanced tax revenue is one goal of a tobacco taxation policy, smuggling can be an important consideration, since smuggled tobacco avoids taxation. Likewise, tobacco smuggling can have an impact on health policies, as it can be difficult to regulate health warnings and conditions of sale on smuggled tobacco. More specifically, by using the methods presented in this tool, a more accurate and objective understanding of tobacco smuggling can be gained. Tobacco manufacturers, distributors and sellers, and others with a narrow self-interest in the design of tobacco control policy often misrepresent the degree of tobacco smuggling. Well-documented, methodologically sound, quantitative estimates of tobacco smuggling are a useful tool for educating policymakers about the costs and benefits of various policies. Moreover, unbiased estimates of smuggling, and the change in smuggling over time, are essential tools to evaluate the success of many tobacco control policies. Why use this tool? Because of its illegal nature, smuggling can be more difficult to estimate than many other variables relevant to tobacco control. Analysts can demonstrate the reliability of these estimates by using several different methods and data sets, five of which are presented here. And while the precise quantitative estimates can vary with the method used, all estimates should yield compatible results if appropriate data and techniques are employed. Thus, presenting results from multiple studies increases the validity of one’s conclusions. Details: Washington, DC: World Bank, 2003. 62p. Source: Internet Resource: Accessed April 15, 2011 at: http://siteresources.worldbank.org/INTPH/Resources/7Smuggling.pdf Year: 2003 Country: International URL: http://siteresources.worldbank.org/INTPH/Resources/7Smuggling.pdf Shelf Number: 110501 Keywords: Tobacco Smuggling |
Author: International Tax Title: The Relationship Between Taxation, Consumption and Smuggling of Tobacco Summary: In this paper, we review analysis published recently by the World Bank and others looking at the impact of cigarette taxation on tobacco consumption and smuggling, focusing on four key issues: • The effect of increases in taxation on overall tobacco consumption, smuggling and government revenues — The World Bank (1999) argues that higher taxation will lead to a significant reduction in cigarette consumption, especially in middleand low-income economies, while at the same time increasing government tax revenues. But our analysis demonstrates that, although higher taxes may have a significant impact on legitimate (ie tax-paid) tobacco sales, its impact on overall consumption is likely to be mitigated by a marked rise in purchases of smuggled cigarettes. As well as limiting the impact of higher taxation on overall tobacco consumption, smuggling also undermines the tax base, reducing government revenues. Moreover, high taxes — particularly under an ad valorem regime — encourage consumers to trade down to cheaper cigarettes, which also reduces government revenues. • Tobacco smuggling: the role of tax differentials and its wider impact on society — Merriman et al (2000) argue that it is the ease of tax evasion rather than price differentials that are most important in determining the level of tobacco smuggling in a country. But while we would accept that there is sometimes a relationship between the general level of corruption in a country and the extent of cigarette smuggling, we would challenge the claim that corruption is more important in influencing smuggling than cigarette taxes and prices. Experience in the UK and US, for example, demonstrates that high excise taxes can generate a serious problem with smuggling even in countries with very effective law enforcement and administration. Moreover, it is important to recognise the other costs associated with measures that encourage tobacco smuggling, such as increased criminality and the creation of infrastructures that allow smuggling of other products as well. • The role of governments: law enforcement and administration — The World Bank (1999) claims that increasing the certainty and severity of law enforcement and prosecution is the most straightforward and sometimes the most effective way of discouraging smuggling. But while sensible regulatory and administrative policies have an important part to play in countering smuggling, experience in the UK, for example, shows that Customs enforcement measures have only a limited impact while large tax differentials persist, and are also very expensive to implement. • The effect of benchmark tax rates for cigarettes and their relationship with purchasing power — The World Bank (1999) suggests that cigarette taxation should be set at two-thirds to four-fifths of the total retail price of cigarettes. This is far too simplistic a prescription. It makes no allowance for local conditions, such as the level of income, efficiency of Customs enforcement, tax rates in neighbouring economies, etc. Measured relative to purchasing power, cigarette taxes in many developing economies are already significantly higher than in developed countries. Raising excise taxes in such circumstances would encourage increased smuggling and criminality, and undermine the government tax base. Details: Washington, DC: ITIC, 2003. 12p. Source: Internet Resource: Accessed May 11, 2011 at: http://www.iticnet.org/Public/other_publications.aspx#divYear2003 Year: 2003 Country: International URL: http://www.iticnet.org/Public/other_publications.aspx#divYear2003 Shelf Number: 121716 Keywords: Illicit TradeTaxationTobacco Smuggling |
