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Tag: illicit

  • Poland Dismantles Armenian Crime Gang Running Illegal Cigarette Factories

    Poland Dismantles Armenian Crime Gang Running Illegal Cigarette Factories

    Polish police and border guards said they dismantled a major organized crime group running three illegal cigarette factories in the Mazowieckie and Łódzkie regions. The coordinated raids led to the arrest of nine Armenian citizens and six others, with authorities seizing more than 12.7 million counterfeit cigarettes, 25 tons of tobacco, and a complete production line. Officials estimate the illicit goods were worth over 28 million zloty ($7.6 million).

    Prosecutors in Łódź charged 14 suspects with operating an organized criminal group, producing illegal tobacco products, and committing tax crimes. Four face additional charges for storing or transporting cigarettes without excise stamps. While one suspect was released under police supervision, the remaining 14 were remanded in custody for three months as the investigation continues.

    Authorities say the operation prevented an estimated €12.5 million in lost excise and VAT revenue. The crackdown comes amid growing concerns over Poland’s black market for tobacco, which accounted for 4.3% of total cigarette consumption in 2024, costing the state €312 million in lost tax revenue, according to a report commissioned by Philip Morris International.

  • Ispire, IKE Tech Applaud FDA’s Illicit Vape Market Mandate

    Ispire, IKE Tech Applaud FDA’s Illicit Vape Market Mandate

    Ispire Technology Inc. and IKE Tech LLC issued statements welcoming the U.S. FDA’s newly funded mandate to crack down on the illicit vape market, following the passage of a continuing resolution signed by President Trump. The legislation directs the FDA to allocate at least $200 million toward electronic nicotine delivery system enforcement, including $2 million for a multi-agency task force with the DOJ and DHS to block illegal imports.

    IKE Tech President John Patterson called the strengthened enforcement a critical response to a market where “nine out of 10 vapes on shelves are illegal.” He said current border controls and tracking systems are failing, and highlighted the company’s development of blockchain-secured authentication tags and AI-driven age-verification tools to help regulators and manufacturers instantly verify product legitimacy.

    Ispire co-CEO Michael Wang said enforcement must be paired with proactive technology to protect consumers and level the playing field for compliant companies. He noted that Ispire and IKE Tech have submitted a blockchain-enabled age-verification System-on-a-Chip to the FDA as part of a PMTA, offering a potential framework for secure, verifiable, and interoperable compliance across the U.S. vape market.

  • Hong Kong Customs Seizes 240,000 Illicit Cigarettes in Raid

    Hong Kong Customs Seizes 240,000 Illicit Cigarettes in Raid

    On Wednesday (November 12), Hong Kong Customs raided a suspected illicit cigarette storage center in Kwai Chung, seizing approximately 240,000 cigarettes with an estimated market value of HK$1.1 million ($140,000) and potential duties of HK$790,000 ($103,000). Customs investigation revealed that the syndicate used hotel rooms as temporary storage, employing an “ant-moving-home” distribution method to evade detection. During the raid, officers intercepted 80,000 cigarettes from four men and later seized an additional 160,000 cigarettes from a hotel room, arresting a fifth individual. The suspects have been charged under the Dutiable Commodities Ordinance and are scheduled to appear at West Kowloon Magistrates’ Courts.

  • FDA to Allocate $200M Toward Combating Illicit Vapes

    FDA to Allocate $200M Toward Combating Illicit Vapes

    As part of the continuing resolution passed by Congress and signed yesterday (November 12) by US President Donald Trump to reopen the government, the Food and Drug Administration (FDA) will be required to allocate at least $200 million of its $712 million in user fees toward enforcing regulations on electronic nicotine delivery systems (ENDS). Of this amount, $2 million will support a multi-agency task force, including the Justice Department and Homeland Security, aimed at cracking down on illegal ENDS products imported from China and other countries.

    The FDA is also required to update its 2020 ENDS enforcement guidance within one year to include flavored disposable vapes and clarify the definition of disposable ENDS products. In addition, the law updates the Imports and Exports section of the Food, Drug, and Cosmetic Act to include tobacco products, strengthening the FDA’s authority to regulate their import alongside food, drugs, devices, and cosmetics.

    The agency must provide semi-annual reports to Congress on efforts to remove illegal ENDS products from the market, with the first report due within 180 days of enactment (November 12). The FDA is also expected to submit a report detailing its work to educate retailers on which products are legally allowed for sale.

  • South Australia Closes 100 Stores for Selling Illicit Tobacco, Vapes

    South Australia Closes 100 Stores for Selling Illicit Tobacco, Vapes

    Since June 5, South Australia has issued 100 28-day closure orders to stores selling illicit tobacco and vapes, seizing products valued at approximately A$50 million ($32.5 million), including 41 million cigarettes, 140,000 vapes, and 13,585 kg of loose tobacco. The closures are part of a state-led crackdown, supported by a A$16 million ($10.4 million) illicit tobacco taskforce targeting both metropolitan and regional outlets. Two long-term closures have already been issued, with five more pending in the Magistrates Court.

    The Malinauskas Government emphasized that the crackdown disrupts organized crime networks and enforces penalties of up to A$6.6 million ($4.3 million) for large-scale illicit sales, while landlords knowingly allowing such sales can face fines up to A$50,000 ($32,500).

