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Tag: illicit

  • Reno Reporters Stumble into Counterfeit Zyn

    Reno Reporters Stumble into Counterfeit Zyn

    News 4-Fox 11 in Reno, Nevada, is reporting its investigation that found counterfeit Zyn products for sale at a local convenience store that looked identical to the legitimate brand. Last October, an employee of the station bought three cans of “Zyn,” which he said tasted different than usual. The cans were sent to McKinney Specialty Labs in Virginia for testing.

    “They really are misbranded and illegally on the market,” Dr. Roxana Weil, chief regulatory science officer at McKinney, said. The tested product only contained 4.5mg of nicotine, contrary to the 6mg advertised, and additionally contained six methyl nicotine, an additive that should not have been in there. The lab only tested for nicotine, so it’s unclear what else could be in the counterfeit product.

    Dr. Willie McKinney, CEO of McKinney, said, “It was a little bit of a surprise to see six methyl nicotine simply because it’s manufactured. It’s man-made.”

    Representatives from Philip Morris International, the makers of Zyn, and the store owner believe the counterfeit products likely came from a distributor.

    “Our findings are that these are produced from overseas,” said Brian Weinhaus, director for illicit trade at PMI. “They are not produced in the United States.”

  • Finland Seizes 10M Cigarettes in Transnational Network Case

    Finland Seizes 10M Cigarettes in Transnational Network Case

    Finnish Customs has uncovered a large-scale cigarette smuggling operation involving more than 10 million cigarettes illegally brought into the country, with unpaid import duties exceeding €3.5 million, according to the Helsinki Times. Authorities said the cigarettes were transported using regular logistics channels in a way that closely mimicked legitimate cargo operations. The shipments were ordered, collected, and stored through standard delivery procedures to conceal their illicit nature.

    “The pick-up, transport and storage of illegal goods was ordered just as in a legal delivery,” said Janne Mikkonen, the customs officer leading the investigation. “In this case, all of the imported cigarettes were brought in by the same driver, who is one of the suspects and remains in pre-trial detention.”

    The case is linked to a broader criminal investigation that began last autumn that has grown into a transnational case involving multiple suspects and law enforcement agencies. Four suspects from Baltic countries are currently in custody in Finland, and additional arrests have been made in Estonia and Latvia, where several individuals are being held in connection with the operation. Customs officials have not ruled out further arrests and say the investigation is ongoing. The operation is considered part of an organized network that exploited legal transport systems to distribute untaxed tobacco products across borders.

  • South Africa: Corruption and Illicit Trade Threaten Economic Stability

    South Africa: Corruption and Illicit Trade Threaten Economic Stability

    Philip Morris South Africa (Pty) Ltd (PMSA) welcomed the release of the 2025 Illicit Trade Environment Index by the Transnational Alliance to Combat Illicit Trade (TRACIT), a global benchmark report aimed at providing an update on the set of legal, regulatory and policy recommendations designed to strengthen the fight against illicit trade around the world.

    The Index ranks 158 countries based on their structural resilience to illicit trade—across sectors including tobacco, alcohol, pharmaceuticals, digital commerce, and fast-moving consumer goods—and highlights how systemic challenges such as gaps in enforcement and regulatory inconsistencies can contribute to the growth of the global black market. South Africa ranks 60th out of 158 countries, indicating moderate resistance to illicit trade, but with notable vulnerabilities in areas such as supply chain control and enforcement capacity.

    “Illicit trade is not a victimless crime. It deprives the government of critical revenue, fuels organized crime, and puts legitimate businesses at a disadvantage,” said Philippe Van Gils, Director of Illicit Trade Prevention at Philip Morris International. “The TRACIT Index reminds us that a comprehensive approach is required, one that addresses corruption, strengthens enforcement, and ensures regulatory frameworks are both appropriate and effectively implemented.”

    PMSA echoed TRACIT’s call for evidence-based and risk-proportionate regulation. “In the tobacco sector, high excise taxes and overly restrictive product policies can unintentionally incentivise consumers to turn to unregulated, illicit alternatives,” the company said.

    “Policies must be crafted with the real-world impact in mind,” Van Gils said. “Excessive taxes on cigarettes without access to scientifically substantiated less harmful, affordable, and legal alternatives merely encourage the illicit market. A risk-based taxation model, where smoke-free products like heated tobacco are taxed significantly lower than cigarettes, can encourage adults who smoke to switch to better smoke-free alternatives.”

