simpson smuggling

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  • Factors encouraging smugglingCriminal organisationSophisticated distribution No control over movementNo duty during transitIllegal sales toleratedDifficulty telling legal from illegalActive support of tobacco companies

  • Factors reducing smugglingProminent tax stampsSevere penaltiesAll in chain licensedTracking by serial numberDispatch only to responsible destinationLabel with destinationIncreased anti-smuggling actionAction against companies

  • Legal action against tobacco companies for alleged smugglingOct. 2001: UK Dept of Trade investigates BATJan. 02 Canada: Rothmans offices searched re smuggling to US, 1989-96Late 01-early 02: European Commission sues US companies for smugglingFeb. 02(?): European Union accuses US companies of violating Iraq sanctionsEarly-mid 02: US government sues PM for racketeeringOct. 02: EU Commission sues Rothmans in USA for money launderingJan. 03: German boss of Reemtsma (Imperial) held by police Jan. 03: Iraqi sues RJT over loss of (smuggling) earnings!Mar. 03: 8 JT (RJR) executives charged with C$1.2 Bn tax fraud from smuggling 1991-96

  • Hanoi,Vietnam2003

  • Hanoi, Vietnam 2003

  • Vietnam, 2003

  • Some notes from BATSmuggled sales into Vietnam are currently estimated at approximately 7 bn [billion] p.a. although prior to a crackdown in 1990 (when [it was eliminated for 18 months) it was in the region of 12-17 bn p.a.

    SE [State Express] 555 is the major smuggled brand and there is no doubt it has a tremendous image and sales potential in the country.

    BAT has resisted agreeing to manufacture 555 in Vietnam due both to concerns about the ability to sell the brand as a locally manufactured product and to the possible impact of a licence outside Vietnam.

    Vinataba [the Vietnamese State monopoly] sees a licence of 555 as an attractive opportunity for the JV [joint venture], and believes that BATs opposition to a licence is simply to protect the smuggling trade.3

    From a BAT internal document (12 May 1995):In Vietnam, smoking State Express 555 means that youve made it. Comment by Fred Combe, general manager of BAT, Vietnam, 1998:

  • Vietnam, 2003