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Cigarette Smuggling

Cigarette design

http://www.scotsman.com/news/opinion/letters/cigarette-design-1-3893908

Illicit, smuggled tobacco is an issue that deserves a serious response. Unfortunately, the Tobacco Manufacturers’ Association’s (TMA) recent article (17 September) fails to deliver. It disregards reliable evidence on illicit tobacco in favour of misinformation.

Giles Roca claims that high taxes on tobacco products have “failed”. Certainly, the tobacco industry must be disappointed – scientific studies show that 
raising the price of tobacco is one of the most effective ways to reduce smoking rates.

The industry is quick to attack proposed tobacco taxation and frequently claims steep rises in illicit tobacco will follow. It isn’t true. And as a recent paper from the University of Bath put it: “Industry data on levels of illicit tobacco should be treated with extreme caution.” The industry’s sums don’t add up.

If low taxes lead to low levels of illicit tobacco, countries with the lowest tobacco tax regimes would have low levels of smuggled tobacco. This isn’t the case.

Eastern European countries such as Latvia have substantially higher rates of illicit tobacco than the UK, despite low tax. Enforcement of the law is the best way to cut the illicit tobacco trade. Mr Roca also declares that plain, unattractive cigarette packaging has caused a rise in smuggled tobacco in Australia. This is not true.

Sir Cyril Chantler’s review of the policy last year concluded that “there is no evidence of increased counterfeiting following the introduction of plain packaging in Australia”.

Even the former head of Imperial Tobacco Australia’s corporate affairs department has admitted that its predictions on illicit had proved “simply wrong”. By contrast, studies have shown that plain packaging works to deter children from starting smoking. This is an important health measure and we should not allow tobacco industry scaremongering to deflect us from implementing it.

Hong Kong Customs seize contraband tobacco worth HK$12m

Cigarette-smuggling ring stubbed out as Hong Kong Customs seize contraband tobacco worth HK$12m

http://www.scmp.com/news/hong-kong/law-crime/article/1858342/cigarette-smuggling-ring-stubbed-out-hong-kong-customs

Smuggling syndicates used different concealment methods in an attempt to evade detection. Photo: SCMP Pictures

Smuggling syndicates used different concealment methods in an attempt to evade detection. Photo: SCMP Pictures

Hong Kong Customs believes they have struck a heavy blow against a cross-border tobacco-smuggling syndicate following the seizure of HK$12 million worth of untaxed cigarettes in two operations this month.

Investigations revealed the gang mixed boxes of illicit cigarettes with other products and used goods vehicles to smuggle the contraband from Shenzhen to Hong Kong via various border crossings, according to a senior customs official.

“Upon arrival in Hong Kong, the cigarettes would have been conveyed to tobacco traffickers who sell to buyers through telephone orders,” Wan Hing-chuen, deputy head of Customs’ revenue and general investigation bureau, said today.

He said intelligence indicated the gang was one of the major cigarette-smuggling syndicates in the city.

This was revealed today after customs officers confiscated 1.9 million cigarettes on board a truck at the Man Kam To border crossing yesterday.

The consignment was found concealed inside 76 sofas when officers intercepted the truck entering the city from Shenzhen via the control point.

Customs officers show the haul.

Customs officers show the haul.

Wan said the one-metre-long sofas, which were wrapped with plastic sheets, were hidden behind more than 900 boxes of plastic and electronic goods in the innermost part of a shipping container loaded at the back of the truck.

“After suspicious images were found in an X-ray examination, officers cut open the sofas and discovered the cigarettes,” he said.

“About 120 to 130 cigarette cartons [each with 10 packets of 20 cigarettes] were hidden in the hollow centre of each sofa,” the superintendent said.

He said the contraband worth HK$5.1 million was for local consumption and the haul would have amounted to evasion of HK$3.6 million in taxes if it went undetected.

Officers arrested the truck driver, a Hong Kong man, 47, and impounded the truck. In the afternoon, he was still being held for questioning and had not been charged.

The seizure came a fortnight after customs officers at Lok Ma Chau control point arrested a lorry driver, 40, after discovering HK$7 million worth of illicit cigarettes on board his vehicle on September 1.

Wan said intelligence indicated the same syndicate was behind the smuggling of the two consignments.

The cigarettes were concealed in the back of 76 sofas.

The cigarettes were concealed in the back of 76 sofas.

