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Category: Illicit Trade

  • Italy Discovers One of Europe’s Largest Illegal Cigarette Factories

    Italy Discovers One of Europe’s Largest Illegal Cigarette Factories

    On July 22, 2025, Italian authorities supported by the European Public Prosecutor’s Office (EPPO) dismantled a clandestine cigarette manufacturing facility near Stornara in Apulia. The site had the capacity to produce up to 2 million cigarettes daily and was estimated to be worth over €1.3 million.

    The operation included coordination across Apulia and Sicily, targeting a broader smuggling network. Logistics chains, packaging systems counterfeit samples, and ready-to-ship finished product were seized. The scale and structure indicate a well-developed organized supply network bypassing regulated markets.

  • Switzerland Sees Surge in Illicit Cigarettes

    Switzerland Sees Surge in Illicit Cigarettes

    Recent data show Switzerland experienced a roughly 50% increase in illicit cigarette imports between 2020 and 2024, with approximately 300 million contraband cigarettes entering the market in 2024, which is equivalent to about 3.5% of national consumption. Kosovo has been identified as the leading source, supplying a significant portion of the smuggled products. The financial impact is estimated in the tens of millions of francs in tax losses.

    Independent assessments of European tobacco trade note that many illicit cigarettes have no identifiable brand origin. However, statistical analyses consistently point to a concentration of smuggling through a small number of transit corridors, particularly routes from Kosovo into Swiss territory via air or cross-border land transport.

  • Hong Kong Crackdown Targets Maritime Cigarette Smuggling

    Hong Kong Crackdown Targets Maritime Cigarette Smuggling

    Hong Kong customs and marine police executed two coordinated anti-smuggling operations on July 27, 2025, intercepting around 2.85 million cigarettes valued at approximately HK$13 million ($1.6mn). The seizures occurred off Stanley and in the New Territories; suspects evaded capture by fleeing aboard speedboats, underscoring the use of maritime smuggling routes to feed the city’s illicit cigarette market.

    These operations reflect ongoing escalation in illicit tobacco enforcement, as authorities increasingly target organized smuggling networks exploiting sea routes. While recent interceptions have focused on higher-volume seizures, arrests remain elusive—highlighting enforcement’s challenges in making arrests even when supply chains are disrupted.

    This incident provides further context to Hong Kong’s broader anti-tobacco strategy. The government has set a target of reducing adult smoking prevalence to 7.8% from approximately 9.1% in 2023, supported by measures such as banning flavored cigarettes, expanding smoke-free zones, increasing taxation, and raising penalties for duty evasion. Illicit trade is universally identified as a threat to both health objectives and tax revenue.

  • Indonesian Illegal Cigarettes Fueled by Unregulated Rolling Machines

    Indonesian Illegal Cigarettes Fueled by Unregulated Rolling Machines

    The Directorate General of Customs and Excise in Jakarta, Indonesia, raised alarms over the growing presence of illegal cigarettes in the market, citing the unrestricted access to tobacco rolling machines as a key driver behind their mass production. Director of Communication and Compliance Guidance Nirwala Dwi Heryanto said that machines like the MK-8, which is capable of producing up to 2,800 sticks per minute, can be purchased for Rp5 billion ($305,000), and are widely available without regulatory oversight.

    Authorities are urging policy intervention to control machine distribution, tighten import regulations, and close loopholes allowing unlicensed manufacturing. Mouhamad Bigwanto, Chair of the Indonesian Health Policy Room (Rukki), warned that as long as machine access remains unregulated, the illegal cigarette industry will flourish. “Because the rolling machines can still be imported and purchased without a license, I think that is concerning,” he said.

  • Singapore May Strengthen Laws as Drug-Laced Vapes Surge

    Singapore May Strengthen Laws as Drug-Laced Vapes Surge

    The Singapore government is considering tightening vaping laws in response to a sharp rise in cases of e-vaporizers containing controlled substances like etomidate, the Ministry of Health (MOH) and the Ministry of Home Affairs said. In the first half of 2025, 28 cases of e-vape pods containing etomidate — nearly three times the number found in all of 2024 — were detected, raising concerns about public health and drug misuse.

    Etomidate, a regulated anesthetic, has been found illegally in vape products designed for inhalation. The ministries warned of serious side effects, including muscle spasms, seizures, confusion, and potential physical dependence.

    Vaping has been banned in Singapore since 2018, with penalties of up to S$2,000 ($1,560) for use or possession, and up to S$10,000 ($7,800) or six months in jail for sellers and importers. Authorities are now reviewing whether existing legislation provides sufficient enforcement powers and are coordinating efforts across numerous agencies. Over S$41 million ($32 million) worth of illegal vapes were seized from January 2024 to March 2025.

  • Dutch Authorities Seize Record Illegal Flavored Vapes

    Dutch Authorities Seize Record Illegal Flavored Vapes

    Dutch product safety authority NVWA and customs officials confiscated 80,000 illegal vapes in a record seizure at a storage facility near Schiphol Airport, marking the country’s largest bust of its kind to date.

    The Chinese-made vapes, flavored with now-banned ingredients like watermelon and kiwi, violate the Netherlands’ 2024 ban on flavored vaping products. The total estimated market value is in the hundreds of thousands of euros, and officials believe the products were intended for domestic distribution.

    This marks the second major seizure from the same importer. In May, authorities intercepted 70,000 vape refills containing similar illegal flavorings. While no fines can be issued because the products were confiscated before reaching consumers, the importer must cover the cost of destroying the vapes, the NVWA confirmed.

