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Tag: illicit

  • China Tackles North Korean Cigarette Bootleggers 

    China Tackles North Korean Cigarette Bootleggers 

    Chinese authorities have intensified their crackdown on smuggled North Korean cigarettes, one of Pyongyang’s primary illicit exports, causing the distribution network to shrink dramatically, Daily NK has learned. Although secretly distributed in China for years and popular among local consumers for their value, the contraband cigarettes now face serious challenges as distributors and sellers are being arrested or fined.

    “This month alone, three Chinese dealers handling North Korean cigarettes were arrested for smuggling,” a Daily NK source in North Pyongan province said recently. “Distribution has virtually stopped as Chinese authorities target mail and parcel services in Liaoning and Jilin provinces.”

    About 20 cigarette brands from North Korea’s major tobacco factories—including Yalu River Cigarette Company, Pyongyang Unha Tobacco Factory, and Naegohyang Tobacco Factory—were being sold secretly in Chinese markets.

    North Korean cigarettes match Chinese luxury brands in quality but cost less, making them consistently popular among Chinese smokers. Despite prices nearly doubling since pre-COVID times, they remain cheaper than local alternatives, maintaining steady demand. The situation changed abruptly when China’s State Tobacco Monopoly Administration partnered with police to intensify operations against illicit North Korean cigarette imports and distribution. Those caught distributing or selling the contraband now face substantial fines or prison sentences. 

    “Chinese traders now avoid cigarettes as police raid warehouses and seize stores based on tip-offs,” the source explained. “With 200,000 yuan  ($28,000) fines and threats of being treated like drug dealers, traders are either complaining or quitting the business.”

  • Essex Vape Shop Closed for 3 Months for Selling Illicit Vapes

    Essex Vape Shop Closed for 3 Months for Selling Illicit Vapes

    The Mellow Yellow Vape Shack in south Essex, England, was ordered to close for three months after being caught selling counterfeit tobacco and illegal vapes by Thurrock Council’s trading standards team in February. The team, accompanied by sniffer dog Lily, found large quantities of counterfeit cigarettes and hand-rolling tobacco hidden in the shop, along with illegal vapes that came in packaging targeting children or that were more than 10 times the legal tank size.

    This is the second time the shop has been caught selling illegal products in less than six months. The Basildon Magistrates Court ordered the shop to remain closed for three months and for Amir Ahmadi to pay £4,665.67 in costs.

    “Let this be a message to any business that thinks it can cheat and endanger its customers by selling counterfeit and illegal goods,” said Victoria Holloway, councilor responsible for place and the environment. “Our trading standards team will find you and the full force of the law will be used to hold you to account.”

  • Tobacco Bootleggers, Police Becoming More Creative

    Tobacco Bootleggers, Police Becoming More Creative

    Tobacco bootleggers are becoming more inventive in their methods of storing and transporting goods, and thus, police and enforcement officials are adapting in the ways they catch them. The seizure of illegal tobacco products in Hull, England, doubled last year, according to the city council, with more than 2.4 million counterfeit cigarettes confiscated, along with 45,731 illegal vapes, and 25,841 tobacco pouches.

    Detection dogs have uncovered illicit tobacco in numerous sophisticated hiding places, including a compartment inside a concrete drain, a delivery chute from an upstairs flat, a false mirror, and a floor safe with a hidden hydraulic lift, the council said.

    Rachel Stephenson, head of public protection at the council, said seizures ranged from small traders to “major distributors in the city.” One raid found thousands of counterfeit products hidden inside an industrial bin.

    “Our team and our partners demonstrate over and over again that they stay a step ahead of those trading illegal tobacco and vapes,” Stephenson said.

  • Thailand Police Bust $58K Per Day Vape Ring

    Thailand Police Bust $58K Per Day Vape Ring

    Police in Thailand arrested three Chinese suspects, two men and a woman, in a sting operation in Pattaya and seized vape pens and zombie-vape liquid from the suspects, who allegedly admitted to sales worth 2 million baht ($58,000) a day. They were charged with the illegal sale of e-cigarettes and vaping liquid and with selling contraband goods.