“Supply of the illicit cigarettes had dwindled after the first operation [made on September 1],” he said. “Intelligence showed the syndicate tried to smuggle the second consignment into the city to meet the demand.”

He said investigations were still continuing.

According to the Customs and Excise Department, smuggling syndicates used different concealment methods in an attempt to evade detection.

“Previously, we have found fake water heaters, bogus ovens and mattresses that were used to hide contraband cigarettes,” Wan said.

He said Customs would continue stringent enforcement actions against the trade of illegal cigarettes.

JAILED: Stretford air stewardess who smuggled shisha tobacco into the UK from Dubai

http://www.messengernewspapers.co.uk/news/13712168

CTA says:

Numerous locations in Hong Kong are offering shisha smoking
There is no Government Chemist tested and registered excise paid shisha tobacco in Hong Kong
There is no record of tar or nicotine content
It stands to reason that all shisha tobaccos are either hand carried or couriered or posted into Hong Kong and no duty is paid,
no warning labels are attached on the container and all such products are ILLEGAL:
so, do something about it…………….. put the onus on the vendors and users to show their excise receipt

AN air stewardess who repeatedly smuggled shisha tobacco into the UK from Dubai has been jailed for 18 months.

Jade Kaur, from Stretford, was caught with 25kg of non-UK duty paid shisha tobacco and 3,200 cigarettes in her luggage when stopped by Border Force officers after landing at Manchester Airport in November last year – evading more than £57,000 in excise duty.

The 27-year-old was arrested and the HMRC investigation uncovered messages on her mobile phone that proved she had carried out at least a dozen similar long-haul trips while off duty.

The hauls evaded more than £57,000 in excise duty.

Kaur owned up to illegally bringing 275kg of shisha into the UK between July 2014 and November 2014 while flying in on staff-discounted tickets from Dubai, where she was based at the time, to Manchester.

Sandra Smith, Assistant Director, Fraud Investigation Service, HMRC, said: “As an air stewardess, Kaur knew exactly what she was doing was illegal, yet kept on going for months purely to line her own pockets. But now the game is up and she is paying the highest price by losing her freedom, not to mention her career.

“HMRC will not hesitate to investigate those who try to profit from defrauding honest taxpayers and businesses. If you have information about illegal smuggling activity, the transport, storage or sale of illicit tobacco, cigarettes or alcohol you should contact the customs hotline on 0800 59 5000.”

Kaur pleaded guilty at Manchester Crown Court to three counts of the fraudulent evasion of excise duty.

HK Customs detects smuggling of 7 mln HK dollars illicit cigarettes

http://www.ecns.cn/2015/09-02/179645.shtml

Xinhua Editor: Gu Liping

Hong Kong Customs detected a suspected smuggling case involving illicit cigarettes worth about 7 million HK dollars (about 900,000 U.S. dollars) with a duty potential of about 5 million HK dollars, a Customs spokesmam said here on Tuesday.

Customs officers intercepted an incoming lorry at Lok Ma Chau Control Point on Tuesday, and they found about 2.6 million sticks of suspected illicit cigarettes in 210 carton boxes after thorough inspection. A 40-year-old male driver was arrested.

The spokesman said the operation showed the effectiveness of the enforcement strategy, especially the escalated enforcement actions against smuggling activities at source.

Under the Import and Export Ordinance, smuggling is a serious offence in Hong Kong. The maximum penalty is a fine of 2 million HK dollars and imprisonment for seven years.

Asia 16 Illicit Tobacco Indicator 2014 – Philippines September 2015

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Dubai seizes 5 tonnes of bad tobacco

http://www.emirates247.com/news/emirates/dubai-seizes-5-tonnes-of-bad-tobacco-2015-08-30-1.601714

Dubai’s law enforcers seized nearly five tonnes of tobacco which do not carry dates of expiry and source of origin, newspapers reported on Sunday.

The stuff, worth around Dh500,000, was seized in raids ion 16 shops in various parts of the emirate as part of a crackdown on items that pose health hazards to the public.

Dubai’s Department of Economic Development launched the raids on many tobacco shops within a campaign to ensure they comply with local rules.

The tobacco impound at the 16 shops is used in pipes and it bags were found without expiry dates or any data on their contents or source of origin.

“We will continue these raids on tobacco and other shops because the safety of consumers is our top priority,” Ibrahim Bahzad, Director, Intellectual Property division at DED, told ‘Emarat Al Youm’ Arabic language daily.

