Last June delegates of many governments met in Swiss City of Geneva to consider the first universal convention on illegal tobacco trade.

Next month the same governments will gather again to endorse the first draft of that convention that is supposed to become a powerful tool in the struggle against the black market of tobacco products. If the convention is ratified, it would virtually crack down the illegal trade throughout the world.

Tobacco products are the most frequently smuggled legal items in the world. The trade of fake cigarettes, illicitly produced and sold to smokers is a major worldwide issue that strips governments of many countries of millions each year in lost earnings. Annually almost 660 billion are traded illegally – accounting for a huge amount of lost taxes for the state treasuries, as well as lost chances to reduce smoking rates and prevent young people from taking up cigarettes.

Enforcement agencies suspect contrabandists from Africa in using their criminal network spreading from Somalia to Congo to transport counterfeit tobacco through the continent and evading tax. They keep the mind-blowing revenues from illicit tobacco trade in several banks.

Several African countries already launched campaigns to eliminate the smuggling of tobacco products, but their efforts have not been very effective.

According to the convention due to be signed by the officials, the production or sales of cigarettes or other tobacco products lacking tax stamps manufacturer’s marking on them will be regarded as a violation. Also under the document, storage or transportation of tobacco together with non-tobacco products will be a violation, since that is the widely used method of hiding tobacco in other products.

Merchandisers will as well be prohibited from purchasing tobacco from sellers of producers who are not certified to make or sell tobacco items.

Kenyan cigarette-makers complain fabricated tobacco products are habitual for the country which plays an important role in transporting counterfeit cigarettes. British American Tobacco, one of the largest tobacco companies in the world admits local treasury is missing nearly Sh1 billion each year in lost taxes due to the trade of fabricated tobacco products.

Collins Denier, BAT’s senior investigations manager stated that fake tobacco products notably from Asia are occupying nearly 15 percent of African tobacco market. Smugglers earn Sh100 billion annually and these revenues might be invested in other illegal practices, such as terrorism and weapon purchase across the region.

The officials are also concerned that revenues from illegal tobacco trade could be also used to fund organized crime in the region and in Asia. British American Tobacco recently discovered that several of its major brands were massively fabricated and distributed in the UK and Asian countries. The company as well estimated that illicit tobacco trade deprives legal manufacturers and retailers from billions of dollars in lost revenues.

Similar Posts:

• Geneva Meet Trains Sight on Illicit Trade in Tobacco Products
• Negotiators take aim at tobacco smuggling
• BAT wants stricter penalties to smoke out illegal cigarettes
• ETRC issues rallying cry against proposed tobacco ban
• Tobacco smuggling to get a whole lot tougher

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