    Police Major General Patanasak Bupphasawan said the suspects admitted daily sales of about 1,000 e-cigarettes to tourists and young people. The arresting team also seized about 100 grams of powdered etomidate anesthetic, e-cigarettes, and equipment for mixing the anesthetic and e-liquid to make zombie-vape fluid. The seized products were worth about 513,590 baht ($15,000).

  • House Reps Calling for Crackdown on Illicit Chinese E-Cigs

    House Reps Calling for Crackdown on Illicit Chinese E-Cigs

    Three U.S. representatives are calling on the Trump administration to crack down on the sale of illegal vape products.

    According to CSP Daily News, U.S. Reps. Dusty Johnson (R-South Dakota), Select Committee on China Chairman John Moolenaar (R-Michigan) and Ranking Member Raja Krishnamoorthi (D-Illinois) sent a letter to Department of Homeland Security Secretary Kristi Noem, Attorney General Pam Bondi and Food and Drug Administration Acting Commissioner Sara Brenner urging the Trump Administration to take action on the influx of unauthorized Chinese-made e-cigarettes and vapes sold in America.

    “The large-scale smuggling of these illicit vaping products —accounting for more than half of all vapes sold in the United States—undermines American public health priorities and contributes to a significant increase in youth vaping,” the letter said. “The Chinese Communist Party is fueling this crisis. The CCP has banned the sale of flavored e-cigarettes within its own borders yet continues to export these same products worldwide. If these products are deemed unsafe for their own citizens, we must question their efforts to smuggle and sell these products in the United States.”

    In June 2024, the U.S. Department of Justice (DOJ) and the FDA created a federal multi-agency task force to combat the illegal distribution and sale of e-cigarettes. The congressmen said in the letter that this task force was an “important” step forward, but more must be done.

    “It is time to go even further and utilize all enforcement tools at our disposal,” the letter said. “Seizing these products is also an essential step, which currently occurs far too infrequently.”

  • Nearly $250K in Illegal Nicotine Products Seized in U.K.

    Nearly $250K in Illegal Nicotine Products Seized in U.K.

    Thousands of illegal nicotine products were seized in South West, England, last week as Trading Standards South West (TSSW) and police officers raided 50 locations over five days across the region. Part of Operation CeCe, officials seized 127,371 cigarettes, 65.94kg (2,326 oz) of hand-rolling tobacco, 4,490 vapes, and 2.5kg (88 oz) of shisha, all illegal, with a total value of £186,000 ($241,800).

    “Members of [the] public need to be aware of [the] serious criminal association that these products have to criminal gangs,” said Ben Hayes, the regional illegal tobacco and vape lead at TSSW. “I urge anyone with concerns about sales of illegal tobacco and vaping products, including their underage sales, to report them to Trading Standards South West.”

  • Copenhagen Inspections Reveal Widespread Sale of Illicit Products

    Copenhagen Inspections Reveal Widespread Sale of Illicit Products

    Authorities in Denmark said they found illegal tobacco, nicotine, and vape items for sale in 21 out of 22 convenience stores in Copenhagen during a recent round of inspections (called “control visits”) with items reportedly hidden behind paneling, among parcels, behind shelves, and in used chocolate boxes. The products found during the raids are banned because they do not comply with Danish sales laws or because duty had not been paid on them, the Health Ministry said.

    “It makes me angry that so many convenience stores are breaking the law and selling illegal nicotine products. It’s completely unacceptable,” Health Minister Sophie Løhde said. “They are gambling with the health of children and young people when they sell illegal vapes or e-cigarettes that taste like candy but are filled with high amounts of nicotine and can also contain narcotic substances. This has to be stopped.”

    Eighteen of the violators have been fined by at least one authority, while two stores were banned from selling food, according to the ministry.

    “The large-scale operation by authorities in Copenhagen kiosks has revealed massive problems and rule-breaking,” Tax Minister Rasmus Stoklund said. “This is completely unfair on the rest of us. It must be stopped, and we need to crack down hard on people who break the rules.” 

  • Belgium’s Cigarette Black Market Soars

    Belgium’s Cigarette Black Market Soars

    Cimabel, the cigarette manufacturers’ federation for Belgium and Luxembourg, said that 36.5% of consumed cigarettes in Belgium dodged taxation in 2024, a staggering increase from the 20% in 2023. While only 1% of the cigarettes are counterfeit, Cimabel blames “excessive” tax hikes imposed by the previous federal government on legal products are allowing organized crime syndicates to smuggle in illicit product from Bulgaria to sell significantly cheaper.

