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  • Retailers welcome new major tobacco seizure valued at €10 million 

    Retailers welcome new major tobacco seizure valued at €10 million 

    Retailers Against Smuggling (RAS) welcomes the seizure by Gardaí and Revenue Customs officers of counterfeit cigarettes in West Dublin on July 4. The seizure has an estimated retail value of over €10 million, showing a potential loss to the Exchequer of nearly €7.5 million.  

    The Association asserts the need to increase enforcement measures against illegal smuggling, to adequately protect the Exchequer and retail revenues and curb youth access to tobacco products. Counterfeit cigarettes are unregulated and have been found to contain substances such as pesticides, arsenic, industrial dyes, rat droppings, tobacco beetles, and sawdust as well as higher levels of tar, nicotine and carbon monoxide. 

    Last year alone, over 51 million cigarettes and 11 tonnes of tobacco were seized, with a combined retail value of approximately €48 million. In 2022, 30% of all cigarette packs held by smokers in the country were found to be classified as illegal or Non-Irish Duty Paid, representing a loss to the Exchequer of €384 million in 2022. This is a rise of 43% compared to 2021. Year after year, the significant seizures of both illegal and NIDP cigarettes demonstrate that more must be done to protect retailers and consumers. 

    Commenting RAS national spokesperson Benny Gilsenan said: “The cost-of-living crisis and lack of enforcement have fuelled the emergence of organised crime gangs in local communities, targeting vulnerable people as demand for cheaper illegal products grows – products that do not meet the required safety standards. For this reason, the Government must strengthen Revenue’s hand in identifying and targeting any attempts at the illegal supply or sale of illicit tobacco.” 

    These recent events illustrate that illicit trade is continuing to grow in Ireland. RAS commends the ongoing work by Revenue and Gardai in the fight against tobacco smuggling and illicit trade and encourages anyone with information on the sale or supply of illegal cigarettes and tobacco to contact its confidential hotline. Free phone number 1800 295 295.  

  • PUBLIC HEALTH BILL REACTION: Proposed licensing scheme fails to protect consumers from illegal tobacco sales

    PUBLIC HEALTH BILL REACTION: Proposed licensing scheme fails to protect consumers from illegal tobacco sales

    Meaningful enforcement measures are required to curb the enormity of illegal tobacco sales 

    Retailers Against Smuggling (RAS) today (June 1) calls on the Government to increase enforcement measures against illegal smuggling and ringfence funding for initiatives that will meaningfully address illicit trade, at a time where 30% of tobacco products consumed in Ireland are either illegal or Non-Irish Duty Paid.

    RAS notes the publication of the Public Health (Tobacco and Nicotine Inhaling Products) Bill following cabinet approval, and is highly concerned by a provision within the Bill to replace the current registration system for retailers with a licensing scheme, which will add a further unnecessary administrative burden and cost on retailers.

    The Bill which came before Cabinet for sign off today (June 1) by the coalition parties contains a new licensing scheme to replace the current registration system for those who sell cigarettes. 

    The Association asserts that efforts would be better focused on increasing enforcement measures against illegal smuggling, to adequately protect the Exchequer and retail revenues and curb youth access to tobacco products. 

    With the introduction of the new licensing system apply, RAS proposes that a percentage of funds collected from the licence fee is ringfenced for initiatives that will meaningfully deal with the growth of smuggling activities in the country. Recently, the UK announced a new £3 million illicit vapes enforcement squad and Revenue is in need of similar support to stop illegal tobacco and nicotine-inhaling products entering the country. 

    Last year alone, over 51 million cigarettes and 11 tonnes of tobacco were seized, with a combined retail value of approximately €48 million. This amount of seizures indicates the huge level of demand for illicit tobacco, and the figures are representative of those products that did not make it onto the market. In 2022, 30% of all cigarette packs held by smokers in the country were found to be classified as illegal or Non-Irish Duty Paid, representing a loss to the Exchequer of €384 million in 2022. This is a rise of 43% compared to 2021. Year after year, the significant seizures of both illegal and NIDP cigarettes demonstrate that more must be done to protect retailers and consumers.

    Spokesperson for Retailers Against Smuggling Benny Gilsenan said “The cost-of-living crisis and lack of enforcement have fuelled the emergence of organised crime gangs in local communities, targeting vulnerable people as demand for cheaper illegal products grows – products that do not meet the required safety standards. For this reason, the Government must strengthen Revenue’s hand in identifying and targeting any attempts at the illegal supply or sale of illicit tobacco.”

    If there must be a new license fee introduced, the fees collected from it must be used to provide more scanners, personnel and detector dogs for our ports and airports. This would send a strong message that we are serious about curbing smuggling while having the added benefit of ensuing that legitimate businesses are protected against the black market.”