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: U.S. House Committee on Homeland Security, Republican Staff Title: Tobacco and Terror: How Cigarette Smuggling is Funding our Enemies Abroad Summary: It has been well-reported that terrorist and criminal organizations are conducting illicit business operations within the United States, sending the profits overseas to finance domestic and international terrorist and criminal organizations. Recent law enforcement investigations have revealed that these profits, estimated to be in the millions of dollars annually in the United States along, are generated in part by illicit cigarette trafficking. Historically, the low-risk, high profitability of the illicit cigarette trade served as a gateway for traditional criminal traffickers to move into lucrative and dangerous criminal enterprises such as money laundering, arms dealing, and drug trafficking. Recent law enforcement investigations, however, have directly linked those involved in illicit tobacco trade to infamous terrorist organizations such as Hezbollah, Hamas, and al Qaeda. These startling discoveries led U.S. House Committee on Homeland Security Ranking Member Peter T. King (R-NY) to launch an investigation of the issue. The following staff report - which will focus on the estimated millions of dollars in illicit tobacco profits being funneled to terrorist groups overseas as well as New York State's refusal to enforce tobacco laws - is the result of numerous interviews with law enforcement official at the local, State, and Federal level, as well as open-source research. Details: Washington, DC: U.S. House Committee on Homeland Security, 2007. 15p. Source: Internet Resource: Accessed September 24, 2012 at https://www.documentcloud.org/documents/412462-tobacco-and-terror-how-cigarette-smuggling-is.html Year: 2007 Country: United States URL: https://www.documentcloud.org/documents/412462-tobacco-and-terror-how-cigarette-smuggling-is.html Shelf Number: 126414 Keywords: Cigarette SmugglingIllegal TradeIllicit TobaccoTerrorist FinancingTobacco Smuggling |
Author: World Customs Organization Title: Illicit Trade Report: 2012 Summary: Illicit trade involves money, goods or value gained from illegal and otherwise unethical activity. It encompasses a variety of illegal trading activities, including human trafficking, environmental crime, illegal trade in natural resources, intellectual property infringements, trade in certain substances that cause health or safety risks, smuggling of excisable goods, trade in illegal drugs, and a variety of illicit financial flows. These activities cause a wide range of economic, social, environmental or political damage. Estimates of the global retail value of illicit trade vary, but recent estimates by Global Financial Integrity (GFI) place the total at US$ 650 billion for goods, and at US$ 2 trillion if illicit financial flows are included1. Customs administrations address risk wherever it is found and, increasingly, as early in the supply chain as possible. The WCO, through its Customs Enforcement Network (CEN), has been recording Customs seizures worldwide to allow tracking and analysis of the latest trends and patterns in relation to illicit trade. These recorded seizures do not only contribute to better knowledge about current smuggling and cross-border criminal activities but also reveal important information about evolving or emerging risks in the international Customs context. The WCO Illicit Trade Report comprises six chapters. Each chapter is dedicated to a single thematic area : Drugs, Revenue, IPR/Health and Safety, Environment, Security and the Customs Enforcement Network. The commentary on each of these outlines our programmes, activities undertaken within the programmes and key observations associated with those activities. Details: World Customs Organization, 2013. 135p. Source: Internet Resource: Accessed August 19, 2013 at: http://www.cites.org/fb/2013/wco_illicit_trade_report_2012.pdf Year: 2013 Country: International URL: http://www.cites.org/fb/2013/wco_illicit_trade_report_2012.pdf Shelf Number: 129664 Keywords: Alcohol SmugglingCommercial FraudDrug SmugglingIllicit Trade (International)Tobacco SmugglingTrafficking in Cultural GoodsWildlife Crime |
