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Category: Illicit Trade

  • Surging Illicit Tobacco Market Costs Thailand $930M

    Surging Illicit Tobacco Market Costs Thailand $930M

    Thailand is losing nearly 30 billion baht ($930 million) annually to the illegal tobacco market, which now accounts for about 25% of total tobacco consumption in the country, according to a report by the EU-ASEAN Business Council. The surge in illicit trade, driven by expanded trade links and smuggling networks, is undermining state tax revenue, fair competition, and consumer safety. The government has responded with high-profile enforcement actions, including a recent operation in southern Thailand that seized over 20 million illegal tobacco items and levied fines exceeding 1 billion baht ($31 million).

    While crackdowns provide short-term relief, experts stress that a long-term solution requires system-wide measures, including strengthened supply-chain transparency, harmonized regulations, digital traceability, and regional law enforcement cooperation, to disrupt the entire illegal tobacco network.

  • Philippine Farmers Hail Illicit Tobacco Crackdown

    Philippine Farmers Hail Illicit Tobacco Crackdown

    Farmers in the Philippines and local business groups welcomed the government’s intensified crackdown on illicit tobacco manufacturing and smuggling, following a series of enforcement operations. Organizations, including the Federation of Free Farmers, Federation of Philippine Industries, and the British Chamber of Commerce of the Philippines said recent raids and factory shutdowns send a strong signal that authorities are serious about protecting legitimate businesses, government revenues, and farmers’ livelihoods. The comments followed law enforcement actions that uncovered several abandoned illegal cigarette factories in Pampanga and seized equipment and materials valued at about ₱400 million ($6.8 million).

    Officials said the illegal facilities were capable of producing cigarettes worth up to ₱160 million per day. Authorities estimate that illegal cigarette production and smuggling cost the Philippine government around ₱30 billion ($510 million) in lost excise taxes in 2025 alone. Department of the Interior Secretary Jonvic Remulla warned that some illicit operations may have political or institutional backers, while enforcement agencies continue investigations to identify financiers and operators behind the networks.

  • South Korean Ring Smuggling to ‘High-Priced’ Markets

    South Korean Ring Smuggling to ‘High-Priced’ Markets

    Authorities in South Korea referred 11 people to prosecutors after uncovering a smuggling ring that shipped 900,000 packs of genuine and counterfeit cigarettes to high-price markets, including Australia and New Zealand. According to Incheon Regional Customs, the group exploited price gaps between countries, buying cigarettes domestically for around 4,500 won ($3.06) per pack and reselling them abroad, where prices can exceed 41,000 won ($27.88). The operation allegedly generated about ₩1 billion ($680,000) in profit from more than 70 shipments between March 2024 and March 2025. Investigators say the ring recruited convenience store owners to source legitimate cigarettes and also purchased large quantities of counterfeit products through illegal channels, disguising shipments as items such as rubber mats before sending them overseas by courier.

  • Philippines Seizes $4M in Undeclared Cigarettes

    Philippines Seizes $4M in Undeclared Cigarettes

    Philippine authorities have seized 637 cases of undeclared cigarettes valued at about P235 million ($4 million) at the Port of Batangas, according to the Bureau of Customs. The shipment, which arrived aboard a vessel from the United Arab Emirates, reportedly contained MAC-branded cigarettes but was not listed in the bill of lading, inward foreign manifest, or discharge list, prompting a non-intrusive inspection and subsequent physical examination.

    Officials said the cigarettes were not supported by proper import documents and that the listed consignee was not authorized to import tobacco products, suggesting an attempt to smuggle regulated goods into the country. The case is being investigated under the provisions of the Customs Modernization and Tariff Act.

  • Ireland Seizes €8.5 Million Worth of Illegal Cigarettes

    Ireland Seizes €8.5 Million Worth of Illegal Cigarettes

    Irish authorities seized about 9 million illegal cigarettes at Dublin Port during an inspection of a container arriving from Rotterdam. Officers from Revenue Irish Tax and Customs discovered the cigarettes, branded “Richmond,” concealed in a shipment declared as food after conducting routine risk profiling, assisted by a detector dog and a mobile X-ray scanner.

    The cigarettes have an estimated retail value of more than €8.5 million and represent a potential loss to the Irish Exchequer of over €6.6 million in unpaid taxes. Authorities said the seizure forms part of ongoing efforts to combat the illegal tobacco trade and the wider shadow economy, with investigations continuing.

