‘Spike in Seizures Hints at Illegal Production’

A recent spike in loose tobacco seizures by authorities suggests there are “large-scale” illegal cigarette factories operating in Ireland, according to Retailers Against Smuggling (RAS).

To date, law enforcement has seized 13.5 tons of loose raw tobacco with a combined estimated retail value of €8.1 million ($9.57 million), representing a potential loss to the Exchequer of €6.7 million.

“The significant volume of the consignments being seized and the elaborate means being used to conceal this raw tobacco suggests that it’s unlikely the product is intended for direct resale to the consumer on the black market,” RAS national spokesperson Benny Gilsenan was quoted as saying by The Journal.  

Instead, such shipments are likely destined for illegal cigarette-making factories operated by criminal gangs in either the Republic of Ireland or Northern Ireland, he said.

Ireland’s first illegal commercial-scale cigarette production plant was uncovered in 2018. Authorities seized up to 66 tons of raw tobacco during that operation.

The 13.5 tons seized this year is sufficient to manufacture between 13 million and 15 million cigarettes.

In its pre-budget 2022 submission to Minister for Finance Paschal Donohoe, RAS argued that continuous excise increases on tobacco are fueling demand for a growing black market, urging against an increase in October’s announcement.

“The continued growth of the black market can only be halted by stopping the continuous excise increases on tobacco products, the retail price of which is 121 percent above the EU average, according to a new Eurostat survey issued today,” Gilsenan argued.