  • UK Crackdown Seizes Millions in Illegal Cigarettes, Tobacco, and Vapes

    UK Crackdown Seizes Millions in Illegal Cigarettes, Tobacco, and Vapes

    More than 4.5 million illegal cigarettes, 600kg of illicit tobacco, and 111,000 illegal vapes have been seized in a nationwide crackdown on criminal activity across UK high streets, officials said. The month-long Operation Machinize 2, led by the National Crime Agency (NCA) with police forces, HMRC, and Trading Standards, targeted businesses being used as fronts for money laundering and illicit sales. Authorities raided 2,734 premises, made 924 arrests, and seized £10.7 million in suspected criminal proceeds.

    Officials said the operation disrupted organized crime networks exploiting small shops for tax evasion and the sale of counterfeit goods. The NCA estimated the haul represents £3.4 million in unpaid duty, while counterfeit and harmful products worth £2.7 million were destroyed.

    Security Minister Dan Jarvis said the coordinated effort was part of a broader drive to “dismantle criminal networks and protect honest business owners,” while NCA officials hailed the operation as a “new standard” in joint enforcement.

    The first phase of Operation Machinize in April yielded far smaller seizures, highlighting the growing scale of illicit trade on UK high streets.

  • Study: 81% of Cigarettes in Pakistan Illegal

    Study: 81% of Cigarettes in Pakistan Illegal

    A new survey by Stop Illegal Trade (SIT) revealed that over 81% of cigarette brands sold in Pakistan lack tax stamps, exposing widespread excise duty evasion. Only 12% of brands were fully compliant, while nearly 7% appeared in both taxed and untaxed forms, suggesting the existence of a parallel illegal distribution network. The report, “The Unchecked Rise of Illicit Cigarettes in Pakistan,” also found that 47% of cigarette brands failed to display mandatory health warnings, and many were being sold below the government’s minimum retail price of Rs 162.25 ($0.57), violating national tobacco control laws.

    SIT’s spokesperson said the findings highlight “regulatory weaknesses” enabling tax evasion and black-market sales that harm both government revenue and public health. The illicit cigarette trade is estimated to make up more than half of Pakistan’s total market, causing annual revenue losses exceeding Rs 415 billion ($1.5 billion).

    SIT urged authorities to intensify retail inspections, enforce compliance, and dismantle the networks behind untaxed and non-compliant cigarette sales.

  • ASEAN Could Lose $11B to Illicit Tobacco Trade by 2028

    ASEAN Could Lose $11B to Illicit Tobacco Trade by 2028

    A policy brief by the Center for Market Education (CME) warns that Southeast Asian governments may lose more than $11 billion to illicit tobacco trade by 2028, averaging $3.7 billion annually.

    Key national losses include:

    • Malaysia: $770 million/year, nearly matching projected petrol subsidy savings.
    • Philippines: $440 million/year, exceeding its $370 million disaster preparedness fund.
    • Thailand: $560 million/year, with illicit products making up 28% of the market.
    • Indonesia: $5 billion lost across three years, with illicit trade above 10% of the market.

    CME notes these figures are conservative due to underreporting and uneven enforcement. CEO Dr. Carmelo Ferlito called for stronger cross-border collaboration, policy alignment, and transparency to reclaim lost revenue. Hayley van Loon, CEO of Crime Stoppers International, highlighted the link between illicit tobacco and organized crime, including narcotics, human trafficking, and counterfeit goods.

  • Illegal Tobacco Costs Australia Billions, Fuels Crime

    Illegal Tobacco Costs Australia Billions, Fuels Crime

    Australia’s illegal tobacco market has cost the government A$3.3 billion ($2.1 billion) in excise revenue, with organized crime controlling much of the trade, the Australian Criminal Intelligence Commission (ACIC) said in a report today (November 6). About one in five cigarettes sold is illicit, as high legal prices push consumers to cheaper alternatives, it said.

    The broader impact, including healthcare and productivity losses, totals A$4 billion ($2.6 billion) annually, with at least three deaths and 200 firebombings linked to “tobacco wars.” The ACIC said the A$4 billion estimate was “almost certainly an underestimate,” as it did not include e-cigarettes and illegal vapes.

    New South Wales Premier Chris Minns called for a federal review of excise rates, while Treasurer Jim Chalmers rejected lowering prices. Illicit tobacco is part of a growing A$82.3 billion ($53.5 billion) organized crime burden, alongside illegal vapes, according to the report.

  • Russia’s FSB Shuts Down Major Illegal Vape Supplier in Tula Region

    Russia’s FSB Shuts Down Major Illegal Vape Supplier in Tula Region

    Working in Russia’s Tula region, Federal Security Service (FSB) officers dismantled a large-scale operation in a warehouse containing counterfeit nicotine products worth over 500 million rubles ($6 million). Authorities said a 27-year-old resident organized the sale of unmarked electronic cigarettes, vapes, and liquids in violation of labeling laws. A criminal case has been opened against him for trafficking unmarked goods on a particularly large scale. The investigation continues to trace the supply network and distribution channels.