European Union Trying to Crack Down Cigarette Smuggling by All Possible Means
Published on February 22, 2010 7:10 AM
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Cigarettes have recently become one of the most frequently trafficked goods across the globe. Figures show that nearly 10% of all cigarettes available in European Union countries were illegally imported into the Union. EU Parliament have voted to introduce additional measures to protect the EU eastern and southern border from the inflow of smuggled tobacco and put an end to cigarette contraband from Asia and CIS countries.
The Union will consolidate its anti-smuggling efforts on literary closing the borders for cigarette traffickers. The most rigorous regulations have been recently introduced on the Polish border with the Russian Federation and Ukraine, because the rate of cigarette smuggling from the latter two countries has reached a record high. In 2009 alone Poland’s enforcement agencies seized almost 800 million illicit cigarettes, 12% more than in 2008.
Despite the quantities of detained cigarettes seem to be tremendous, the police agents were able to seize a small portion of illicit tobacco products transported across Poland which is notorious for being on the most frequently used routes for tobacco traffickers.
Cigarette smuggling is a quite profitable activity, as a successful delivery of 10.000 cigarette cartons can result in nearly 250.000 Euro in earnings. These profits turned cigarettes to the most trafficked consumer goods in Europe. Tobacco smuggling gives criminal groups even more profits than drugs, but the penalties for tobacco traffic are much softer than for drugs contraband, so it makes sense for criminals.
Moreover, illicit cig market has a much less intolerant attitude from the public, as they have a heart for smokers.
The average price of a pack of 20 cigarettes is as low as $0.5 in Ukraine, but is selling for 4 times more upon moving past Polish border. When it reaches German market, such pack can be sold for $6 and as much as $9 if selling it in Great Britain or Norway.
This price range has prompted tobacco traffickers to bribe many people, from warehouse owners and drivers to police agents and officials, who agree to leave the tobacco traffic without attention.
The amount of cigarettes selling on the black market, which has reached 10% of the entire cigarette market, has stripped the European Union treasury from almost seven billion euros in lost revenues from tobacco excise taxes.
The Union has the only chance to stop this illegal practice. They have to seize the influx of contraband tobacco imported into the Union. The officials have finally managed to estimate the damage tobacco contraband causes to the economy and decided to act instantly and rigorously.
In 2010, Polish Legislature will spend almost 35 million euro to but the most advanced electronic equipment, machinery, trainings for the personnel and other things that will help protecting their border from tobacco smugglers.
The move to shut the border for traffickers has already resulted in the shift of traffic routes in the southerner direction, with more goods started to be transported via Hungary.