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: Alemika, Etannibi E.O. Title: The Impact of Organised Crime on Governance in West Africa Summary: There are several types of organised criminal activities and operatives in West Africa. These activities include drug trafficking, advanced fee and internet fraud, human trafficking, diamond smuggling, forgery, cigarette smuggling, money-laundering, arms manufacture, arms trafficking, and armed robbery as well as oil bunkering . Transnational organised criminal activities often involve collaboration among domestic and foreign criminal groups. Organised criminal groups infiltrate governments, businesses, political and economic systems. They undermine the effectiveness of these systems, sometimes through corruption and violence. It is imperative that enough effort is given to the understanding of the impact of organised crime on governance in West Africa. Aim and scope of study In this study, the following issues are addressed: - Variety and trends of organised crime in West Africa; - Impact of organised crime on peace, stability, development and the rule of law; - Transnational linkages of organised crime; and - Linkages between state institutions/politics and organised crime. The focus of the study is different from the prevalent approach to the subject and reports on organised crime in West Africa, which have been more concerned with drug trafficking, human trafficking and scams directed at European and North American countries. Inadequate attention has been paid to other forms of organised crime. More significantly, there has been a lack of attention to the impact of organized crime on the fragile political, economic and social systems of the region. The responses by international, regional and national actors involved in developing and implementing measures against organised crime emphasise developing the capacity of law enforcement and judicial officials to enable effective interdiction and enforce the law. However, experience over the past two decades in many parts of the world indicates that reliance on law enforcement alone may not be an effective and sustainable enough approach. A broader understanding of actors, modes of operation, networks, of the nexus between organised crime and political systems, and the impact of organised criminal activities and actors on the economies and societies of West African countries is a prerequisite for developing a comprehensive and effective response to the activities of criminal networks. Details: Abuji, Nigeria: Friedrich-Ebert-Stiftung, Regional Office Abuja, 2013. 106p. Source: Internet Resource: Accessed September 12, 2014 at: http://library.fes.de/pdf-files/bueros/nigeria/10199.pdf Year: 2013 Country: Africa URL: http://library.fes.de/pdf-files/bueros/nigeria/10199.pdf Shelf Number: 133292 Keywords: Criminal NetworksDrug TraffickingHuman traffickingMoney LaunderingOrganized Crime (West Africa)SmugglingTobacco SmugglingTrafficking in Weapons |
Author: de Lacy, Elen Title: Predictors of tobacco smuggling in the South Wales Valleys Summary: In the space of one week in November 2008, Welsh Trading Standards officers in twelve South East Wales authorities conducted authenticity checks on over 54,000 packs of cigarettes and hand rolling tobacco. As a result of this work, over 45,000 cigarettes and 144kg of hand rolling tobacco were seized. There are different types of illicit trade in tobacco products. These include large scale smuggling, bootlegging and counterfeit smuggling. Not all smuggling involves counterfeit products. Smuggled products may also be UK manufactured tobacco products that have been diverted to the black market. Definitions - Smuggling is the illegal transport and distribution of tobacco products, usually without payment of correct government taxes. Smuggling can be large scale or small bootlegging operations. - Counterfeiting is the illegal production of "fake" brand cigarettes without the consent of the brand owner. Cheap and illicit tobacco undermines price (tax) and other tobacco control measures such as age of sale regulations. The criminal activities of smuggling, and increasingly, counterfeiting, lead to the availability of tobacco at less than half the tax-paid price in many deprived areas. This maintains smokers in their addiction and encourages young people to start smoking. It is estimated that 11.6% of all internationally traded cigarettes are smuggled, equivalent to 657 billion cigarettes a year, causing losses to government revenue worldwide of US$40.5 billion. In the UK by the late 1990s, cigarette smuggling had reached epidemic proportions. The tobacco industry estimated that 25%-30% of the total market was made up of illegally imported cigarettes15 although Customs & Excise estimated the figure to be no more than 21%16. Tobacco smuggling was costing the Government more than L3 billion a year in lost revenue. Cutting tobacco tax cannot solve the problem of smuggling. Even if all countries levelled exactly the same level of taxes and had identical prices, smuggling would still continue at a large scale. The total illicit cigarette market in high income countries is 9.8% compared to 16.8% in low income countries. It has been estimated that if the global illicit trade were eliminated, governments would gain at least $31 billion, and from 2030 onwards would save over 160,000 lives a year. Details: Cardiff: ASH Wales, 2011. 17p. Source: Internet Resource: Accessed November 25, 2014 at: http://www.ashwales.org.uk/creo_files/upload/default/report_of_predictors_of_smuggling_in_the_south_wales_valleys.pdf Year: 2011 Country: United Kingdom URL: http://www.ashwales.org.uk/creo_files/upload/default/report_of_predictors_of_smuggling_in_the_south_wales_valleys.pdf Shelf Number: 134237 Keywords: Cigarette Smuggling (U.K.)Illicit CigarettesTax EvasionTobacco Smuggling |
