5554

“…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