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Tag: illicit

  • NYC Charges 12 Distributors in Largest Vape Sting in State History

    NYC Charges 12 Distributors in Largest Vape Sting in State History

    New York City carried out the biggest criminal vape enforcement action in its history, resulting in more than a dozen arrests and nearly 40 criminal charges, Governor Kathy Hochul announced on September 3. The crackdown, led by the New York State Department of Health and State Police, targeted businesses accused of illegally selling and distributing vapor products across the state.

    Authorities said many of the seized products were disposable e-cigarettes and flavored e-liquids that are especially appealing to youth. Some devices featured bright packaging, digital display screens, and designs resembling smartphones or video games, raising additional concerns about their appeal to minors.

    Companies caught up in the operation include Shindler Distribution (Vaporush), ePuffer, Vape4Style, Beyond Vape, NYC Glass 718, Vaperdudes, and Shinnecock Vape Shop. “These companies built their business models around breaking New York’s laws and targeting our kids—now we’re holding them accountable,” Hochul said, stressing that the state will continue to pursue offenders aggressively.

  • China’s North Korean Smuggling Problem Not Gone Yet

    China’s North Korean Smuggling Problem Not Gone Yet

    While a report from Daily NK last week said China’s crackdown on smuggled cigarettes from North Korea ground the illegal activities to a halt, a story yesterday (August 26) from Radio Free Asia (RFA) suggests otherwise. Smugglers and traders told the news outlet that the combination of surging demand and lenient penalties (compared to other contraband) makes the trade highly profitable.

    Residents in North Korea’s Yanggang province told RFA that the cross-border trade, which began about two years ago, has expanded sharply in recent months. Smugglers move 20–50 boxes per trip, each containing 500 packs, earning around 50 yuan ($8) profit per box.

    While legally imported North Korean brands such as Chosun are sold mainly as pricey tourist souvenirs, smuggled cigarettes are mostly in unmarked packaging and then rebranded by Chinese manufacturers in Jilin province and sold as domestic products. North Korean cigarettes cost as little as 2,500–3,500 won ($0.36–0.50) per pack, far cheaper than Chinese brands. According to RFA, factories such as Korea Sonbong General Corporation and Paeksan Cigarette Company supply the bulk of production near the border.

    China, home to more than 300 million smokers, consumes about one-third of the world’s cigarettes, making the black market highly lucrative. Sources say the smuggling trade is expected to keep growing due to the low cost of North Korean tobacco and the relatively light punishments for offenders.

  • Malaysian Vapers Alliance Warns Ban Risks Fueling Illegal Market

    Malaysian Vapers Alliance Warns Ban Risks Fueling Illegal Market

    The Malaysian Vapers Alliance (MVA) cautioned that uncertainty over state and potential nationwide vape bans undermines the Control of Smoking Products for Public Health Act 2024 (Act 852) and drives consumers toward illegal channels. MVA president Khairil Azizi Khairuddin said a recent survey of 641 consumers found 74% fear bans will expand the illicit market, while 80% worry unregulated products could be unsafe. “Prohibition, in any form, is not the answer,” he said, urging consistent enforcement of Act 852 instead of new restrictions.

    The survey showed 83% of respondents were aware of the law’s implementation in October 2024, and 68% preferred buying regulated products. Yet MoH data indicates legal options are shrinking, with registered vape brands plunging from 3,200 before the law to 390 today. Khairil warned that crackdowns on illegal sales, including drug-laced liquids, prove non-compliant products stem from illicit trade, not regulated businesses.

  • Philippines Facing $720M Loss from Illicit Tobacco Trade

    Philippines Facing $720M Loss from Illicit Tobacco Trade

    The Philippine Tobacco Institute (PTI) warned that the proliferation of illicit cigarettes is costing the government over ₱40 billion ($720 million) annually in lost excise taxes while undermining public health by making cheap tobacco more accessible, especially to minors. PTI president Jericho Nograles said these unregulated products evade taxes, use expired or fake BIR stamps, and fail to meet quality standards, exposing consumers to health risks. The group urged the public to buy only cigarettes with valid tax stamps and report products sold below the legal price floor.