Author: INTERPOL. Office of Legal Affairs Title: Countering Illicit Trade in Tobacco Products: A Guide for Policy-Makers Summary: Illicit trade in tobacco products (ITTP) is a global occurrence, affecting all regions and countries. It holds an allure for criminals to engage in it as tobacco products are light, small, easy to transport and to conceal. Tobacco is one of the most smuggled commodities in the world, allowing offenders to amass huge profits. Further, penalties are often not sufficient to act as a deterrent. Illicit trade in tobacco products has negative and harmful consequences for countries at many levels. It affects consumers' health, reduces States' budgets, creates unfair competition for legitimate businesses, and feeds organized criminal groups who channel the profits obtained into other illegal activities. This handbook aims to offer the first comprehensive legal analysis of the international legal framework against the ITTP. It provides guidance to policy-makers and law enforcement authorities on the implementation of key international instruments in the field, with an emphasis on the new Protocol to Eliminate Illicit Trade in Tobacco Products. The ITTP holds many challenges for governments. One of the biggest is the involvement of organized criminal networks which employ increasingly sophisticated and varied methods to counterfeit and smuggle products. INTERPOL recognizes this as a growing issue threatening the security of States. A joint and coordinated effort is needed to find and implement lasting solutions to this multi-faceted problem. Details: Lyon, France: INTERPOL Office of Legal Affairs, 2014. 290p. Source: Internet Resource: Legal handbook Series: Accessed February 26, 2016 at: http://www.interpol.int/Crime-areas/Trafficking-in-illicit-goods-and-counterfeiting/Legal-assistance/Legal-publications Year: 2014 Country: International URL: http://www.interpol.int/Crime-areas/Trafficking-in-illicit-goods-and-counterfeiting/Legal-assistance/Legal-publications Shelf Number: 137982 Keywords: Counterfeit GoodsIllicit GoodsIllicit TradeOrganized CrimeSmuggled GoodsTobaccoTobacco Smuggling |
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: 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: 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: Ahsan, Abdillah Title: Illicit Cigarettes in Indonesia Summary: Illicit tobacco trade in Indonesia consists of illegal domestically produced cigarettes as well as cigarettes smuggled from abroad. This is recognised as an increasing problem that has not been quantifi ed. Methods Two methods were used to estimate Indonesia's illicit cigarette trade in terms of both volume and revenue loss. Method 1 estimates illicit trade as the discrepancy between, domestic consumption minus legal sales of cigarettes. Method 2 estimates illicit imports as the differences between exports to, and offi cial imports into Indonesia. Data The period of analysis is 1995-2006 using data from the Indonesian Central Board and Statistics and Excise and Customs, and US Department of Agriculture. Results Estimates from method 1 suggest illicit trade from illegal domestic cigarette production and net smuggling out of Indonesia, amounted to 43 billion sticks in 1995, falling to 10 billion by 2001. During 2002-2004 increased illegal domestic production of cigarettes together with possibly some net smuggling in, amounted to 23-31 billion sticks per year or 10-14% of total cigarette consumption. The resultant loss of government revenue ranged from Rp 2.7 Trillion to Rp 3.5 trillion (US$ 327-409 million) for 2002-2004, or between 9% and 13% of total tobacco excise revenue. There were considerable trade discrepancies between the values of imports and exports of cigarettes as reported by Indonesia and by the origin or destination countries. However offi cial imports into Indonesia are low, and to the extent that their difference from exports to Indonesia are an indication of smuggling into the country, they represented only Rp270 to Rp 350 million or some 0.001% of total cigarette revenue. Conclusion The large part of illicit cigarette trade in Indonesia appears to be from illicit domestic production. In order to reduce both illegal cigarette production and smuggling, the