Customs seize 920,000 illegal cigarettes in Tin Shui Wai sting

http://hongkong.coconuts.co/2015/08/24/customs-seize-920000-illegal-cigarettes-sting-tin-shui-wai

By Coconuts Hong Kong August 24, 2015

image001 (2)

Customs officers broke up a suspected illegal cigarette distribution ring in Tin Shui Wai on Saturday, arresting a 33-year-old man and seizing 920,000 cigarettes.

The goods are worth about HKD2.48 million, and would have given the government HKD1.75 million in tax revenue had they been sold legally.

image002 (3)

Customs suspected that a syndicate was using lorries to distribute illegal cigarettes to peddlers in Tin Shui Wai and Yuen Long.

The authorities believe that this particular syndicate has now been “neutralised”.

Anyone caught dealing with, selling, or buying illicit cigarettes are liable to a fine of HKD1 million and two years in prison.

Illegal cigarettes in Blackpool, Cork

source: dan linehan, irish examiner

Mr O’Reilly said there was a far higher percentage of potentially lethal illegal whites in Ireland than in Britain. He said there was some evidence to show some of these cigarettes smuggled into Ireland were later exported to Britain.

Mr Donohoe said the illegal whites were being smuggled into Ireland in containers through ports such as Dublin, Ringaskiddy, and Rosslare. It is believed the gangs are shipping in containers which each contain illegal cigarettes with a street value of €1m.

The profits are so lucrative that drug dealing gangs are increasingly turning to this illicit trade, especially as the penalties if caught are miniscule. A person found with more than €10,000 in drugs could face up to 14 years in jail. If it was €10,000 of illegal cigarettes or even more, they would probably get a fine. A jail sentence is extremely rare for cigarette smuggling.

The undercover team put all the contraband they get into evidence bags and the information they have gained during the course of their work, such as names, addresses, and phone numbers, will be passed onto the gardaí.

It is believed legitimate cigarette manufacturers, who have seen their profits tumble as a result of smuggling, will use evidence gathered by the team to lobby the Government for increased penalties for those caught with illicit cigarettes.

While they have a vested interest in a crackdown on such activity, they can also argue with some authority about the greater health risk of smoking illegal whites.

They will also point out the ease at which criminal gangs can make serious money to further their own activities and the knock-on cost this has to society, coupled with the huge loss of revenue to the State.

2 fined S$31,000 for e-cigarette offences

http://www.straitstimes.com/singapore/courts-crime/2-fined-31000-for-e-cigarette-offences

Elena Chong
Court Correspondent
elena@sph.com.sg

An engineer and a property agent who imported and sold electronic cigarettes online were fined a total of $31,000 yesterday.

Francis Chue Kar Fatt, 33, was fined $16,000, while 32-year-old property agent Zhang Zhaoming, was fined $15,000 after they each pleaded guilty to 10 charges.

Two of Chue’s charges were for obstructing an authorised officer by deleting the www.thaivape.com website and a PayPal account which housed the evidence to all the e-cigarette sales transactions .

Another four were for selling and importing e-cigarettes with Zhang.

Following online surveillance of online electronic cigarette peddlers, Health Sciences Authority officers raided the Woodlands home of Chue and his wife, Ms Rattikan Khamtong, a 29-year-old Thai national, on Jan 7, 2013, for allegedly offering e-cigarettes for sale on the website.

They seized e-cigarettes, related peripherals and SingPost receipts.

Investigations showed that Ms Khamtong instructed her husband to delete the website while officers were conducting the search. She gave him her username and password and he did it from his office laptop at his office at Land Transport Authority at Sin Ming Drive.

On July 18, 2013, when HSA officers raided Zhang’s home in Sengkang, Chue deleted the PayPal account which contained e-cigarette sales transactions from the website.

Investigations showed that despite knowing it was an offence to deal in e-cigarettes, Zhang was still keen on the business. He started the e-cigarette online business with Chue’s help sometime in June. They agreed on the terms of the business and a profit-sharing arrangement.

The court heard that the goods were ordered online and payments made via Zhang’s credit card. The e-cigarettes were sold to customers at between $55 and $110 a set.

A warrant for the arrest of Ms Khamtong was issued last month.

Both men could have been fined up to $5,000 on each charge of selling or importing. For obstruction, Chue could have been fined up to $10,000 and/or jailed for up to 12 months per charge.

Taxing question of curbs on tobacco smuggling

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