    The bust comes amid a broader crackdown led by junior health minister Vincent Karremans, who in May launched an anti-vaping campaign targeting youth vaping, sales of illegal products, and health risks.

  • Bulgarian Police Seize $18M in Illegal Cigarettes at Factory Bust

    Bulgarian Police Seize $18M in Illegal Cigarettes at Factory Bust

    Bulgarian authorities dismantled the largest illegal cigarette factory ever discovered in the country, the Prosecutor’s Office announced today (July 10). According to an official statement, the clandestine facility was located beneath a cow farm near the village of Momkovo in the Haskovo region of southeastern Bulgaria. Authorities uncovered approximately 102.7 million cigarettes of various brands at the site.

    “The value of the seized cigarettes is estimated at over 30 million BGN ($18 million),” the statement said.

    In addition to the massive quantity of cigarettes, law enforcement also confiscated machinery and equipment used in their production. Two suspects have been detained so far, one of whom is the owner of the cow farm. Authorities are currently investigating the involvement of other individuals.

  • BAT Accuses Local Manufacturers of Fueling South African Illicit Cigarette Market

    BAT Accuses Local Manufacturers of Fueling South African Illicit Cigarette Market

    British American Tobacco South Africa (BATSA) accused local cigarette manufacturers of driving the country’s booming illicit tobacco trade, which it says is costing the state an estimated R28 billion ($1.6 billion) in lost annual tax revenue. The company’s regulatory head, Johny Moloto, said the crisis has shifted from a cross-border issue to a “homegrown problem,” with 76.7% of retail outlets selling cigarettes below the Minimum Collectable Tax price for a box of cigarettes, which “should sell for above R26.22 ($1.47) a pack after accounting for levies.”

    “We have repeatedly shown who the culprits are,” Moloto said. “If SARS [South African Revenue Service] and the police wanted to act, they could. Today.”

    A study, commissioned by BAT and independently conducted by Ipsos, revealed that 14 of the 23 manufacturers involved in the illicit trade are based in South Africa, accounting for 91% of the illegal market. Gold Leaf Tobacco Company was named as the most prevalent brand in these sales, with nearly 90% of its products selling below the legal threshold. BATSA had 1.5% of its products selling below the minimum.  

    Moloto urged SARS and police to act on existing intelligence and called for stricter enforcement, including SARS’ presence at manufacturing sites and a national minimum retail price to ease policing.

  • Men Jailed Over Failed Plot to Steal $5M in Seized Vapes

    Men Jailed Over Failed Plot to Steal $5M in Seized Vapes

    Lim Zhi Wei was sentenced to 27 months in jail and fined S$2,400 ($1,872) for his role in a failed plan to steal more than S$6.5 million ($5.1 million) worth of confiscated vape devices and related components from a secured warehouse in Singapore.

    Deputy Public Prosecutor Nicole Teo said Lim’s actions were part of a wider conspiracy involving multiple individuals attempting to retrieve the seized contraband. Lim pleaded guilty to obstructing justice, as well as several unrelated charges, including drug consumption, criminal breach of trust, and receiving S$10,000 ($7,800) in scam proceeds through his bank account.

    Lim was offered S$20,000 ($15,600) by alleged ringleader Chua Wee Ming to break into the unit, which contained over 540,000 vaping-related items previously seized from Chua’s alleged smuggling syndicate by the Health Sciences Authority (HSA). Lim brought along a 23-year-old accomplice, Elvin Suriaganandhan, and the two began surveilling the property on March 26, 2024, before being stopped by HSA officers.

    Lim’s sentencing follows that of Chee Wai Yuen, who was jailed last week for 15 months after attempting an earlier reconnaissance mission at the same warehouse.

    Chua recruited Chee in March 2023 to check if the unit was guarded, but Chee was intercepted by HSA officers. He was found with ketamine and methamphetamine, fled Singapore while on bail by hiding in a lorry, and was later arrested in Malaysia and extradited in October 2023.

    Chua, the central figure allegedly behind the smuggling ring and theft plan, remains in custody, his case pending.

  • Philippines Cracking Down on Illegal Cigarettes, Criminals

    Philippines Cracking Down on Illegal Cigarettes, Criminals

    The Bureau of Internal Revenue (BIR) in the Philippines filed tax evasion charges totaling nearly ₱797 million ($14.3 million) against individuals involved in the large-scale illegal cigarette trade, intensifying its crackdown on illicit tobacco and vape operations. BIR Commissioner Romeo Lumagui Jr. announced that the charges stemmed from two recent raids.

    In Valenzuela City, authorities seized 600 master cases of untaxed cigarettes from a warehouse, with estimated tax liabilities of ₱200.7 million ($3.6 million). The lessee of the facility now faces criminal charges.

    A separate raid in San Rafael, Bulacan, uncovered an illegal cigarette factory allegedly operated by a Chinese national. The BIR recovered 7,884 master cases of illicit cigarettes and manufacturing equipment, worth ₱596.2 million ($10.7 million). The suspect also faces human trafficking charges after 155 workers were rescued from the facility.

    In a third similar bust, the National Bureau of Investigation (NBI) and the Department of Trade and Industry (DTI) arrested five individuals in Sta. Cruz, Manila, for allegedly selling unregistered vape products online. More than 25,000 vape units worth ₱8.16 million ($147,000) were confiscated in the joint operation, following test-buy and surveillance efforts. The suspects face charges for violating trade and consumer protection laws.