    About the licensing system 

    Under the Public Health Bill, the new licensing system will require a retailer who wishes to sell tobacco products or nicotine inhaling products to apply for an annual licence with a yet unspecified fee, instead of a once-off fee of €50 in the current tobacco registration system.

  • Nearly one third of Irish smokers don’t pay Irish duty

    Nearly one third of Irish smokers don’t pay Irish duty

    Rates of illegal cigarettes in 2022 jumped by 43% compared to the previous year, costing the Exchequer a record €384 million in 2022

    Retailers Against Smuggling (RAS) has expressed grave concerns over the shocking increase in tobacco smuggling in Ireland, as highlighted in statistics published today (26 April) by Revenue / IPSOS.

    In 2022, 30% of all cigarette packs held by smokers in the country were found to be classified as illegal or Non-Irish Duty Paid (NIDP), representing a significant increase from 21% in 2021. The estimated loss to the Exchequer on 31.7 million illegal cigarette packs is approximately €384 million (in excise and VAT), and an additional loss of €120 million compared to 2021.

    17% of all cigarette and roll your own packs in Ireland have been found to be illegal. This is a marked increase from 13% in 2021. A further 13% of cigarette packs and 10% of roll your own packs have been found to be legal but Non-Irish Duty Paid; up from 8% and 5% respectively, from 2021.

    Ipsos released today the results of its annual Illegal Tobacco Products Research Surveys 2022. Market research company Ipsos conduct independent surveys of smokers each year for Revenue and the HSE’s National Tobacco Control Office.

    With Ireland ranked as the most expensive country in Europe to purchase duty paid tobacco products, consumers are taking advantage of the option to purchase cheaper products outside the State while travelling and bringing it back. Importantly, the re-introduction of Duty Free on air and sea routes between Ireland and the UK after Brexit has resulted in a rapid decline of legitimates cigarette sales in the Irish market.

    Commenting, national spokesperson for RAS and Dublin based retailer, Benny Gilsenan said: “It’s no surprise that the illegal cigarette trade has grown following the introduction of the new Duty-Free area with the UK. Travel limits are poorly enforced at borders and this is clearly reflected in the significant jump in 2022. Add to that the fact that Ireland is a destination market for criminals to sell tobacco and you can begin to understand the shockingly high level that Revenue is reporting for 2022. It’s the legitimate retailers and the Exchequer that are losing out.”

    Notes to editors:

    • National spokesperson for RAS, Benny Gilsenan is available for media interview upon request.
    • The Revenue 2022 Tobacco Products Research Survey can be accessed here.
    • The Revenue 2022 Annual Report can be accessed here.

    About Retailers Against Smuggling

    Retailers Against Smuggling (RAS) represents over 3,000 small and medium-sized retailers across the country. RAS aims to generate widespread awareness amongst the public, media and decision-makers of the impact that smuggled alcohol, tobacco products and solid fuel has on both the livelihoods of local legitimate retailers and consumers in Ireland.

    For more information about RAS, visit www.retailersagainstsmuggling.ie.

  • Retailers concerned over increasing number of contraband seizures 

    Retailers concerned over increasing number of contraband seizures 

    Retailers Against Smuggling (RAS) today welcome the announcement of new tobacco seizures in County Cork and Louth, however, note concern over the increasing number of contraband seizures in recent weeks. Rigorous monitoring and checks by Revenue officers are essential to combat criminal enterprises that are constantly adapting and seeking new ways of ensuring illicit tobacco products are widely available in Ireland. 

    A first capture of over 79,000 cigarettes and 57 litres of alcohol worth €63,000 in retail value took place on 16 March 2023, and equates a €50,000 estimated loss to the Exchequer. 

    Separately, on 18 March, Revenue officers seized 60,000 cigarettes, which have an estimated retail value of €47,000 representing a potential loss to the Exchequer of approximately €37,000.   

    These seizures demonstrate the significant volume and value of illicit tobacco products that are likely to enter onto the Irish market. RAS commends the work of Revenue and the ongoing efforts of customs officials to tackling the growing number of organised criminal groups and the devasting impact they have on the community.  

    Commenting, national spokesperson for RAS and Dublin based retailer, Benny Gilsenan said: “Significant seizures of tobacco products by Revenue officials in recent weeks indicate that the black- market economy is alive and well. Legitimate retailers across the country are facing unfair competition from criminal organisations exploiting the increasing demand for cheaper products in the context of the cost-of-living and energy crisis”. 

    RAS encourages anyone with information on the sale or supply of illegal cigarettes and tobacco to contact its confidential hotline. Free phone number 1800 295 295. 

