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Category: Illicit Trade

  • Queensland Shuts 148 Stores, Seizes $10.4M in 10-Day Blitz

    Queensland Shuts 148 Stores, Seizes $10.4M in 10-Day Blitz

    Queensland authorities closed 148 stores and seized more than A$15.7 million ($10.4 million) worth of illegal smoking products in a 10-day enforcement operation that ended last week. Dubbed Operation Major, the blitz targeted illicit cigarettes, loose tobacco, vapes, vaping liquids, and nicotine pouches, resulting in the confiscation of 11.8 million cigarettes, 1.7 tons of loose tobacco, 87,000 vapes, 4.2 liters of vaping liquid, and 270,000 nicotine pouches.

    The closures were executed under new laws allowing Queensland Health to shut stores for 90 days without a court order. Health Minister Tim Nicholls said the operation demonstrates the state’s commitment to cracking down on illegal tobacco and vaping products, warning that black-market operators will be aggressively pursued.

    Theo Foukkare, CEO of the Australian Association of Convenience Stores, welcomed the move but noted that illicit traders are shifting online due to federal inaction on illegal tobacco. He emphasized the need for coordinated national measures to redirect consumers to the regulated market.

  • Imperial Canada Urges Action as Illicit Pouch Surge

    Imperial Canada Urges Action as Illicit Pouch Surge

    Imperial Tobacco Canada called on the federal government to act quickly against a growing illicit market for nicotine pouches, following a CBC investigation that found widespread illegal sales in stores and online. The company says a recent Ministerial Order requiring legal pouches to be kept behind pharmacy counters has backfired by pushing consumers toward unregulated, higher-nicotine products sold without age checks.

    “By restricting access to regulated products, the policy has driven consumers straight toward unmonitored, illegal alternatives,” said Eric Gagnon, Imperial’s vice-president of corporate and regulatory affairs. He warned that these illicit pouches often lack quality controls and pose risks to public health, especially for youth.

    Imperial echoed public health expert David Hammond’s call for stronger enforcement, including proactive retail inspections, but said enforcement alone is insufficient. The company argues that allowing approved cessation products to be sold in convenience stores and gas stations—where adult smokers already shop—would help cut demand for illegal alternatives. Imperial’s ZONNIC, the only pouch authorized by Health Canada, is limited to 4 mg of nicotine and must meet strict standards, unlike the illicit products now proliferating across the market.

  • Bangladesh Uncovers Major Cigarette Tax-Evasion Scheme

    Bangladesh Uncovers Major Cigarette Tax-Evasion Scheme

    Bangladesh’s National Board of Revenue (NBR) says a raid on United Tobacco Industries Limited in Ishwardi, Pabna, uncovered the equivalent of Tk 90 million ($738,000) in tax-evaded products. Investigators said that despite the company having VAT registration, it was secretly producing and marketing cigarettes without showing formal production activities.

    Authorities seized 634,590 cigarettes carrying fake banderoles—worth more than Tk 3.8 million ($31,000)—linked to nearly Tk 2.9 million ($24,000) in evaded government revenue. They also recovered 1.03 million unused fake banderoles, which the NBR says could have enabled more than Tk 85 million ($697,000) in additional tax losses.

    All materials have been confiscated, legal action is underway, and the VAT Commissionerate will tighten oversight of the company’s operations, the NBR said.

  • Malaysian Raid Seizes $2.7M in Illicit Vapes

    Malaysian Raid Seizes $2.7M in Illicit Vapes

    Malaysia’s Customs Department detailed the seizure of more than RM13 million ($2.7 million) worth of illicit vape devices and liquids during an October raid on a storage warehouse in Padang Besar. Officers discovered 719,250 units, including over 211,000 devices and 508,000 liquids, all of which were believed to be undeclared and lacked the required Health Ministry import permits.

    The products, imported from China, had arrived via Kuala Lumpur International Airport before being transported to Perlis. A man in his 40s is under investigation, and authorities are probing whether the stock was intended for domestic sale or re-export.

  • Korea Busts Cigarette Smuggling Operation

    Korea Busts Cigarette Smuggling Operation

    Seoul Regional Customs referred three people to prosecution for smuggling packs of cigarettes and falsifying customs declarations to evade taxes. Authorities said the suspects re-imported 1.75 million exported cigarette packs by claiming they were being sent to a third country, while concealing the goods in a warehouse in Busan and declaring shipments as water bottles and newspapers. The scheme reportedly avoided around 6.1 billion won ($4.2 million) in taxes.

    According to The Korea Times, the ringleader, already on trial for a similar smuggling case, had amassed significant assets, including a high-value Seoul apartment, which authorities have seized in coordination with prosecutors.

