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Tag: illicit

  • 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.

  • Vietnam Told Gradual Tax Hike Will Prevent Illicit Tobacco Surge 

    Vietnam Told Gradual Tax Hike Will Prevent Illicit Tobacco Surge 

    Vietnam is reviewing new tax policies for tobacco products, with experts recommending a gradual tax increase every two years instead of higher annual hikes. The Vietnam Tax Advisory Association (VTCA) has raised concerns that sharp, sudden tax hikes may backfire, leading to higher illicit cigarette trade and reduced tax revenue.

    According to the draft law, the government plans to impose a hybrid tax system on tobacco products, combining the current 75% ad valorem tax with a specific absolute tax increase on each pack of cigarettes. The VTCA submitted its recommendations for two proposed scenarios:

    The first scenario suggests an annual increase of VND 2,000 ($0.08) per pack starting in 2026, leading to a total tax hike of VND 10,000 ($0.40) per pack by 2030.

    The second scenario proposes a VND 5,000 ($0.20) increase in 2026, followed by an additional VND 1,000 ($0.04) increase per year from 2027 to 2029, also culminating in a total increase of VND 10,000 ($0.40) per pack by 2030.

    VTCA has urged policymakers to be cautious, citing examples from other countries where abrupt tax increases led to unintended consequences, mainly that smoking rates didn’t drop as consumers turned to cheaper illicit products.

    If this proposal is not accepted, VTCA has recommended that lawmakers adopt the first scenario, which calls for an annual increase of VND 2,000 ($0.08) per pack starting in 2026, reaching VND 10,000 ($0.40) by 2030.

  • Hong Kong Officials Seize $3.8M in Illicit Products

    Hong Kong Officials Seize $3.8M in Illicit Products

    Today (March 7), Hong Kong customs officers seized more than 6 million illicit cigarettes and heated tobacco products worth more than HK$29 million ($3.8 million) in two separate operations.

    In one operation, two men were arrested with 6 million cigarettes that are relatively unpopular in the area, stored in a truck and warehouse.

    “It is believed that the products would later be exported to other countries,” said Chan Sing-lung, a senior investigator of Customs’ Revenue Crimes Investigation Bureau. “But we do not rule out the possibility that some might get into the local illicit cigarette market for sale.”

    Earlier in the morning, a mainland man was arrested with 90,000 illegal cigarettes and 110,000 illicit heated tobacco products. Another 140,000 duty-not-paid cigarettes from Japan and alternative smoking products were found in his hotel room, together with a large number of empty bags for Japanese duty-free goods.

    Officials said the contraband was part of a larger smuggling operation from Japan.

    “Our investigation shows the group took advantage of air passengers to bring illicit tobacco products into the city, store them in hotel rooms and then distribute them to customers,” said Wong Wing-yuen, a senior investigator of the Customs and Excise Department.

    In the past half month, 13 men and eight women were arrested, mostly mainland tourists traveling from Japan. They were involved in 20 cases of 600,000 untaxed cigarettes and 240,000 alternative tobacco products, with a total market value of HK$4 million ($520,000).

  • Sri Lanka Destroys $4 M in Illicit Cigarettes  

    Sri Lanka Destroys $4 M in Illicit Cigarettes  

    Sri Lankan customs officials destroyed $4 million worth of illegally imported foreign cigarettes this week in Colombo. The cigarettes were confiscated in 2018, 2022, and 2024. According to customs spokesman Seevali Arukgoda, the authorities seized 8.7 million cigarettes during those three years.

    Arukgoda said the agency plans to invest in modern equipment powered by artificial intelligence to improve container scanning and enhance contraband detection.

  • Swiss Airports See All-Time High in Cigarette Smuggling 

    Swiss Airports See All-Time High in Cigarette Smuggling 

    Cigarette smuggling at Swiss airports increased by nearly 28% in 2024, with the majority of the illicit products coming from Turkey, Egypt, Ethiopia, and the Republic of Congo, with most apparently intended to be sold in France. Customs officials discovered 880,000 undeclared cigarettes last year, up from 690,000 in 2023.

    More than 700,000 undeclared cigarettes were seized at Geneva Airport. All foreign couriers stopped while traveling were fined, and those found to be commercial smugglers were banned from entry. Unpaid fines were converted to days in prison for smugglers.

    As examples, customs officials pointed to one day when a 35-year-old Egyptian man was caught with 44,840 cigarettes (220 cartons), and later that day a 25-year-old Greek man had 47,360 cigarettes (235 cartons) in his luggage.