RAS Blog

Category: Cigarette Smuggling

  • Seizure of 10 million cigarettes at Rosslare Europort welcomed by Irish retailers

    Seizure of 10 million cigarettes at Rosslare Europort welcomed by Irish retailers

    Retailers Against Smuggling (RAS) welcomes yesterday’s major seizure of 10 million cigarettes at Rosslare Europort. The seizure had an estimated retail value of €7.9 million, representing a potential loss to the Exchequer of almost €6.2 million.

    This is the largest cigarette seizure by Revenue so far this year, demonstrating that the illicit tobacco trade is continuing to grow in Ireland. This seizure shows that the cost-of-living crisis is driving demand for black market products, which retailers are being forced to compete with while facing a challenging winter of rising energy bills and soaring inflation. 

    RAS commends the ongoing work by Revenue officials in the fight against smuggling, particularly at our major points of entry through ports and airports. RAS encourages anyone with information on the sale or supply of illegal cigarettes and tobacco to contact Revenue’s confidential hotline. Freephone 1800 925 925.

  • Surge in tobacco seizures points to booming illicit trade as retailers face uncertain winter

    Surge in tobacco seizures points to booming illicit trade as retailers face uncertain winter

    Retailers encouraged to report suspicious trade of illicit cigarettes and tobacco to Revenue

    A significant spike in cigarette and tobacco seizures by Revenue in October signals the threat of smuggling activity is stronger than ever for registered and legitimate retailers. That’s according to Retailers Against Smuggling (RAS) who call on business owners and the public to report suspicious trade of illicit cigarettes and tobacco in their locality.

    The combined estimated retail value of cigarette and tobacco seizures announced by Revenue and An Garda Síochána so far this month is over €8.1 million.

    Commenting, RAS national spokesperson Benny Gilsenan said: “In 2021 the notional loss to the Exchequer on the 22.7 million illegal cigarette packs consumed in Ireland was €264 million according to Revenue. However, retailers are bearing the greatest impact of this as consumers are forced to source cheaper product from the black market for which there is a spiralling growth in demand. Not only are retailers losing out on tobacco sales, but more importantly they are hit by the lost sales of additional products consumers might purchase had they called into store.

    “This comes as the retail sector faces a challenging winter ahead to keep stores viable due to soaring energy prices and the general cost of doing business rapidly increasing. At the same time, organised crime gangs are making huge profits from the growth in demand for cheaper tobacco products. We are seeing first-hand how large consignments of illicit cigarettes and tobacco are trickling their way down into communities across Ireland to small time criminals who are often selling to minors.

    Mr Gilsenan added: “We encourage business owners and the public to play a role in tackling this criminality, protecting minors, and supporting local retail trade by reporting suspicious activity to Revenue. Information on the ground like this is incredibly valuable to Revenue for building a full picture of illicit tobacco trade in Ireland. This intel ensures Customs Officers can identify the supply lines between small time sellers and the major crime gangs bringing large consignments into the country, leading to the type of major seizures we’ve seen this month.”

    Anyone with information on the sale or supply of illegal cigarettes and tobacco can contact Revenue’s confidential hotline. Freephone 1800 925 925.

  • Retailers concern over tobacco excise increase ignored in Budget 2023

    Retailers concern over tobacco excise increase ignored in Budget 2023

    Retailers Against Smuggling (RAS) has expressed frustration over an excise increase on tobacco which is set to drive further black-market activity as consumers grapple with the soaring cost-of-living. The group was reacting to Budget 2023 announced by the Minister for Finance, Paschal Donohoe TD which included an increase of 50c on the average price of a packet of 20 cigarettes.

    Commenting, National Spokesperson for Retailers Against Smuggling, Benny Gilsenan said: “It is extremely disappointing that Minister Donohoe has once again ignored the concerns of legitimate registered retailers on the direct impact black market activity is having on their businesses. Today’s Budget 2023 announcement will inevitably push many consumers to the black market for the first time and makes illicit tobacco an even more lucrative commodity for organised crime gangs.

    “We fully expect that the percentage of smuggled tobacco on the Irish market will continue to rise because of the increase, eliminating any potential gains to the Exchequer. As consumers turn towards the black market, ultimately it is the retailer who suffers through the loss of not only the legal purchase of cigarettes but also any potential additional purchases that person might make when they are in the store.”