    Japan Tobacco International Philippines said high taxes have widened the price gap, driving demand for smuggled products. Meanwhile, the Bureau of Internal Revenue has filed 75 tax evasion cases worth ₱711.3 million ($12.8 million) against vape retailers and is pushing for expanded powers to shut down violators.

  • Queensland Seizes 45M Cigarettes, 350K Vapes in Black Market Crackdown

    Queensland Seizes 45M Cigarettes, 350K Vapes in Black Market Crackdown

    Queensland Health (Australia) seized 45 million illegal cigarettes, 350,000 vapes, and over six tons of loose-leaf tobacco since November 2024, as part of a statewide crackdown on the illicit tobacco trade. Authorities say new laws introduced in May have strengthened penalties and enforcement powers, aiming to dismantle the growing illicit tobacco network.

    The surge in black market activity comes despite recent government efforts to tighten enforcement. A 2024 Brisbane Times investigation found widespread illegal sales across Brisbane, with foreign brands like Manchester, Double Happiness, and ESSE openly sold at half the price of legal products.

  • Hong Kong Customs Being Overwhelmed by Smuggled Cigarettes

    Hong Kong Customs Being Overwhelmed by Smuggled Cigarettes

    Hong Kong Customs reported a sharp rise in cigarette smuggling this year, seizing 200 million illicit cigarettes worth HK$1 billion ($130 million) in the first five months, a fourfold increase from the same period in 2024.

    Customs Commissioner Chan Tsz-tat attributed the surge to well-organized smuggling networks exploiting cross-border travel. Last year saw about 19,000 smuggling cases by travelers; this number is expected to surpass 30,000 in 2025.

    To combat the problem, customs plans to intensify efforts to dismantle the entire smuggling supply chain—from transportation to retail—and increase awareness campaigns at key border crossings. Under Hong Kong law, travelers are allowed to bring in only 19 cigarettes duty-free per person.

    In addition, the agency faces a significant backlog in disposing of seized narcotics, with over 100 tons in storage. Current destruction processes could take up to 35 years, prompting authorities to explore faster methods, including streamlined procedures and a dedicated armed escort team.

    Hong Kong Customs is also collaborating with mainland e-commerce platforms like Taobao and Pinduoduo to block sales and shipments of banned goods, although differing laws between Hong Kong and mainland China present ongoing challenges.

  • Indonesia: Two Arrested for Making Narcotic-Laced Vapes in Apartment

    Indonesia: Two Arrested for Making Narcotic-Laced Vapes in Apartment

    Two people were arrested in North Sumatra, Indonesia, for allegedly operating an illegal drug lab that produced vape liquids infused with narcotics. Acting on a public tip, police raided an apartment and uncovered a makeshift factory that was producing up to 300 narcotic-laced vape cartridges per day, each selling for Rp 5 million ($305).

    North Sumatra Police Narcotics Division Chief Sr. Comr. Jean Calvijn Simanjuntak said police seized 2,965 cartridges, along with raw materials, solvents, flavoring agents, and sweeteners used in production.

    Both suspects were reportedly repeat drug offenders and are believed to have been running the illegal lab for at least six months.

  • Drug Gangs Hijacking Vape for Narcotics

    Drug Gangs Hijacking Vape for Narcotics

    Public safety must focus on syndicates, not legal retailers

    Former Sarawak State Police Chief Datuk Dr Yusoff Nook called for a sharper distinction between drug crimes and the legitimate vape industry, following reports that investigated the widespread online sales of synthetic drug-laced vape products in Malaysia.

    In the investigation, it was found that illicit vape liquids laced with dangerous substances like methamphetamine, syabu, and ketamine were being sold openly on social media and e-commerce platforms outside any regulatory reach and entirely separate from licensed retailers. These products are disguised as flavored vape, often in colorful packaging that appeals to younger consumers, and are traded via anonymous sellers through private messaging and courier services.