  • Bulgarians Seize 6M Cigarettes in Produce Truck

    Bulgarians Seize 6M Cigarettes in Produce Truck

    Bulgarian customs authorities seized more than 6.1 million smuggled cigarettes hidden in a refrigerated truck carrying citrus and vegetables from Greece to Poland. The shipment, consisting of three popular brands without Bulgarian excise stamps, had a market value of about €1.15 million, with unpaid excise duties totaling €691,560. The Ukrainian driver was arrested, and an investigation is ongoing.

  • Irish Authorities Seize 9M Cigarettes on Ferry

    Irish Authorities Seize 9M Cigarettes on Ferry

    Irish authorities seized 9 million smuggled cigarettes at Rosslare Europort in Co. Wexford this week following a routine Revenue search. The haul, from a truck and trailer arriving on a ferry from Dunkerque, France, consisted of Richmond King Size cigarettes with an estimated value of over €8 million, representing a potential loss of more than €6.4 million to the Irish exchequer. A man in his 40s was questioned in connection with the seizure, and investigations are ongoing.

  • UK’s Black Market Booming as Legal Smokes Down 52%: Report

    UK’s Black Market Booming as Legal Smokes Down 52%: Report

    Sales of legal tobacco in the United Kingdom have dropped by 52% since 2021, according to new data from HMRC, however, smoking prevalence and consumption per smoker have remained relatively stable, indicating a sharp rise in the illicit cigarette trade. Reports show manufactured cigarette volumes fell 46% from 23.4 billion to 12.6 billion sticks, while rolling tobacco declined 59% from 8.6 million kilograms to 3.6 million kilograms. When converted into cigarette equivalents, just 19.8 billion sticks were sold legally in 2025, less than half the 40.6 billion sold in 2021.

    With excise duty on cigarettes and rolling tobacco rising 73% and 115%, respectively, since 2020, resulting tobacco duty revenues have fallen from £10.4 billion to £7.9 billion, the lowest on record after adjusting for inflation, highlighting the rapid expansion of the black market. Dr Christopher Snowdon, head of lifestyle economics at the Institute of Economic Affairs, said the figures provide “conclusive proof” that illicit tobacco is proliferating, noting that the growth of the black market is evident to smokers and the general public alike. The analysis underscores concerns that high taxes, while intended to curb smoking, have inadvertently fueled illegal sales, presenting a major challenge for regulators and law enforcement.

  • Philippines Losing $425M to Illicits

    Philippines Losing $425M to Illicits

    The Philippines is losing an estimated P25 billion ($425 million) annually in cigarette excise taxes due to the illicit tobacco trade, according to a policy brief by the Center for Market Education (CME). The report, which compares seven ASEAN economies, found that smuggled cigarettes account for about 16% of the domestic market, with some estimates reaching as high as 21%. CME CEO Carmelito Ferlito said the foregone revenue represents a significant missed opportunity to fund public services.

    The brief noted that the lost money is equivalent to 12.5% of the national health budget and 3.6% of the education budget, funds that could otherwise support hospitals, schools, and climate programs. While tobacco excise collections surged after major reforms in 2012, revenues peaked in 2021 and have declined since, raising concerns that rates may have exceeded the revenue-maximizing point on the Laffer Curve. CME urged policymakers to align tax policy with stronger enforcement, stressing that taxation is effective only when compliance is enforceable and credible.

  • Malaysian Illicit Cigarette Rate Still Above 54%

    Malaysian Illicit Cigarette Rate Still Above 54%

    The Confederation of Malaysian Tobacco Manufacturers (CMTM) said the latest Illicit Cigarettes Study conducted by NielsenIQ shows illicit cigarette incidence in Malaysia remains high at 54.4% in 2025, a marginal 0.6%-point decline from 2024. CMTM credited enforcement agencies, including the Royal Malaysian Customs Department and the Royal Malaysian Police (PDRM), for intensified border controls and supply chain disruption efforts.

    However, the association flagged rising concern over cigarettes bearing fake tax stamps (FTS), with national incidence increasing by 1.7 percentage points year-on-year and wider penetration reported in Johor, Penang, Melaka, Terengganu and Kelantan. The group urged stronger action to remove such products from the market and reaffirmed its commitment to working with authorities to protect regulatory integrity as illicit trade tactics evolve.