  • Pakistan Seals Two Cigarette Factories for Illicit Trade

    Pakistan Seals Two Cigarette Factories for Illicit Trade

    Pakistan’s Federal Board of Revenue (FBR) sealed the manufacturing units of M/s Indus Tobacco Company and M/s Souvenir Tobacco Company in Mardan for “producing and circulating non-duty-paid and non–track-and-trace-stamp (TTS) cigarettes,” marking a historic enforcement action against politically connected operators, according to The Dawn. During raids, 62 cartons of illegal cigarettes were seized, and the manufacturing machinery of both companies was locked. Authorities confirmed that the crackdown targets the growing illicit cigarette market, which is estimated to cost Pakistan Rs. 250–300 billion ($900 million to $1.1 billion) annually in lost revenue.

    The operations were conducted by the Directorate of Intelligence & Investigation–IR Peshawar and officers from the Regional Tax Office Peshawar despite resistance from armed personnel linked to prominent local politicians. According to Pakistan’s Business Recorder, the factory closings happened “despite extraordinary pressure by a prominent political personality,” and included “apparent threats to the FBR officials.”

    The actions form part of a multi-layered national enforcement plan, backed by the Prime Minister and the Pakistan Army, aimed at dismantling illegal cigarette production, strengthening monitoring systems, and disrupting illicit supply chains. Over 200 FBR monitors and 120 Pakistan Rangers personnel have been deployed nationwide to oversee production, ensure lawful removal of goods, and prevent illicit manufacturing at Green Leaf Threshing units. The FBR emphasized that no political pressure would deter the enforcement of tax laws, highlighting the unprecedented sealing of factories previously protected by political influence.

  • Spain Probes Tobacco Smuggling Via Drones

    Spain Probes Tobacco Smuggling Via Drones

    Spanish authorities have launched an investigation into drone-led tobacco smuggling in La Línea after several devices were spotted near Gibraltar Airport, disrupting flights and forcing an RAF aircraft to divert to Portugal. According to Europa Sur, Spanish agencies have detected a sharp rise in smuggling groups using drones to bypass both the land frontier and traditional maritime routes. Customs officials say they are now coordinating with multiple enforcement bodies to counter the tactic.

    In London, Gibraltar representative John Cortes raised the issue with UK Minister of State for Defence Lord Coaker, highlighting the airport’s increasing exposure to drone incursions. The Royal Gibraltar Police, the MOD, and local aviation authorities have been investigating illegal drone activity for several months, as cross-border smuggling operations evolve.

  • Counterfeit Tobacco Makes up 50% of Cambodian Market

    Counterfeit Tobacco Makes up 50% of Cambodian Market

    Tobacco industry experts in Cambodia warn that the presence of illicit products in the market are increasing at “an alarming pace,” climbing close to 50% of the market, closing in on neighboring Malaysia’s 60% in the Asean region. The scale of the problem is measured through discarded cigarette pack surveys, which reveal a growing trend of untaxed and unregulated products.

    Representatives say that the government is losing more than $38 million annually in tax revenue, noting that the true impact is even greater as the legal industry’s growth is stifled. Authorities destroyed 70 tons of counterfeit cigarettes last year, seizing 23 types of illegal products from a factory inside the Kingdom.

  • Poland Dismantles Armenian Crime Gang Running Illegal Cigarette Factories

    Poland Dismantles Armenian Crime Gang Running Illegal Cigarette Factories

    Polish police and border guards said they dismantled a major organized crime group running three illegal cigarette factories in the Mazowieckie and Łódzkie regions. The coordinated raids led to the arrest of nine Armenian citizens and six others, with authorities seizing more than 12.7 million counterfeit cigarettes, 25 tons of tobacco, and a complete production line. Officials estimate the illicit goods were worth over 28 million zloty ($7.6 million).

    Prosecutors in Łódź charged 14 suspects with operating an organized criminal group, producing illegal tobacco products, and committing tax crimes. Four face additional charges for storing or transporting cigarettes without excise stamps. While one suspect was released under police supervision, the remaining 14 were remanded in custody for three months as the investigation continues.

    Authorities say the operation prevented an estimated €12.5 million in lost excise and VAT revenue. The crackdown comes amid growing concerns over Poland’s black market for tobacco, which accounted for 4.3% of total cigarette consumption in 2024, costing the state €312 million in lost tax revenue, according to a report commissioned by Philip Morris International.

  • Hong Kong Customs Seizes 240,000 Illicit Cigarettes in Raid

    Hong Kong Customs Seizes 240,000 Illicit Cigarettes in Raid

    On Wednesday (November 12), Hong Kong Customs raided a suspected illicit cigarette storage center in Kwai Chung, seizing approximately 240,000 cigarettes with an estimated market value of HK$1.1 million ($140,000) and potential duties of HK$790,000 ($103,000). Customs investigation revealed that the syndicate used hotel rooms as temporary storage, employing an “ant-moving-home” distribution method to evade detection. During the raid, officers intercepted 80,000 cigarettes from four men and later seized an additional 160,000 cigarettes from a hotel room, arresting a fifth individual. The suspects have been charged under the Dutiable Commodities Ordinance and are scheduled to appear at West Kowloon Magistrates’ Courts.