    “These are not rogue retailers or irresponsible shop owners,” Nook said. “These are organized drug traffickers—sophisticated, transnational, and criminal in nature. They are merely using vape as a new delivery mechanism. But the issue is not with vape, the issue is drugs. At its core, this remains a drug crime, and it must be treated as such.

    “The recent calls for state-level vape bans are misdirected, as they do not address the real source of harm. The investigation makes it clear: these products are not sold by licensed players. They’re sold online by criminals operating in the shadows. A state ban on vape shops won’t stop this. If anything, it punishes the visible and regulated segment of the market while doing nothing to touch the underground networks.”

    Nook said that the legitimate vape industry is now governed under the Control of Smoking Products for Public Health Act 2024 (Act 852), which imposes strict requirements, including product registration, price approvals, and retail licensing.

    “Licensed players are complying,” he said. “They are subject to inspections and oversight. The ones flooding our streets and social media with narcotic vape? They are not part of that system. They are traffickers. Let’s stop conflating legal vaping with narcotics. This is a criminal abuse of a product, not a failure of regulation or industry.”

    Nook urged authorities to act with precision, using tools like the Dangerous Drugs Act 1952, Anti-Money Laundering Act 2001, stronger criminal enforcement, targeted raids, and cross-border intelligence sharing to take down these syndicates.

    “This is a matter of national security,” Nook said. “Drugs are illegal. Drug trafficking is a serious crime in Malaysia. We must continue to treat it as such. We should be using every legal weapon available to take down drug networks, not redirecting blame onto products that criminals happen to exploit.

    “The real danger is losing focus. If we spend time penalizing the legal market, we risk giving the illegal market room to grow. The vape industry is not the threat. Drug syndicates are. Enforcement, not prohibition, is the only real answer to this threat.”

  • Philip Morris Supports India’s Crackdown on Illicits

    Philip Morris Supports India’s Crackdown on Illicits

    On World Anti-Counterfeiting Day, Philip Morris International’s (PMI) India affiliate, IPM India, reinforced its commitment to combat illicit tobacco trade, protect government revenue, and uphold product integrity. The pledge aligns with India’s rollout of pack-level track and trace (T&T) technology, aimed at identifying and curbing counterfeit tobacco products.

    India, the fourth-largest illegal cigarette market globally, sees smuggled cigarettes make up 25% of its domestic market, according to PMI estimates. The company emphasized the critical need for stronger enforcement and collaboration to address the issue, which undermines public health, economic stability, and national security.

    Navaneel Kar, managing director of IPM India, praised the government’s T&T initiative, stating it will enhance transparency and enforcement. PMI says it has implemented T&T systems in over 140 countries, including the EU and GCC states, with positive outcomes in reducing illicit trade.

    Rodney Van Dooren, PMI’s Head of Illicit Trade Prevention for Asia Pacific, called for regional cooperation, noting India’s leadership role and growing influence in tackling counterfeit goods.

  • Thai Police Raid Illicit Vape Facility

    Thai Police Raid Illicit Vape Facility

    Thai police raided a large-scale illegal e-cigarette manufacturing facility this past weekend in the Khu Khot subdistrict, seizing more than 21,000 e-cigarette devices and arresting 29 suspects. Officers stormed a three-story commercial building in Lam Luk Ka district, Pathum Thani Province, which had been transformed into a covert production hub. Behind the main office and worker accommodation, police discovered a sprawling three to four rai (4,800 to 6,400 square meters) factory producing disposable and refillable e-cigarettes.

    Police confiscated 6.1 million baht ($189,000) of illegal products, along with assembly tools, sealing machines, and e-liquid filling equipment. Authorities said the factory began illegal production in early 2025, and had recently begun transitioning from disposable to refillable models, and was in the process of installing a conveyor-belt system to boost output.