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Category: Illicit Trade

  • Concerns Loom Over S. Africa Tobacco Control Bill

    Concerns Loom Over S. Africa Tobacco Control Bill

    South Africa’s tobacco policy debate sharpened this week after Finance Minister Enoch Godongwana used his Budget speech to warn that illicit trade is inflicting serious damage on the economy, while hours later the Department of Health faced pointed pushback in Parliament over whether its Tobacco Products and Electronic Delivery Systems Control Bill adequately addresses that crisis. Appearing before the Portfolio Committee on Health, officials defended the Bill’s public health rationale, arguing it does not ban cigarettes and that smoking imposes greater economic costs than it generates. However, MPs from multiple parties pressed the Department on estimates that as much as 70% of the cigarette market may be illicit, questioning whether the proposed measures meaningfully target the dominant illegal segment.

    Lawmakers repeatedly raised concerns about enforcement capacity, proportionality, and the risk that additional regulatory burdens — such as plain packaging and stricter penalties — could further advantage criminal syndicates if illicit trade remains unchecked. The Department leaned on international precedent and South Africa’s obligations under the WHO Framework Convention on Tobacco Control, while some MPs called for greater differentiation between combustible and non-combustible products and more realistic alignment with local enforcement realities.

  • W. Australia Moves to Strengthen Penalties for Illicits

    W. Australia Moves to Strengthen Penalties for Illicits

    Australia’s Cook Government advanced priority amendments to the Tobacco Products Control Act 2006, with the Legislative Assembly passing the changes and the Legislative Council set to debate them next. The legislation introduces some of the toughest penalties in Australia for businesses caught selling illicit tobacco and vaping products, including fines of up to A$4.2 million ($3 million) for individuals and A$21 million ($14.9 million) for companies, alongside 15 years’ imprisonment. New provisions also allow for store closure orders of up to 90 days while investigations are conducted, giving compliance officers a direct enforcement mechanism to shut down illegal operations.

    Premier Roger Cook emphasized that the laws aim to protect Western Australians, eliminate criminal activity, and target dangerous trades, while Health Minister Meredith Hammat highlighted the role of the expanded Tobacco and Vape Compliance Unit, which recently uncovered nearly 100,000 illicit cigarettes and 37 kilograms of loose-leaf tobacco in regional operations.

  • Seven Arrested for Vape Trafficking in Cambodia

    Seven Arrested for Vape Trafficking in Cambodia

    Seven people were arrested and potentially face 20 years in prison in Cambodia for allegedly trafficking and possessing electronic cigarette products. Five suspects were apprehended in a raid on an electronic device distributor in Phnom Penh where more than 300,000 vaping items, including devices and e-liquids worth over $1 million, were seized. In a separate raid, a husband and wife were detained at a shop in Siem Reap where authorities confiscated 100 boxes of vaping paraphernalia. All the suspects face charges under Cambodia’s Law on Drugs Control.

  • Taiwan Fines Top $28M Since Vape Laws Changed

    Taiwan Fines Top $28M Since Vape Laws Changed

    Taiwan’s Health Promotion Administration said authorities have imposed NT$880 million ($28 million) in fines over the past three years for illegal e-cigarettes and unapproved heated tobacco products, following amendments to the Tobacco Hazards Prevention Act that took effect in March 2023. As of the end of January, officials had conducted more than 970,000 on-site and online inspections, issuing 10,084 penalties — 3,266 related to e-cigarettes and 6,818 to heated tobacco products — including 204 cases tied to online platforms and 2,033 involving illegal use. The agency reiterated that e-cigarettes remain illegal in Taiwan and warned of health risks.

  • Singapore Seizes 14,550 Cartons of Cigarettes

    Singapore Seizes 14,550 Cartons of Cigarettes

    Singapore Customs seized 14,550 cartons of duty-unpaid cigarettes concealed inside air cooler units during two enforcement operations in February, uncovering more than S$1.6 million ($1.3 million) in evaded duty and Goods and Services Tax. A 40-year-old Chinese national was arrested in connection with the case.

    Officers first intercepted the man on Feb. 7 after observing him leaving an industrial building, who led them to a unit where 7,306 cartons were found hidden in three air coolers. Follow-up investigations resulted in a second raid on Feb. 11 at an industrial building, where an additional 7,244 cartons were discovered concealed similarly. The man said an unknown individual engaged him to retrieve the cigarettes from the air coolers and prepare them for local distribution.

