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Tag: illicit cigarettes

  • Philippines Urged to Lead ASEAN Effort Against Growing Illicit Tobacco Trade

    Philippines Urged to Lead ASEAN Effort Against Growing Illicit Tobacco Trade

    The Philippines has been urged to spearhead a coordinated ASEAN response to illicit tobacco trade as it assumes the bloc’s chairmanship, with government and industry representatives warning that tobacco smuggling has evolved into a sophisticated regional criminal enterprise. Speaking at the Third International Tobacco Summit in Pasig City, participants called for harmonized enforcement and regulatory strategies across Southeast Asia to prevent transnational syndicates from exploiting gaps between national markets.

    According to Euromonitor International, illicit tobacco in the ASEAN-6 markets—comprising the Philippines, Indonesia, Malaysia, Vietnam, Thailand and Singapore—resulted in an estimated $12.6 billion in lost government revenue over the past two years, with illicit volumes projected to grow from 145 billion sticks in 2025 to 170 billion sticks by 2028. Domestically, the Philippine Tobacco Institute estimated the country’s illicit tobacco market at P141 billion ($2.3 billion) and called for stronger regional collaboration to combat increasingly sophisticated smuggling networks. Industry representatives also advocated greater use of artificial intelligence tools to improve cargo screening and identify suspected tobacco smuggling operations. Japan Tobacco International regional anti-illicit trade director Valentin Dinca said the Philippines ranks among the strongest markets globally in combating illegal tobacco trade, while noting further opportunities to enhance enforcement capabilities and reduce illicit market activity.

  • Cambodians Uncover Two Counterfeit Cigarette Factories

    Cambodians Uncover Two Counterfeit Cigarette Factories

    Cambodian law enforcement authorities uncovered two counterfeit cigarette manufacturing facilities in Kandal province as part of a broader crackdown on organized crime and illicit activities. During raids conducted on June 22 in Svay Rolum and Setbo communes of Takhmao town, officers from the National Police General Commissariat and other agencies seized large quantities of counterfeit cigarettes bearing multiple brands.

    One of the factories was reportedly producing counterfeit versions of well-known international brands, including Marlboro, Winston, JPS Classic, Gold Mount, and Canyon. Five supervisors and workers were detained for questioning, while authorities confiscated evidence and sealed both facilities pending further legal proceedings. The discovery comes amid intensified efforts by Cambodian authorities to combat illicit manufacturing, smuggling and other large-scale criminal operations.

  • NZ Retailers Want Action as Illicits Climb

    NZ Retailers Want Action as Illicits Climb

    A retail industry report by FTI Consulting estimates illicit tobacco accounts for 33.5% of total consumption in New Zealand, up from 27.2% a year earlier, though anti-smoking advocates dispute the methodology and argue it does not align with tax revenue trends. Official data from Stats NZ shows no dedicated national study of illicit tobacco consumption, while Treasury figures indicate tobacco excise revenue fell to $1.47 billion ($852 million) in 2024–25, down about $2 million ($1.2 million) from the previous year.

    Customs and government agencies have formed an interagency action group with police and health authorities to target illicit tobacco supply chains, while enforcement penalties include up to six months’ imprisonment or a $20,000 ($11,600) fine for illegal sales. Australia is cited in comparison, where the Bureau of Statistics estimated 80% of nicotine products consumed in 2025 were illicit, up from 12% in 2017.

  • Indonesia Customs Seizes 8M Illegal Cigarettes

    Indonesia Customs Seizes 8M Illegal Cigarettes

    Indonesia Customs and police are investigating a smuggling network after seizing 8.3 million illegal cigarettes at the Merak–Bakauheni ferry crossing on June 11, preventing an estimated Rp7.9 billion ($442,000) in state losses. The shipment, valued at Rp12.68 billion ($710,000), included OK BOLD and imported Double Happiness cigarettes concealed under livestock feed on a truck traveling from Java to Sumatra.

    Authorities arrested the truck driver, who has been charged under Indonesia’s Excise Law, and say he has links to prior similar deliveries. Investigators are now working to identify the wider ownership, financing, and supply network behind the operation.

  • Maldives Customs Seizes 2.3M Smuggled Cigarettes

    Maldives Customs Seizes 2.3M Smuggled Cigarettes

    Authorities at the Maldives Customs Service intercepted more than 2.3 million smuggled cigarette sticks during an operation at the Malé Commercial Harbor last week, uncovering over 230 cases of illicit tobacco products with an estimated street value exceeding MVR 32 million ($2.1 million). Officials did not disclose further operational details, but the seizure comes amid a noted surge in cigarette smuggling following recent hikes in tobacco import duties. The case also follows earlier incidents involving charges over the theft of a container holding previously confiscated cigarettes, underscoring growing enforcement challenges tied to the expanding black market for tobacco in the Maldives.