  • Retailers’ welcome seizure of illicit cigarettes and tobacco valued at €5.5million

    Retailers’ welcome seizure of illicit cigarettes and tobacco valued at €5.5million

    Retailers Against Smuggling (RAS) has today (31.08.22) welcomed the Revenue seizure of illicit tobacco and cigarettes with an estimated retail value of €5.5 million at Dublin Port. The seizure included 4.5 million cigarettes and 3 tonnes of ‘roll your own’ tobacco destined for an address in Co. Meath and onward distribution onto the black market.

    Commenting RAS national spokesperson Benny Gilsenan said: “The ongoing seizure of large consignments of illicit tobacco is a first-hand indicator of just how much demand for the black-market is growing. This is understandably driven by the souring cost of living which is forcing consumers to look at all options in terms of how they spend hard-earned income. With continuous year-on-year excise increases placed on tobacco products, it has reached a point where many smokers are forced to turn towards the black market where they know they can make significant savings.

    “The organised crime gangs behind this smuggling activity have recognised this growth in demand for illicit tobacco products as an open goal to fund other streams of criminal activity. With the placement of yet another excise increase on tobacco products expected in next months budget, the gap between the cost of a legal packet of cigarettes and what’s available on the black market is only set to widen. The knock-on consequence being significant loss of revenue to both the Exchequer and legitimate retailers, while major criminals continue to line their pockets.”

  • Retailers’ welcome latest Revenue seizure of 1.5 million illicit cigarettes in Co. Meath

    Retailers’ welcome latest Revenue seizure of 1.5 million illicit cigarettes in Co. Meath

    Retailers Against Smuggling (RAS) welcome the seizure of 1.5 million illicit cigarettes at a premises in Co. Meath. The seizure had an estimated retail value of €1.1 million, representing a potential loss to the Exchequer of approximately €919,000.

    This latest announcement by Revenue validates retailer concerns of a highly functioning black market which legitimate Irish retailers are forced to compete with. Commenting, national spokesperson for RAS and Dublin based retailer, Benny Gilsenan said, “This seizure of illicit cigarettes indicates that the market is alive and well. As retailers across the country are struggling to adapt to the rising cost of doing business, seizures like this tell us that it is very much business as usual for the organised crime gangs behind smuggled tobacco products.”

    RAS commends the ongoing work by Revenue officials in the fight against smuggling. However, the issue of tobacco smuggling remains a huge threat for registered and legitimate tobacco retailers whose legal cigarette trade can account for 20 – 30 per cent of their business.

  • Retailers’ welcome seizure of 9 million cigarettes at Dublin Port

    Retailers’ welcome seizure of 9 million cigarettes at Dublin Port

    Retailers Against Smuggling (RAS) welcome the announcement by Revenue regarding the seizure of 9 million cigarettes at Dublin Port on Friday, 13th May. The seizure had an estimated retail value of €6.8m representing a potential loss to the Exchequer of more than €5.3m.

    This the tenth major cigarette and tobacco seizure announced by Revenue so far this year, is the largest to date. With over 16.4 million illegal cigarettes seized so far in 2022, this latest announcement by Revenue reaffirms retailer concerns of the continuation of a rapidly growing black market which Irish they are forced to compete with.

    RAS commends the ongoing work by Revenue officials in the fight against smuggling, particularly at our major points of entry through ports and airports. However, the issue of tobacco smuggling remains a huge threat for registered and legitimate tobacco retailers whose legal cigarette trade can account for 20 – 30 per cent of their business.

  • Rise in counterfeit cigarettes indicates likely operation of illegal factories in Ireland

    Rise in counterfeit cigarettes indicates likely operation of illegal factories in Ireland

    Revenue 2021 Annual Report confirms a record year for cigarette and tobacco seizures

    Counterfeit cigarettes now account for 7% of all illegal packs held by Irish smokers, indicating the likely operation of illegal tobacco factories on the island of Ireland. That’s the concern raised by Retailers Against Smuggling (RAS) reacting to the latest Tobacco Products Research Survey published by Revenue as part of its 2021 Annual Report.

