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Category: Illicit Trade

  • South Australia Closes 100 Stores for Selling Illicit Tobacco, Vapes

    South Australia Closes 100 Stores for Selling Illicit Tobacco, Vapes

    Since June 5, South Australia has issued 100 28-day closure orders to stores selling illicit tobacco and vapes, seizing products valued at approximately A$50 million ($32.5 million), including 41 million cigarettes, 140,000 vapes, and 13,585 kg of loose tobacco. The closures are part of a state-led crackdown, supported by a A$16 million ($10.4 million) illicit tobacco taskforce targeting both metropolitan and regional outlets. Two long-term closures have already been issued, with five more pending in the Magistrates Court.

    The Malinauskas Government emphasized that the crackdown disrupts organized crime networks and enforces penalties of up to A$6.6 million ($4.3 million) for large-scale illicit sales, while landlords knowingly allowing such sales can face fines up to A$50,000 ($32,500).

  • UK Crackdown Seizes Millions in Illegal Cigarettes, Tobacco, and Vapes

    UK Crackdown Seizes Millions in Illegal Cigarettes, Tobacco, and Vapes

    More than 4.5 million illegal cigarettes, 600kg of illicit tobacco, and 111,000 illegal vapes have been seized in a nationwide crackdown on criminal activity across UK high streets, officials said. The month-long Operation Machinize 2, led by the National Crime Agency (NCA) with police forces, HMRC, and Trading Standards, targeted businesses being used as fronts for money laundering and illicit sales. Authorities raided 2,734 premises, made 924 arrests, and seized £10.7 million in suspected criminal proceeds.

    Officials said the operation disrupted organized crime networks exploiting small shops for tax evasion and the sale of counterfeit goods. The NCA estimated the haul represents £3.4 million in unpaid duty, while counterfeit and harmful products worth £2.7 million were destroyed.

    Security Minister Dan Jarvis said the coordinated effort was part of a broader drive to “dismantle criminal networks and protect honest business owners,” while NCA officials hailed the operation as a “new standard” in joint enforcement.

    The first phase of Operation Machinize in April yielded far smaller seizures, highlighting the growing scale of illicit trade on UK high streets.

  • Weak Enforcement, Not High Taxes, Lead to Illicit Trade: Philippine Study

    Weak Enforcement, Not High Taxes, Lead to Illicit Trade: Philippine Study

    The Action for Economic Reforms (AER) and Philippine government officials oppose bills seeking to cut tobacco excise taxes, warning the move could increase smoking rates and reduce government revenues without addressing illicit trade. A joint study by AER and Johns Hopkins Bloomberg School of Public Health argues that high tobacco taxes do not drive illicit trade, but it is instead a product of weak enforcement and local governance.

    AER projects up to two million new smokers by 2035 and P167 billion ($2.8 billion) in lost revenue if taxes are lowered. Officials, including Senator Risa Hontiveros-Baraquel and BIR Commissioner Romeo Lumagui, stressed that stronger enforcement, a nationwide licensing system, and an upgraded track-and-trace program are key to curbing illicit tobacco sales and protecting public health.

  • Netherlands Increases Fines for Illegal Vape and Cigarette Sales

    Netherlands Increases Fines for Illegal Vape and Cigarette Sales

    The outgoing Dutch government plans to sharply increase fines for the illegal sale of vapes and cigarettes starting July 1, 2026, pending parliamentary approval, Dutch News reported today. Under the proposal, first-time offenders will face a €2,040 fine, rising to €3,060 for a second offence. Large companies with over 50 employees could be fined €4,040.

    Caretaker Health Minister Judith Tielen said the move sends a strong warning: “Selling illegal vapes will cost you dearly, even for a first offence.” Illegal vape and cigarette sales remain widespread in the Netherlands, particularly online and in small shops, despite bans on sales to minors and flavored vapes

  • ASEAN Could Lose $11B to Illicit Tobacco Trade by 2028

    ASEAN Could Lose $11B to Illicit Tobacco Trade by 2028

    A policy brief by the Center for Market Education (CME) warns that Southeast Asian governments may lose more than $11 billion to illicit tobacco trade by 2028, averaging $3.7 billion annually.

    Key national losses include:

    • Malaysia: $770 million/year, nearly matching projected petrol subsidy savings.
    • Philippines: $440 million/year, exceeding its $370 million disaster preparedness fund.
    • Thailand: $560 million/year, with illicit products making up 28% of the market.
    • Indonesia: $5 billion lost across three years, with illicit trade above 10% of the market.

    CME notes these figures are conservative due to underreporting and uneven enforcement. CEO Dr. Carmelo Ferlito called for stronger cross-border collaboration, policy alignment, and transparency to reclaim lost revenue. Hayley van Loon, CEO of Crime Stoppers International, highlighted the link between illicit tobacco and organized crime, including narcotics, human trafficking, and counterfeit goods.