  • Bosnia, Industry Cracking Down on €500M Tobacco Black Market

    Bosnia, Industry Cracking Down on €500M Tobacco Black Market

    Authorities and industry representatives in Bosnia and Herzegovina say the illegal tobacco trade is costing the country more than €500 million annually, as cigarettes without excise stamps and cross-border smuggling continue to undermine the legal market and public revenues. Officials from the Indirect Taxation Administration of Bosnia and Herzegovina and the Finance Ministry stressed that coordinated enforcement, stable excise policy, and cooperation with manufacturers such as British American Tobacco and Japan Tobacco International helped reverse a sharp market collapse seen around 2019–2020, when legal cigarette volumes fell from 12 billion to 3.5 billion sticks annually.

    Authorities say improved policy alignment and citizen reporting through the “Stop Smuggling” campaign have since supported revenue recovery, while warning that the shadow market still distorts competition, drains budgets that fund public services, and complicates efforts to align with European regulatory standards. 

  • Hong Kong Customs Busts $1.5M Illicit Cigarette Ring

    Hong Kong Customs Busts $1.5M Illicit Cigarette Ring

    The Hong Kong Customs and Excise Department arrested three people following a months-long investigation into an illicit cigarette distribution and money laundering syndicate that led to the seizure of about 2.2 million untaxed cigarettes and HK$11.3 million ($1.5 million) in suspected criminal proceeds. The case stems from a January raid on a remote warehouse in Ngau Tam Mei, where investigators discovered the cigarettes—valued at HK$9.9 million ($1.3 million)—along with detailed records documenting brands, storage dates, and volumes.

    A follow-up financial probe found that one of the suspects used his own bank accounts, as well as those of his girlfriend, to process payments from customers buying illicit cigarettes, while a third suspect is believed to have supplied the products. Investigators identified thousands of transactions between 2021 and 2025 involving more than 1,000 third parties, with rapid fund movements and low balances characteristic of money laundering activity. The suspects have been released on bail pending further investigation. Under Hong Kong law, trafficking illicit cigarettes carries penalties of up to HK$2 million ($260,000) in fines and seven years’ imprisonment, while money laundering convictions can bring fines of up to HK$5 million ($650,000) and 14 years in prison.

  • Malaysia’s Illicit Cigarette Market at ‘Critical Stage’

    Malaysia’s Illicit Cigarette Market at ‘Critical Stage’

    Malaysia’s illicit cigarette market is approaching a “critical stage,” with illegal products now accounting for roughly 50% of total consumption, according to industry representatives. Philip Morris International and Japan Tobacco International executives said the country’s illicit rate is among the highest in the region, far exceeding levels in markets such as Singapore and Thailand, and warned that widespread availability has normalized illegal purchasing among consumers.

    Industry speakers linked the surge to a sharp excise tax increase in 2015, which widened the price gap between legal and illicit products and drove illegal market share to as high as 63% at its peak. Officials and stakeholders emphasized that addressing the issue will require a coordinated approach combining stronger enforcement, policy adjustments and greater public cooperation, as smuggling networks continue to adapt and exploit regulatory gaps.

  • PMI Calls for Lower Cigarette Taxes in Meeting With Australian Govt

    PMI Calls for Lower Cigarette Taxes in Meeting With Australian Govt

    Philip Morris used a closed-door Australian Senate hearing on illicit tobacco to argue that high excise taxes are driving consumers toward the black market and called for lower cigarette prices to restore legal sales. According to a released transcript, company representatives said taxes account for at least A$34 of a A$37.95 pack ($24.48 of $27.32), while illicit cigarettes can sell for as little as A$12 ($8.64), contributing to an illicit market estimated at 50–60% of total sales, or A$4–A$7 billion ($2.8–$5 billion).

    The company told lawmakers that narrowing the price gap between legal and illegal products could help shift consumers back into regulated channels, citing price, access, and enforcement as key drivers of illicit trade. The hearing, which was initially held in private, drew criticism from public health advocates who said it “ran counter to an international treaty Australia signed up to in the mid-2000s,” while government officials defended the decision to include industry input in the inquiry.

  • Ireland Customs Seizes 11M Illegal Cigarettes

    Ireland Customs Seizes 11M Illegal Cigarettes

    Revenue officers in Ireland seized about 11.4 million illicit cigarettes at Dublin Port following a targeted inspection on April 30. The shipment, which arrived from Rotterdam and was declared as cardboard packaging, was flagged through routine risk profiling and uncovered with the assistance of a detector dog and mobile X-ray scanner. The cigarettes, including brands such as Lambert & Butler Silver, Superkings Blue, and Richmond, are estimated to be worth more than €10.8 million, with a potential tax loss to the state of over €8.4 million.

    Authorities said investigations are ongoing and noted the seizure forms part of broader efforts to combat illegal tobacco trade and the shadow economy.