Tag: Fair Trade Independent Tobacco Association

Call for Inquiry into Illicit Tobacco Market

Photo: Tobacco Reporter archive
British American Tobacco has called for an inquiry into South Africa’s tobacco market following a new report showing surging sales of illicit cigarettes.
The number of shops selling illegal cigarettes in the Eastern Cape has more than doubled in the four months since the last time results were released, according to a recent Ipsos report. In KwaZulu-Natal, the rate has shot up by one-third. Two out of three shops in the hotspot provinces of Free State, Gauteng and Western Cape sell illegal cigarettes, and illegal cigarettes are on sale in nearly half (41 percent) of all shops nationwide.
Five times as many outlets on petrol forecourts now sell illegal cigarettes since the last time results were released, according to BAT. Illegal cigarettes are being sold for as little as ZAR6 ($0.42) per pack, a fraction of the Minimum Collectible Tax (MCT) rate of ZAR21.60 per pack of 20.
“This research is damning proof that authorities have failed to bring South Africa’s colossal criminal market in cigarettes under control,” said BATSA General Manager Johnny Moloto in a statement. “Tax-evading manufacturers who exploited last year’s lockdown ban are now running rampant and costing South Africans huge sums of money at a time when every cent is a lifesaver. It is nothing short of a national emergency that demands a full-scale inquiry into the whole industry.”
According to BAT, brands owned or licensed by members of the Fair-Trade Independent Tobacco Association feature prominently on the black market. The FITA in the past has rejected suggestions that its members are involved in the illicit trade.
The latest Ipsos fieldwork was carried out from June 15–22, 2021, and follows similar studies in March and February of this year.
Moloto urged the government to introduce of a minimum retail sales price of ZAR28 for a pack of 20, ratify the World Health Organization’s illicit trade protocol and introduce a track-and-trace system, among other measures to fight the illegal cigarette trade.
July 7, 2021
Smuggling Prompts Call for Monitoring Officers

Photo: Tobacco Reporter archive
The Fair-Trade Independent Tobacco Association (FITA) has called for stronger monitoring of law enforcement officers following the arrest of members of the South African National Defense Force for allegedly transporting illicit cigarettes.
Two Defense Force members were arrested along with a civilian, who is believed to be an illegal immigrant, while driving an army vehicle full of illicit cigarettes set to be delivered to an unidentified buyer in Musina, according to Eyewitness News.
“As an organization, we have long been vocal about corrupt law enforcement agents and officials at our border posts who play a substantial role in the smuggling of illicit cigarettes via our various border posts,” FITA wrote on its website.
“The latest incident, as shocking as it is, affirms our long-held view that the criminal syndicates behind the rampant smuggling of cigarettes into the country can only succeed with the help of corrupt law enforcement agents.
“We call on the various bodies in our criminal justice system responsible for the investigation, prosecution and adjudication of matters such as this to ensure that justice is administered and that the sovereignty and integrity of this country is protected.
“Incidents of this nature undermine our national security and embolden the criminal syndicates responsible for these acts, which, amongst other things, rob our fiscus of billions.
“We also call on all law enforcement agencies to implement stronger measures to monitor the conduct of their members while on duty. The illicit trade in cigarettes and other goods cannot flourish with the aid of corrupt law enforcement agents. We have of late been encouraged by the great work being done by various law enforcement agencies in rooting out the illicit trade in cigarettes, and we hope that they can rid themselves of these rotten apples who are putting a black mark on all these efforts.”
June 21, 2021
FITA Complains About Loose Cigarette Sales

Photo: Tobacco Reporter archive
The Fair-Trade Independent Tobacco Association (FITA) has filed a criminal complaint with the South African Police Service against British American Tobacco South Africa (BATSA) for violating the Tobacco Products Control Act 83 of 1993 and the Customs and Excise Act 91 of 1964.
“On or about May 28, 2021, we received information that BATSA and certain retail stores in and around the greater Johannesburg area were contravening provisions of inter alia the Tobacco Products Control Act and the Customs and Excise Act by selling loose cigarettes and giving and/or gifting to the consumer ZAR5 [$0.36] worth of mobile telephone airtime vouchers together with a small rectangular metallic box, which holds up to three loose cigarettes, branded with one of the many BATSA brands,” the organization wrote on its website.
FITA “conducted test purchases” to confirm the alleged sales and states that it has “photographs and video footage depicting the promotional material and packaging for the sale of loose cigarettes.”
Selling loose cigarettes and gifting promotional material like the boxes and phone cards is prohibited in South Africa.
June 3, 2021
Minister May Appeal Tobacco Ban Ruling

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The Western Cape High Court has granted South African Minister Nkosazana Dlamini-Zuma permission to appeal the ruling that last year’s lockdown ban on tobacco sales was unconstitutional and invalid.
However, the court indicated that the minister’s prospects of success are slim in terms of the applicants’ constitutional law arguments.
From March to August 2020, the government prohibited sales of tobacco products and alcohol to help stem the spread of the coronavirus. Market leader British American Tobacco South Africa (BATSA) and smaller companies united in the Fair-Trade Independent Tobacco Association (FITA) challenged the ban, arguing that a short-term ban on a product whose health risks become evident only in the long run makes no sense.
They also questioned the rationale of the argument around cigarette sharing. Tobacco shortages and high prices of black market cigarettes would only increase the likelihood of smokers sharing their “stompies,” the tobacco companies said.
The government lifted the ban before the matter had been heard in court, but BATSA decided to proceed with the court action to prevent the ban from being reintroduced at a later stage of the pandemic.
On Dec. 11, the High Court ruled that South Africa’s ban on tobacco sales during the country’s hard lockdown earlier this year was unconstitutional.
“BATSA and our nine co-applicants had a resounding success in December with a strong judgment delivered in our favor,” said Johnny Moloto, the general manager of BATSA, in a statement. “Based on the strength of the High Court’s findings, we are confident that the Supreme Court of Appeal will uphold the Western Cape’s judgment and rule in our favor.”
BATSA said that, instead of taking futile challenges to the Supreme Court, the government should immediately ratify the global Illicit Trade Protocol that has been sitting on its desk for close to a decade and roll out a compliant tobacco track-and-trace system.
“Despite our confidence in the success of our case, we think the government would be wiser allocating its resources to combating the illicit trade in cigarettes, which was fortified by the ban and is now running rampant across South Africa,” said Moloto.
In a press note, BATSA said it supports a recent call by the FITA and the South African Tobacco Organization for an investigation into the illegal trade in cigarettes.
“This is an issue of utmost national importance that is taking huge sums out of the pockets of South Africans and putting it in to the pockets of criminals every single day. It deserves a fully resourced investigation or Commission of Inquiry with real powers,” said Moloto.
BATSA expects the investigation to pay for itself by identifying the culprits behind the illegal trade, prosecuting them and shutting down the illegal market to return billions in lost taxes to South African citizens.
March 2, 2021