government should increase resources to enforce the laws concerning the excise system and impose stronger penalties, especially as related to illicit cigarette production,. Under Article 15 of the Framework Convention for Tobacco Control (FCTC)1, all governments ratifying the FCTC are required to address smuggling by collecting data about cross border trade in tobacco products; enacting or strengthening legislation against illicit trade in tobacco; destroying counterfeit and contraband tobacco; adopting and implementing measures to monitor and control the distribution of tobacco products; and adopting measures to enable the confi scation of proceeds derived from smuggling. Illicit cigarette trade includes smuggled cigarettes and illegal domestic production. It has been suggested by the Indonesian Ministry of Health that smuggling is around 5% of the domestic sales2. This relatively low estimate refl ects the Indonesian preference for kreteks above white cigarettes, which predominate in the illicit cigarette trade, and makes smuggling into Indonesia unprofi table. Some 90% of Indonesian smokers smoke kretek, a tobacco and clove cigarette produced almost exclusively in Indonesia, often illegally. The low price of kreteks may have led to Indonesia being an exporter of smuggled cigarettes, especially to the main destination countries of Indonesian migrant workers including Malaysia, Hong Kong, Taiwan, Korea, and the Middle East. Bootlegging is unlikely as Indonesia's tobacco tax rate is low compared to neighboring countries except Cambodia. Smuggling white (tobacco only) cigarettes into Indonesia has been identifi ed as potentially profi table; a BAT-commissioned study reported a preference among Indonesian consumers for contraband versions of international brand cigarettes3 (ref). Currently this is relatively low in Indonesia for the reasons given above. Illicit cigarette trade undermines tobacco control policies by lowering price and encouraging consumption particularly by the young and poor4 and denies governments excise revenue. Indonesia’s complicated tobacco excise tax system creates incentives for smokers to ‘trade down’ to cheaper illicit cigarettes, and in Indonesia illicit trade is recognised also as an obstacle to fairly sharing tobacco excise revenue (Damiri, 2008). This study aims to estimate the magnitude of the illicit trade and associated revenue losses, and so to provide the government with the rationale to improve law enforcement Details: Bangkok: Southeast Asia Tobacco Control Alliance, 2011. 12p. Source: Internet Resource: Accessed February 7, 2017 at: http://seatca.org/dmdocuments/Illicit%20cigarettes%20Indonesia%20July%202011.pdf Year: 2011 Country: Indonesia URL: http://seatca.org/dmdocuments/Illicit%20cigarettes%20Indonesia%20July%202011.pdf Shelf Number: 140846 Keywords: Cigarette Smuggling Illegal Tobacco Illicit Tobacco Illicit Trade Tobacco Industry Tobacco Smuggling |
Author: U.S. Government Accountability Office Title: Tobacco Trade: Duty-Free Cigarettes Sold in Unlimited Quantities on the U.S.-Mexico Border Pose Customs Challenges Summary: Since the 1970s, U.S. agencies have recognized that high-volume cigarette sales at duty-free stores near the U.S.- Mexico land border, although lawful, could be related to illicit activity. In 1988, U.S. law limited the quantity of duty-free tobacco products an individual can purchase at stores located in airports, restricting the sale of tobacco products to quantities consistent with personal use. This requirement, however, does not apply to land border duty-free stores. GAO was asked to review information on sales of cigarettes at duty-free stores along the southwest border. CBP identified 88 such stores and warehouses. This report describes (1) requirements that govern the lawful sale and export of cigarettes from duty-free stores on the southwest border and schemes for illicit trade in such cigarettes, (2) U.S. agency observations about these exports and efforts to counter illicit trade, (3) the extent to which selected cigarette transaction data submitted by duty-free stores indicate compliance issues. GAO analyzed Census data on these exports; reviewed CBP, ICE, and Department of the Treasury documents; and interviewed agency officials in Washington, D.C., and in several ports along the southwest border, including Laredo, Texas, and the San Diego, California, area. What GAO Recommends CBP should take steps to strengthen compliance with export reporting requirements for duty-free cigarette sales on the southwest border, such as issuing guidance to all duty-free store operators. DHS agreed and noted CBP plans to address the recommendation. Details: Washington, DC: GAO, 2017. 54p. Source: Internet Resource: GAO-18-21: Accessed November 15, 2017 at: https://www.gao.gov/assets/690/687679.pdf Year: 2017 Country: United States URL: https://www.gao.gov/assets/690/687679.pdf Shelf Number: 148194 Keywords: Cigarettes Illegal Goods Illicit Trade Tobacco Tobacco Smuggling |