    Commenting on the report which confirms a record year for Revenue tobacco and cigarette seizures, RAS national spokesperson Benny Gilsenan said: “It’s no small coincidence that the percentage share of counterfeit cigarettes on the black market has increased in tandem with a huge spike in volume of loose and roll your own tobacco seized by Revenue last year. RAS members had previously warned that the sharp rise of loose tobacco being seized indicates first-hand the likely operation of large-scale illegal cigarette factories in Ireland. Now we are seeing the consequence of this smuggling and illegal manufacturing activity in the form of increased counterfeit product in the possession of Irish smokers.”

    Counterfeit cigarettes are cigarettes manufactured without authorisation of the rightful owners, with intent to deceive consumers and to avoid paying duty. The majority (89%) of illegal cigarettes held by Irish smokers are classified as contraband meaning they are normal, commercial brands of bought duty paid or duty-free outside Ireland and smuggled in. In total, Revenue seized over 38 tonnes of loose and roll your own tobacco product in 2021 representing a 431% increase compared to 2020.

    Mr Gilsenan added: “There is simply no way that the volume of tobacco seized in 2021 was intended for direct resale via small time criminals on the street. The simple reality is that sophisticated and well financed organised crime gangs are behind these operations, exploiting growing demand among consumers for more affordable cigarette products. With the black market becoming more lucrative each year, these criminal gangs are determined to continuously adapt and find new creative means to bring illicit product into the country including the operation of illegal manufacturing facilities.”

    Concluding, Mr Gilsenan said: “We must applaud the ongoing efforts by Revenue officials in the fight against tobacco smuggling particularly at Ireland’s major points of entry including our ports and airports. A record year for seizures last year is a testament of these efforts and key to this success is Revenue’s commitment to extensive collaboration with international counterparts to detect the trade routes criminal gangs are using to import illicit product. However, we’re a long way off from resolving the smuggling challenge which remains a significant treat to registered and legitimate retailers who are struggling to compete with a growing black market.”

  • Retailers Against Smuggling welcome seizure of 4.3m cigarettes at Rosslare Europort

    Retailers Against Smuggling welcome seizure of 4.3m cigarettes at Rosslare Europort

    Retailers Against Smuggling (RAS) welcomes the announcement by Revenue regarding the seizure of 4.3 million cigarettes at Rosslare Europort on Saturday, 29th January. The seizure had an estimated retail value of €3.2m representing a potential loss to the Exchequer of more than €2.5m.

    This is the largest cigarette seizure by Revenue so far this year, following a record-breaking year for large-scale cigarette and tobacco smuggling in 2021. This latest seizure points to the continuation of a rapidly growing black market which Irish retailers are forced to compete with, as sophisticated criminal gangs take advantage of the tidy profits that can now be made from illicit tobacco.

    RAS commends the ongoing work by Revenue officials in the fight against smuggling, particularly at our major points of entry through ports and airports. However, the issue of tobacco smuggling remains a huge threat for registered and legitimate tobacco retailers whose legal cigarette trade can account for 20 – 30 per cent of their business.

  • Retailers feel impact of record year for large-scale tobacco smuggling

    Retailers feel impact of record year for large-scale tobacco smuggling

    Increase in large seizures of illicit tobacco and cigarettes points to lucrative black market for organised crime gangs

    A significant spike in major seizures of cigarette and tobacco products in 2021, suggests that the black market being exploited by crime gangs is more lucrative than ever. That’s according to Retailers Against Smuggling (RAS) reflecting on one of the busiest years for Revenue which announced 57 major tobacco seizures over the past 12 months, 14 of which had an estimated retail value of over €1 million.

    Commenting on the impact felt by registered and legitimate retailers, National Spokesperson for Retailers Against Smuggling, Benny Gilsenan said: “The sheer magnitude of seizures reported by Revenue this year vindicates our concerns that tobacco smuggling is on a sharp rise. This is resulting in a rapidly growing black market which retailers like myself simply cannot compete against. It’s clear that criminal gangs are taking advantage of the tidy profits that can now be made from illicit tobacco while undercutting legitimate retail prices. The large consignments we’re seeing seized, primarily at our major ports, is just the tip of the iceberg.  We know that the majority of illicit product being smuggled into the country is finding its way onto the black market hitting the bottom line of registered retailers.”

