JTI Calls for ASEAN Action on Illicit Tobacco Trade

Japan Tobacco International’s Philippine unit is calling on ASEAN governments to harmonize export controls and destination-market requirements after illicit tobacco trade was estimated to have cost the region $13.1 billion in revenue over the past two years. JTI Philippines Fiscal and Regulatory Affairs Director Mario Zinampan said illicit trade has become a regional issue requiring coordinated action rather than country-by-country measures.

JTI is proposing an ASEAN declaration on harmonizing rules for high-risk and sensitive goods, covering export integrity, customs cooperation, interoperable track-and-trace systems and intelligence sharing. The company also wants ASEAN countries to strengthen proof-of-export and verification requirements and apply destination-country regulations consistently to reduce smuggling, misdeclaration, undervaluation, counterfeiting and diversion.

Zinampan said inconsistent export requirements across ASEAN create regulatory gaps that illicit traders can exploit. He called for a common “destination principle” requiring products exported within the region to comply with the laws of their destination market, arguing that stronger coordination would help close loopholes and improve cross-border enforcement.