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Cigarette Smuggling

Standardised packaging of tobacco products in Australia

Jul 18th, 2014
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Early evidence about the predicted unintended consequences of standardised packaging of tobacco products in Australia: a cross-sectional study of the place of purchase, regular brands and use of illicit tobacco

Abstract

Objectives

To test for early evidence whether, following the standardisation of tobacco packaging, smokers in Australia were—as predicted by the tobacco industry—less likely to purchase from small mixed business retailers, more likely to purchase cheap brands imported from Asia and more likely to use illicit tobacco.

Design Serial cross-sectional population telephone surveys in November 2011 (a year prior to implementation), 2012 (during roll-out) and 2013 (a year after implementation).

Setting/participants Smokers aged 18 years and over identified in an annual population survey in the Australian state of Victoria (2011: n=754; 2012: n=590; 2013: n=601).

Main outcome measures

Changes between 2011 and 2013 in: proportions of current smokers who purchased their last cigarette from discount outlets such as supermarkets compared with small mixed business retail outlets; prevalence of regular use of low-cost brands imported from Asia and use of unbranded tobacco.

Results

The proportion of smokers purchasing from supermarkets did not increase between 2011 (65.4%) and 2013 (65.7%; p=0.98), and the percentage purchasing from small mixed business outlets did not decline (2011: 9.2%; 2012: 11.2%; p=0.32). The prevalence of low-cost Asian brands was low and did not increase between 2011 (1.1%) and 2013 (0.9%; p=0.98). The proportion reporting current use of unbranded illicit tobacco was 2.3% in 2011 and 1.9% in 2013 (p=0.46). In 2013, 2.6% of cigarette smokers reported having purchased one or more packets of cigarettes in non-compliant packaging in the past 3 months; 1.7% had purchased one or more packets from an informal seller in the past year.

Conclusions

One year after implementation, this study found no evidence of the major unintended consequences concerning loss of smoker patrons from small retail outlets, flooding of the market by cheap Asian brands and use of illicit tobacco predicted by opponents of plain packaging in Australia.

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SECURE MARKING, AUTHENTICATION, TRACKING AND TRACING TO ASSIST CUSTOMS

Jul 1st, 2014
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Combating Illicit Trade in Tobacco Products

Jul 1st, 2014
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Combating Illicit Trade in Tobacco and Alcohol Products

Jul 1st, 2014
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Australia: a cross-sectional study of the place of purchase, regular brands and use of illicit tobacco

Jun 20th, 2014
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Are the tobacco industry’s claims about the size of the illicit cigarette market credible? The case of South Africa

Jun 11th, 2014
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Contrasting academic and tobacco industry estimates of illicit cigarette trade: evidence from Warsaw, Poland

May 23rd, 2014
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http://www.ncbi.nlm.nih.gov/pubmed/23945214

Abstract

OBJECTIVE:

To compare two different methods for estimating the size of the illicit cigarette market with each other and to contrast the estimates obtained by these two methods with the results of an industry-commissioned study.

METHODS:

We used two observational methods: collection of data from packs in smokers’ personal possession, and collection of data from packs discarded on streets. The data were obtained in Warsaw, Poland in September 2011 and October 2011. We used tests of independence to compare the results based on the two methods, and to contrast those with the estimate from the industry-commissioned discarded pack collection conducted in September 2011.

RESULTS:

We found that the proportions of cigarette packs classified as not intended for the Polish market estimated by our two methods were not statistically different. These estimates were 14.6% (95% CI 10.8% to 19.4%) using the survey data (N=400) and 15.6% (95% CI 13.2% to 18.4%) using the discarded pack data (N=754). The industry estimate (22.9%) was higher by nearly a half compared with our estimates, and this difference is statistically significant.

CONCLUSIONS:

Our findings are consistent with previous evidence of the tobacco industry exaggerating the scope of illicit trade and with the general pattern of the industry manipulating evidence to mislead the debate on tobacco control policy in many countries. Collaboration between governments and the tobacco industry to estimate tobacco tax avoidance and evasion is likely to produce upward-biased estimates of illicit cigarette trade. If governments are presented with industry estimates, they should strictly require a disclosure of all methodological details and data used in generating these estimates, and should seek advice from independent experts.

