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Tob Control 21:230-234 doi:10.1136/tobaccocontrol-2011-050205
  • Strategic directions and emerging issues in tobacco control

From cigarette smuggling to illicit tobacco trade

  1. Martin Raw2,3
  1. 1Association of the European Cancer Leagues, Foundation Against Cancer, Brussels, Belgium
  2. 2UK Centre for Tobacco Control Studies, University of Nottingham, Nottingham, UK
  3. 3National Institute of Alcohol and Drug Policies, Federal University of Sao Paulo, Sao Paulo, Brazil
  1. Correspondence toLuk Joossens, Foundation Against Cancer, Chaussée de Louvain 479, B-1030 Brussels, Belgium; ljoossens{at}cancer.be
  1. Contributors LJ was the project leader and he conceived the article. MR led the writing process, including the final writing and editing. Pricing Policies and Control of Tobacco in Europe (PPACTE) contributed to this paper.

  • Received 25 March 2011
  • Accepted 29 August 2011

Abstract

Background Tax policy is considered the most effective strategy to reduce tobacco consumption and prevalence. Tax avoidance and tax evasion therefore undermine the effectiveness of tax policies and result in less revenue for governments, cheaper prices for smokers and increased tobacco use. Tobacco smuggling and illicit tobacco trade have probably always existed, since tobacco's introduction as a valuable product from the New World, but the nature of the trade has changed.

Methods This article clarifies definitions, reviews the key issues related to illicit trade, describes the different ways taxes are circumvented and looks at the size of the problem, its changing nature and its causes. The difficulties of data collection and research are discussed. Finally, we look at the policy options to combat illicit trade and the negotiations for a WHO Framework Convention on Tobacco Control (FCTC) protocol on illicit tobacco trade.

Results Twenty years ago the main type of illicit trade was large-scale cigarette smuggling of well known cigarette brands. A change occurred as some major international tobacco companies in Europe and the Americas reviewed their export practices due to tax regulations, investigations and lawsuits by the authorities. Other types of illicit trade emerged such as illegal manufacturing, including counterfeiting and the emergence of new cigarette brands, produced in a rather open manner at well known locations, which are only or mainly intended for the illegal market of another country.

Conclusions The global scope and multifaceted nature of the illicit tobacco trade requires a coordinated international response, so a strong protocol to the FCTC is essential. The illicit tobacco trade is a global problem which needs a global solution.

Footnotes

  • Funding This work was funded by EC FP7 Grant Agreement HEALTH-F2-2009-223323 'Pricing Policies (PPACTE)'.

  • Competing interests None.

  • Provenance and peer review Commissioned; externally peer reviewed.

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