    Already with a reputation as a smuggling hub for arms and drugs, Cimabel warns that Belgium authorities are now tasked with getting on the global bandwagon to reduce cigarette smoking without opening the door for criminals.

    “The state is hemorrhaging revenue while criminals rake in millions,” Cimabel said. “The federation is now calling for a rethink on excise policies, urging the government to strike a balance between public health and stopping illicit traders from lighting up their profits.” 

  • Report: Massachusetts’ Restrictions Created Huge Illicit Market

    Report: Massachusetts’ Restrictions Created Huge Illicit Market

    A new report says that Massachusetts, one of the states at the forefront of fighting tobacco and nicotine with taxes and regulations, saw a 21,000% increase in illegal vape seizures last year. The Massachusetts Multi-Agency Illegal Tobacco Task Force (which is under the umbrella of the state’s Department of Revenue) said state police vape seizures jumped from 1,326 units to 279,432.

    The report also found there is a thriving market for untaxed menthol cigarettes, flavored cigars, and other banned products, all presumedly powered by state policies like high taxes and strict prohibition.

    “It just shows that, in the state’s own report, black market sales will rise or thrive because of this,” V.J. Mayor, the CEO of the Northeast Wholesalers Association told Inside Sources. “And it doesn’t achieve the public health outcome that the state is looking for when it increases state excise taxes on cigarettes.

    “Massachusetts’ experience proves that overly restrictive policies do not eliminate the problem, they simply drive it underground. This fuels a thriving black market, undermines legitimate businesses, and ultimately shortchanges the state’s revenue.”

    The state’s restrictive policies date back to 2019’s “An Act Modernizing Tobacco Control” law, which banned the sale of flavored tobacco products, added new regulatory requirements, and placed a 75% excise tax on electronic nicotine systems. It also opened the door for local authorities to extend their own controls, with numerous towns adding more taxes, creating generational bans, and outlawing specific products.

    “These numbers are absolutely staggering and prove what [we] warned from the start—Massachusetts has created the perfect environment for illegal smuggling,” said Peter Brennan, executive director for the New England Convenience Store and Energy Marketers Association. “Our members are losing customers to the illicit market every day, and the state is bleeding tax revenue because criminals are filling the void created by excessive taxes and product bans.”

    Paul Craney, from the free-market Massachusetts Fiscal Alliance think tank, says Massachusetts has one of the highest rates of consumers who buy tobacco products without paying state taxes as people cross the border into New Hampshire to buy the products significantly cheaper, and then also end up doing more shopping for alcohol, groceries, and more. The Tax Foundation and Mackinac Center for Public Policy found that between 2007 and 2022, New Hampshire’s government received $955 million from Massachusetts smokers.

    “This report is also clear evidence of just how misguided additional prohibitions would be,” Brennan said. “Ideas like creating a so-called nicotine-free generation or limiting sales of nicotine products to adult-only stores will only make a bad situation worse—driving even more consumers to illegal sellers, costing even more tax revenue, and putting even more pressure on our small businesses.”

  • Pakistan: IMF Urges Better Control Over Illicit Trade

    Pakistan: IMF Urges Better Control Over Illicit Trade

    The International Monetary Fund (IMF) raised concerns over tax evasion in Pakistan’s cigarette sector, citing that illicit and untaxed cigarettes now account for up to 50% of the industry. According to sources, concern was raised with Pakistani authorities by the IMF delegation during talks about unlocking a $1 billion loan under the current program.

    Sources said that the IMF urged Pakistan to regulate the illegal tobacco market, with discussions also covering a market study on illicit cigarette trade during a detailed session with the Federal Board of Revenue (FBR) regarding the Track and Trace system.

    The IMF lauded FBR’s Track and Trace mechanism, noting that it has significantly reduced tax evasion across four key sectors—sugar, cement, fertilizer, and tobacco. However, it expressed dissatisfaction over the retail sector’s tax compliance, stressing the need for improved revenue collection.