  • Hong Kong Police Seize 2.2M Smuggled Cigarettes

    Hong Kong Police Seize 2.2M Smuggled Cigarettes

    Hong Kong police and customs officers seized more than HK$10.2 million ($1.3 million) worth of suspected illicit cigarettes during a joint Lunar New Year marine operation on Feb. 21. Acting on suspicious activity in Sai Kung and Lantau Island, officers intercepted two unlit speedboats allegedly transferring contraband to shore, recovering over 2.2 million cigarettes with an estimated duty value of HK$7.4 million. Suspects fled toward mainland waters, while a truck linked to one case was impounded as the investigation continues.

  • Thai Smugglers Move to ‘Ant-Worker’ Tactics as Seizures Increase

    Thai Smugglers Move to ‘Ant-Worker’ Tactics as Seizures Increase

    The Thai Customs Department has intensified its crackdown on tax-evading goods, seizing more than 27.3 million foreign cigarettes and 205,445 e-cigarette units worth an estimated 169.6 million baht ($5.4 million) between October 2025 and mid-February 2026. Director-General Phanthong Loykulnunt said smuggling networks have shifted to “ant-worker” tactics, moving contraband in small parcels via private couriers and concealing goods in commercial lorries to evade checkpoints, prompting authorities to deploy handheld X-ray scanners nationwide. Major operations included a Central Thailand raid with Mae Klong Customs that uncovered 12.5 million cigarettes valued at 62 million baht ($2 million), seizures worth 36 million baht ($1.2 million) in Songkhla and Tak Bai, and a Bangkok raid in Khan Na Yao district that netted hybrid e-cigarettes and IQOS devices worth 10 million baht ($320,000). At Bangkok Port, Customs and the Department of Special Investigation inspected seven overdue containers, discovering over 46,000 disposable vapes hidden among legitimate cargo.

  • Indian Police Seize 2,700 kg of Illicit Tobacco Products

    Indian Police Seize 2,700 kg of Illicit Tobacco Products

    Police in India seized more than 2,700kg of banned tobacco products in Thirumudivakkam today (Feb. 18) following a tip-off about a Karnataka-registered truck allegedly transporting the contraband for local distribution. Officers traced the vehicle to the Thirumudivakkam industrial estate, where they found it parked alongside a smaller truck; suspects fled the scene as police approached. A search of the vehicles uncovered the banned tobacco products bundled and ready for transport. A case has been registered, and efforts are under way to identify and apprehend those involved in the smuggling operation.

  • Dutch Customs Seize 12.5M Illegal Cigarettes in Two Weeks

    Dutch Customs Seize 12.5M Illegal Cigarettes in Two Weeks

    Dutch investigators from the Fiscale Inlichtingen- en Opsporingsdienst seized 12.5 million illegal cigarettes in three separate operations over the past two weeks, preventing an estimated €4.2 million in lost excise revenue, according to the Ministry of Finance. The first haul, more than 3.5 million cigarettes, was uncovered on Jan. 28 in Rotterdam hidden inside a container of plastic crates, while a second seizure of 6.5 million cigarettes followed a customs check at Rotterdam port, where cartons were concealed within wooden sauna crates. A further 2.5 million cigarettes were found in raids at premises in Vlijmen and a warehouse in Den Bosch, with authorities stating the tobacco was intended for illegal sale in the Netherlands. One suspect has been arrested, and further arrests have not been ruled out.

  • U.S. Vape Block on Imports Could Cut Illicits by a Third: BAT

    U.S. Vape Block on Imports Could Cut Illicits by a Third: BAT

    A potential U.S. ban on imports of certain disposable e-cigarettes could reduce illegal vape sales by as much as one-third, according to British American Tobacco CEO Tadeu Marroco. BAT estimates unauthorized products, largely manufactured in China, account for roughly 70% of U.S. e-cigarette sales, undermining both regulated vape brands and traditional cigarette businesses. The company is pursuing two cases before the U.S. International Trade Commission (ITC) seeking to block imports of products that infringe its patents. An ITC judge previously recommended an exclusion order, with a final decision expected in March, followed by a 60-day presidential review.

    “What we want to see in the US is a level playing field because in a level playing field, we know that we can win,” Marroco said.

    Marroco cautioned that any market impact would likely be delayed due to existing supply chains and inventory levels, suggesting significant effects may not occur until 2027. He also indicated that the U.S. Food and Drug Administration could consider alternative regulatory approaches for e-cigarettes, potentially including flavored products, as the agency evaluates ways to streamline product authorization processes.