Availability of illicit tobacco in small retail outlets before and after the implementation of Australian plain packaging legislation

Apr 10th, 2014
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http://tobaccocontrol.bmj.com/content/early/2014/04/10/tobaccocontrol-2013-051353.abstract

Abstract

Objective

We aimed to assess change in the availability of illicit tobacco in small mixed business retail outlets following the December 2012 introduction of plain packaging in Australia.

Methods

303 small retail outlets were visited in June and September 2012 (baseline months), and in December 2012 and February, April and July 2013. Fieldworkers requested a particular low-cost brand of cigarettes and then pressed the retailer for an ‘even cheaper’ brand. The cheapest pack of cigarettes offered was purchased and later examined to assess any divergence from prescribed Australian packaging regulations. The price paid was compared with tax liability and recommended retail price for the particular brand and pack size. In a sub-set of 179 stores, fieldworkers then asked the retailer about availability of unbranded (chop-chop) tobacco.

Results

Thirteen (2.2%) of 598 packs purchased pre-plain packaging were either non-compliant with Australian health warnings and/or suspiciously priced. Four packs (1.3%) of 297 met either or both criteria in the December implementation month, and five (0.6%) of 878 did so in the three collection months following implementation. Chop-chop was offered upon enquiry on 0.6% (n=2) of 338 occasions prior to implementation, 0.6% (n=1) of 170 occasions in the December 2012 implementation month, and 0.6% (n=3) of 514 occasions postimplementation. The likelihood of a ‘positive’ response (either an offer to sell or information about where unbranded tobacco may be purchased) did not differ across preimplementation, during-implementation and postimplementation waves.

Conclusions

Overall, packs judged likely to be illicit were sold in response to requests for cheapest available packs on fewer than one percent of occasions. Offers to sell unbranded tobacco were rare. No change in availability of illicit tobacco was observed following implementation of plain packaging.

Tobacco industry manipulation of data on and press coverage of the illicit tobacco trade in the UK

Mar 10th, 2014
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Jolly, tobacco front smokes public again

Feb 6th, 2014
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It is an open secret that tobacco firms deliberately aid cigarette smuggling, for instance, by manufacturing excess cigarettes to flood the illicit market, primarily to keep their products at affordable pricing on the black market. That did not stop tobacco-funded campaigner, Richard Jolly, from trying to smoke the public regarding the illicit tobacco situation; in fact, he even accuses the Hong Kong police and customs of supposed inaction.

from Qi Luo of the Standard:

Cops accused in illicit tobacco poll

Seven in 10 people say it is easy for teenagers and children to get hold of illicit cigarettes, a poll shows.

Hong Kong United Against Illicit Tobacco, which is supported by Philip Morris Asia among others, also accused police of turning a blind eye to the sale of smuggled cigarettes in the territory.

The group commissioned market research firm Ipsos to survey 1,006 people last November and December.

It found 70 percent believed it was “fairly easy or very easy” for people under 18 to access illegal tobacco products.

About 64 percent agreed that black market cigarettes contributed to youth smoking due to lower prices and ease in buying without age verification.

Social worker Harris Har Man-kwong of Hong Kong Christian Service said illicit cigarettes are much cheaper, making it attractive for teenage smokers to find a way to buy them.

Undersecretary for Food and Health Sophia Chan Siu-chee said in a TVB interview the number of Primary Four to Six students who smoke is increasing.

“We’re worried,” Chan said. “Most of current smokers started when they were teenagers.”

Chan said the Department of Health’s Tobacco Control Office will work with the Po Leung Kuk to fund non-smoking education at its kindergartens.

The Hong Kong Council on Smoking and Health urged the government to raise the tobacco tax up to 100 percent in the 2014-15 fiscal year, making the price of a cigarette pack HK$84.

It believes high tobacco duty will prevent youngsters from trying smoking for the first time.

The Ipsos survey, however, showed 90 percent believe the government should curb illicit cigarettes. Hong Kong United Against Illicit Tobacco convener and former policeman Robin Jolly said police have little incentive to crack down on the sale of smuggled cigarettes. He urged the government to effectively tackle the illicit cigarette trade before introducing any tobacco tax increase as it might inadvertently drive smokers to buy illegal cigarettes.

“We have to contain the problem before we consider raising tax and just making the problems bigger,” Jolly said.

A study released by Oxford Economics last year showed that more than 35 percent of cigarettes consumed in Hong Kong in 2012 were illicit. It estimated 1.8 billion illicit cigarettes, on which duty was not paid, cost the government HK$3.3 billion in lost tax revenue.

6 Feb 2014

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