  • Illegal Tobacco Costs Australia Billions, Fuels Crime

    Illegal Tobacco Costs Australia Billions, Fuels Crime

    Australia’s illegal tobacco market has cost the government A$3.3 billion ($2.1 billion) in excise revenue, with organized crime controlling much of the trade, the Australian Criminal Intelligence Commission (ACIC) said in a report today (November 6). About one in five cigarettes sold is illicit, as high legal prices push consumers to cheaper alternatives, it said.

    The broader impact, including healthcare and productivity losses, totals A$4 billion ($2.6 billion) annually, with at least three deaths and 200 firebombings linked to “tobacco wars.” The ACIC said the A$4 billion estimate was “almost certainly an underestimate,” as it did not include e-cigarettes and illegal vapes.

    New South Wales Premier Chris Minns called for a federal review of excise rates, while Treasurer Jim Chalmers rejected lowering prices. Illicit tobacco is part of a growing A$82.3 billion ($53.5 billion) organized crime burden, alongside illegal vapes, according to the report.

  • Philippines Busts Illegal Cigarette Factory, Rescues 11 Workers

    Philippines Busts Illegal Cigarette Factory, Rescues 11 Workers

    Authorities in the Philippines raided an alleged illegal cigarette factory in Trece Martires City, arresting two individuals and “rescuing” 11 workers, including a 17-year-old, the Philippine National Police (PNP) said. The operation targeted a facility operating out of a supposed leisure park. The suspects allegedly recruited workers from poor communities in the Visayas and Mindanao to produce counterfeit cigarettes under “questionable working conditions.”

    The rescued workers are reportedly being investigated for labor law violations, while the arrested individuals were taken to the police station for documentation. The PNP emphasized its commitment to dismantling trafficking networks and ensuring safe, dignified employment, in line with broader government efforts.

  • Indonesia Incentivizing Illegal Cigarette Makers to Go Legit

    Indonesia Incentivizing Illegal Cigarette Makers to Go Legit

    Indonesian Finance Minister Purbaya Yudhi Sadewa announced plans to implement a special tax aimed at curbing the circulation of illegal cigarettes, particularly from China and Vietnam, and supporting domestic legal producers. The policy will include the establishment of a Tobacco Industry Zone to encourage illegal domestic producers to legalize operations under certain tariffs, and potentially be operational by December 2025.

    Purbaya acknowledged that high cigarette taxes inadvertently fueled the black market, so that while tax revenue decreased, smoking prevalence—and the health problems associated with it—remained unchanged. 

    “If that’s the case, then what is the policy for?” said Purbaya. “We are killing the domestic legal cigarette industry, but reviving illegal cigarettes from abroad. In that case, I lose. I don’t want to lose.”

    The government will offer assistance to small illegal producers to help them enter the legal market while maintaining strict enforcement against those who continue illicit operations. Purbaya stressed that the approach balances enforcement with opportunities for legalization, ensuring domestic producers are protected while creating a more transparent and regulated cigarette market.

  • NZ Faces Rising Illicit Tobacco Trade

    NZ Faces Rising Illicit Tobacco Trade

    More than one in four cigarettes consumed in New Zealand came from the illicit market last year, according to a new independent report commissioned by Imperial Brands and BAT New Zealand. The study found that 27% of total tobacco consumption was illegal, up from 23.6% the previous year, resulting in lost excise revenue estimated at over NZ$600 million ($348 million). The rise is largely driven by a 41.9% increase in smuggled, contraband cigarettes.

    Industry representatives warned that without decisive intervention, New Zealand risks facing the same challenges seen in Australia, where delayed responses allowed illicit trade to flourish post-COVID. “The report shows New Zealand’s illicit tobacco trade continues to escalate,” said an Imperial Brands spokesperson. “It would be a mistake to assume the violence and criminal networks associated with an uncontrolled illicit market couldn’t happen here.”

    BAT New Zealand echoed the call for immediate action, highlighting the importance of proactive measures. “Australia presents a cautionary tale of how quickly illicit tobacco can take hold,” a BATNZ spokesperson said. “New Zealand has the opportunity to act now to prevent the exponential growth of illegal tobacco and protect both public health and government revenue.”

    Read the full report here.

  • Australia Sees Record Surge in Illegal Tobacco and Vape Seizures

    Australia Sees Record Surge in Illegal Tobacco and Vape Seizures

    Australia’s border authorities have reported a sharp rise in the interception of illegal tobacco and vapes, with the Australian Border Force (ABF) seizing 586 million cigarettes and more than 3 million vapes between July and September, the highest quarterly total in recent years. Officials say the spike reflects both growing criminal activity and enhanced border intelligence.

    ABF Illicit Tobacco and Vape Enforcement Commander Greg Dowse said the results highlight how syndicates are becoming more sophisticated, but “not beyond the reach of border intelligence.” He credited the agency’s success to stronger cooperation with international partners, enabling authorities to identify high-risk shipments before arrival.

    Major seizures were reported nationwide, including two tons of undeclared tobacco in Queensland, over 4 million cigarettes in Western Australia, and 95,000 vapes hidden in a Port Botany shipment. Dowse said continued collaboration and intelligence sharing remain crucial to preventing illicit tobacco and vape products from reaching Australian consumers.