    A RAS analysis of Revenue announcements made via press release in 2021 vs 2020 shows:

    • A total of 57 major seizure announcements were made in 2021, up 24.
    • 14 of these seizures were valued over €1 million, up four.
    • Over 50.2 million cigarettes were seized, up 2.1 million from last year.
    • Over 35.5 tonnes of loose and roll your own tobacco was seized, up 28.4 tonnes.
    • 28 major seizures were made at Dublin Port and Rosslare Europort, up 15.
    • The total estimated retail value of seizures to date is over €57.1 million, up €24.4 million.

    Organised crime gangs behind tobacco black market activity

    Mr Gilsenan continued: “The discovery of 906kg of tobacco linked with last month’s €9.8m drugs seizure at Dublin Port clearly indicates the type of organised crime gangs behind large-scale tobacco smuggling. We continue to argue that the current Government policy of placing annual excise increases on tobacco products is making illicit tobacco trade a more lucrative and appealing market for these gangs. This is further fuelled by growing consumer demand as smokers are forced to turn to the black market due to duty paid tobacco products sold by registered retailers becoming too expensive.

    “There is growing apprehension among the retail community that the financial incentives for gangs bringing product onto the black market now far outweigh any risks. For example, other than the possibility of the product being detected and seized, there appears to be no obvious deterrents such as meaningful court prosecutions which might make criminals think twice about smuggling large-scale illicit tobacco consignments into the country. We can also be sure that criminal gangs account for in advance the projected percentage loss associated with the detection and seizure of product.”

    Detection and prevention key to stemming tobacco smuggling

    Mr Gilsenan concluded: “At the same time we must fully commend the work undertaken by Revenue and Customs officers this year to yield such an increase in large-scale seizures, particularly at our major ports. It’s also encouraging to see continued investment in technology like the state-of-the-art mobile x-ray container scanner deployed at Rosslare Europort, to help officers successfully detect illicit product. These detection efforts are critical in stemming supply into the black market, protecting both the Exchequer and registered retailers.

    “However, until key individuals behind these crime gangs are targeted and handed appropriate prosecutions, they will continue to find more sophisticated means to smuggle large shipments of illicit tobacco. Financially, tobacco smuggling has now become a core pillar of the business models for these gangs. As a preventative approach at Government level, greater focus needs to be placed on delivering robust prosecutions and in turn strengthening the deterrent to engage in tobacco smuggling.

  • Tobacco excise increase fails to stem spiralling black-market activity – Budget 2022

    Tobacco excise increase fails to stem spiralling black-market activity – Budget 2022

    Retailers Against Smuggling (RAS) has expressed its apprehension over how yet another excise increase on tobacco is set to further fuel a rapidly growing black market. The group was reacting to Budget 2022 announced by the Minister for Finance, Paschal Donohoe TD which included an increase of 50c on tobacco, bringing the cost of an average packet of 20 cigarettes to €15.00.

    Commenting on the direct impact to legitimate registered retailers, National Spokesperson for Retailers Against Smuggling, Benny Gilsenan said: “It’s very disappointing to see an excise increase in Budget 2022 which will inevitably make it even harder for retailers like myself to compete against the rapidly growing black market in Ireland. Ireland continues to be a key target for tobacco smugglers as a result of having one of the highest rates of duty on tobacco products in the EU, resulting in unfair competition for Irish retailers.

    “We fully expect that this latest excise increase will drive more Irish smokers to the black market with criminal gangs exploiting the demand for illicit tobacco products. This will inevitably lead to a growth in large-scale smuggling activity and ant smuggling. Ultimately this means retailers will continue to suffer not only through the loss of the legal purchase of cigarettes but also any additional purchases that person might make when they are in the store. It is regrettable that the Minister Donohoe has ignored the warning made by both retailers and the Department of Finance Tax Strategy Group that an excise increase could encourage more smokers to source products outside of the State.”

    To date this year, Revenue has announced 49 major tobacco seizures, including the seizure of over 40 million cigarettes, with an estimated retail value of under €49m representing a potential loss to the exchequer of over €39m.

    Mr Gilsenan concluded: “The detection and seizure of illegal tobacco products must remain a priority for Irish authorities, with increased awareness of the elaborate means criminal gangs are utilising to transport these huge volumes. In the context of excise goods, there needs to be greater focus on rendering existing enforcement regulations more robust by introducing attachment orders to violations, thereby providing the means to the State to recoup losses to the Exchequer driven by smuggling.”