  • Seizures of over 6,000kgs of tobacco at Dublin Port welcomed by Irish retailers

    Seizures of over 6,000kgs of tobacco at Dublin Port welcomed by Irish retailers

    Retailers Against Smuggling (RAS) welcomes the announcement (23.02.23) by Revenue of the major seizure at Dublin Port of approximately 6,000kgs of tobacco and 2,400 cigarettes on the 15th February and 12.3kgs of tobacco on the 20th February, worth a combined estimated retail value of over €4.5 million, showing a potential loss to the Exchequer of over €3.5 million. This is the third seizure so far this month and is yet another first-hand indicator of an exceptionally active black market and the scale of tobacco smuggling in Ireland.

    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.

    RAS encourages anyone with information on the sale or supply of illegal cigarettes and tobacco to contact Revenue’s confidential hotline. Free phone number 1800 295 295.

  • Ending reductions in excise duty will increase black market activity 

    Ending reductions in excise duty will increase black market activity 

    Inflationary pressures will drive people to seek cheaper, illegal alternatives 

    Retailers Against Smuggling (RAS) has today expressed grave concern that the phasing out of the reduced rate of excise duty on fuels will only serve to increase black market activity. The measures were announced today (Tuesday 21 February) by Government as part of its new cost-of-living package.  

    Measures agreed at Cabinet will see petrol, diesel and marked gas oil prices rising gradually between June and October. According to AA Ireland, petrol was €1.65 per litre in February or 2.5 per cent higher than January 2023 on average. The organisation contends that the reintroduction of excise duty on petrol will result in a €10 increase per tank of fuel. 

    RAS warned that a phasing-out of excise duty reductions is likely to lead to increased smuggling and laundered fuel. The representative body asserts that high inflation has provided new opportunities to criminal gangs to profit from black market operations. This contention is borne out by the fact in 2022 alone, 47,993 litres of marked fuel oil was seized by Revenue officers.  

    RAS spokesman, Benny Gilsenan, said “With inflationary pressures affecting many households, some will be incentivised to look to alternative means of acquiring fuel, which regrettably does not comply with the law. Where this has occurred in the past, RAS has observed a significant spike in cross-border smuggling. This damages legitimate businesses, local jobs and ultimately the Irish Exchequer”.  

  • 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 warn cost-of-living crisis is not the right time for further excise increases

    Retailers warn cost-of-living crisis is not the right time for further excise increases

    Widening the gap between price of duty paid tobacco vs what’s available on the black market coupled with cost-of-living is creating unfair competition and financial loss for legitimate retailers

    Any additional excise increases on tobacco products in Budget 2023 will drive hard-pressed consumers to the black market as they grapple with the soaring cost-of-living. That’s according to Retailers Against Smuggling (RAS), who have outlined how Ireland remains a key target for crime gangs taking advantage of a rapidly growing illicit tobacco market.

    Commenting on the organisation’s Budget submission to Minister Paschal Donohoe TD, RAS national spokesperson, Benny Gilsenan explained how further excise increases would directly impact both the retail sector and Exchequer.

    He said: “RAS members are witnessing first-hand how the skyrocketing cost-of-living is forcing Irish consumers to make radical decisions on how and where they spend hard-earned income. For many, the black market has for the first time become the only realistic option for purchasing high excise items such as alcohol, solid fuel, and tobacco products.

    “Year-on-year excise increases on tobacco products in particular have resulted in them becoming an exceptionally lucrative commodity for organised crime gangs. A record year for cigarette and tobacco seizures by Revenue in 2021 shows the extent to which sophisticated criminals are taking advantage of household cost-of-living pressures and rapidly growing demand for the black market in Ireland. A trend which RAS members have seen continue to escalate throughout 2022 as the crisis deepens.”

    Mr Gilsenan added: “In the context of spiralling costs and a challenging operational environment ahead, Budget 2023 must avoid any measures which will negatively impact key revenue streams for retailers including an excise hike on tobacco products.”

    Enforcement of tobacco allowances for travellers coming into Ireland

    RAS has also called on Government to ensure ports and airports are adequately resourced to fully enforce the permitted personal allowances that can be brought into Ireland on non-Irish duty paid products. In 2021, 21% of all cigarette packs and 18% of all roll-your-own tobacco packs held by smokers in Ireland were found to be classified as illegal or non-Irish duty paid according to Revenue’s Tobacco Products Research Survey.

    Mr Gilsenan continued: “A full return to international travel this year and the reintroduction of duty-free shopping between the UK and the EU following the end of the Brexit transition period are also having a significant impact on Irish retail tobacco sales. With Ireland ranked as the most expensive country in Europe to purchase duty paid tobacco, consumers are understandably taking advantage of the option to purchase cheaper product outside the State while travelling and bringing it back.

    “To protect key revenue streams for both retailers and the Exchequer, it is critical that ports and airports are adequately resourced to ensure the permittable allowances set out by Customs for bringing non-Irish duty paid products into the country are fully enforced. Retailers are concerned that these allowances are being exceeded with individuals bringing in much larger quantities than what is permitted for personal consumption or to pass on to friends and family.”

    Download the RAS Pre-Budget Submission 2023 here.