16 smuggling smuggled cigarettes · 16 smuggling smuggled cigarettes 30% or more 20% – 29% 10%...
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“…price is only one of many factors that influence smuggling rates. Other more important factors include: the tobacco
industry’s own role in facilitating smuggling; the lack of appropriate
controls on tobacco products in international trade; and the existence of
entrenched smuggling networks, unlicensed distribution, lax anti-
smuggling laws, weak enforcement and official corruption.” WHO, 2000
Between 300 and 400 billion cigarettes were smuggled in 1995, equal to about one third of all the legally imported cigarettes.
Cigarettes are the world’s most widely smuggled legal consumer product. They are smuggled across almost every national border by constantly changing routes.
Cigarette smuggling causes immeasurable harm. International brands become affordable to low-income consumers and to image-conscious young people in developing countries. Illegal cigarettes evade legal restrictions and health regulations, and while the tobacco companies reap their profits, governments lose tax revenue.
Some governments are now suing tobacco companies for revenue lost due to smuggling activities allegedly condoned by the companies. Measures needed to control smuggling should include monitoring cigarette routes, using technologically sophisticated tax-paid markings on tobacco products, printing unique serial numbers on all packages of tobaccoproducts, and increasing penalties.
Smuggling16 Smuggled cigarettes
30% or more
20% – 29%
10% – 19%
5% – 9%
1% – 4%
no data
Estimated smuggled cigarettes as percentage of domestic sales 1995
recent or currentsmuggling routeswhere known
Global smugglingNumbers of smuggled cigarettes 19936% of world cigarette sales are smuggled
Eastern Europe85 billion
Asia-Pacific85 billion
Western Europe50 billion
rest of the world98 billion
global total318 billion
REP.KOREA
TURKMEN
UZBEKISTAN
AZER
Hong KongSAR
SRI LANKA
M A L A Y S I A
C H I N A
VIET NAM
CAMBODIA
LAOPDR
THAILAND
I N D I A
BHUTAN
BANGLADESH
ISL . REP .IRAN
PAKISTAN
AFGHANISTAN
TURKEY
UAE
NEPAL
K A Z A K H S T A N
U N I T E D S T A T E SO F A M E R I C A
C A N A D A
CHADNIGER
NIGERIA
C A R
E G Y P T
SUDAN
LIBYANARAB
JAMAHIRIYA
TUNISIA
CAMEROON
EQUATORIALGUINEA
DJIBOUTI
SOMALIA
PARAGUAY
B R A Z I L
VENEZUELA
COLOMBIA
PANAMA
ECUADOR
PERU
ARGENTINA
CHILE
PHILIPPINES
I N D O N E S I A
R U S S I A N F E D E R A T I O N
SINGAPORE
MYANMAR
GHANATOGO
BURKINA FASO
CYPRUSLEBANON
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Montréal
Andorra
Port Said
Maradi
Dubai
Encarnation
Iquique
Vladivostok
Aruba
ST. MAARTEN
GUYANA
ITALY
UKRAINE
LITHUANIA
LATVIA
ESTONIA
ALBANIA
AUSTRIA HUNGARY
BULGARIA
ROMANIA
GREECE
YUGOSLAVIA
POLANDBELARUS
RUSSIANFED.
UNITEDKINGDOM
IRELAND
FRANCE
SPAIN
GERMANYBELGIUM
LUX.
NETH.
SWEDEN
SLOVAKIACZECHREPUBLIC
Tax revenue lost for each lorry load smuggled into the European UnionUS$ 1997
Live animals $24,000
Milk powder$36,000
Meat / butter$54,000
Alcohol$480,000
Cigarettes$1,200,000
Lost revenue
Tackling tobacco smugglingCigarettes smuggled into the UK
as percentage of market share1996 – 2004 projected
1996-974%
1997-986%
1998-9912%
1999-200018%
2000-0121%
2001-0222%
2002-0321% 2003-04
20%
32%2001-02
34%2002-03
36%2003-04
Projected share if no action taken
Projected share if new measures are taken and duty increased by 5%
25%2000-01
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16/ Smuggling CYAN MAGENTA YELLOW BLACK