    PMSA supports TRACIT’s multi-pronged policy roadmap to improve countries’ ability to detect, deter, and dismantle illicit trade operations. PMSA is urging the South African government and private sector stakeholders to prioritise the following:

    •             Crafting a national anti-illicit trade strategy, integrating smart tax policies, robust regulatory enforcement, and corruption safeguards;

    •             Strengthening border control and customs capacity, particularly at high-risk points such as ports and Free Trade Zones;

    •             Securing supply chains with digital track-and-trace systems and enhanced due diligence requirements for manufacturers and logistics providers;

    •             Enhancing cooperation between government, law enforcement, and the private sector, both nationally and regionally;

    •             Educating consumers on counterfeit and smuggled products.

    “Illicit trade networks are complex, well-funded, and increasingly digital,” said Van Gils. “It’s no longer enough to raise taxes or regulate products, we need modern enforcement tools, better online regulation, and a serious crackdown on corruption.”

  • Maldives’ Customs Seize 13.6M Cigarettes as Illicit Market Thrives

    Maldives’ Customs Seize 13.6M Cigarettes as Illicit Market Thrives

    Custom officials in the Maldives seized 13.6 million cigarettes at a sea cargo terminal worth MVR 122 million ($7.9 million), officials said. Inspectors found 1,360 cases of cigarettes in two 40-foot containers.

    Under the law, cigarettes must be imported with a warning message label and under a special permit, but these cigarettes lacked both. Customs did not disclose the name of the company attempting to import them.

    Officials believe the illicit cigarette market in the country is thriving. Following a doubling in import duty in the Maldives, reports said detections of Manchesters, a popular smuggled brand in the region, are being made and tax revenues have plunged suddenly.

    “High taxes and revenue losses are also encouraged by international agencies in some countries, though analysts say high taxes and economic controls of all kinds encourage disrespect for the law and corruption,” Economy Next wrote, claiming duties from cigarette imports in Maldives dropped from MVR 100 million ($6.5 million) to MVR 5 million ($325,000). “There have been some anecdotes suggesting that Maldives imports are smuggled to third countries, like Sri Lanka, through what some euphemistically call the ‘muhuda meda market’ (the market in the middle of the sea).”

  • Australian State Ups Penalties for Illicit Tobacco 

    Australian State Ups Penalties for Illicit Tobacco 

    Australia’s New South Wales government has introduced major reforms that are expected to be phased in by July 1 to combat illicit tobacco sales. They include a new licensing scheme for retailers and significantly increased penalties for offenders. NSW is following the lead of Queensland, which recently enacted similar measures.

    Under NSW’s new laws, businesses will need to obtain a tobacco retailing license or face fines of up to A$220,000 ($140,000) for corporations and A$44,000 ($28,000) for individuals. Retailers with a current Retailer Identification Number (RIN) will receive information on how to apply for a license. 

    Heavier penalties are now in effect for offenses such as selling single cigarettes or in packs of less than 20, tobacco products without health warnings, or using prohibited packaging. Corporations caught committing these offenses face fines of up to A$770,000 ($493,000), while individuals can be fined A$154,000 ($98,600). 

    The new laws have also strengthened penalties for both individuals and corporations caught selling tobacco products to minors. Individuals can be fined up to A$22,000 ($14,000) for their first offense and A$110,000 ($70,400) for subsequent offenses, while corporations face fines of up to A$110,000 for a first offense and A$220,000 for further offenses.

  • Thailand: Vape Users Can be Charged with Receiving Smuggled Goods 

    Thailand: Vape Users Can be Charged with Receiving Smuggled Goods 

    The Thai government will take tougher action against e-cigarette users, who can now be charged with receiving smuggled products, deputy government spokesman Anukul Prueksa-anurak said. The government will step up its suppression efforts of e-cigarettes and related products, prosecuting not only smugglers and distributors but now also the users. 

    Under the Customs Act, the offense carries a jail term of up to five years and/or a fine equivalent to four times as much as the prices of smuggled products plus any duty. E-cigarettes are illegal in Thailand, but that has not stopped them from being openly sold, even in areas near schools, leading to an alarming increase in vaping among young people. The recent hospitalization of teens with lung damage has drawn further attention to the problem.

    Anukul said the percentage of vape users among people aged 15-29 years rose from 5.8% in 2019 to 12.2% in 2024.

    Prime Minister Paetongtarn Shinawatra recently ordered a serious crackdown on e-cigarettes, particularly online sales channels. Anukul said that in the two months since the crackdown began, sales and the number of e-cigarette users had dropped by more than 80%.

  • 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).