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  • Retailers Against Smuggling welcomes cigarette seizure at Rosslare Europort

    Retailers Against Smuggling welcomes cigarette seizure at Rosslare Europort

    Retailers Against Smuggling (RAS) has welcomed Tuesday’s seizure by Revenue of 3,300,000 million cigarettes at Rosslare Europort with an estimated retail value of €2,400,000 representing a potential loss to the exchequer of €1,900,000. This brings the total quantity of seized illicit cigarettes reported by Revenue to over 40,000,000 so far this year pointing to a rapidly growing black market in Ireland.

    Considering this latest major seizure, retailers are reiterating their call to Minister for Finance Paschal Donohoe TD not to include a further excise increase on tobacco products in next week’s Budget 2022 announcement. Additional excise increases will only serve to further incentivise consumers to purchase from the black market fuelling further growth in smuggling activity, which continues to impact registered and legitimate tobacco retailers whose legal cigarette trade can account for 20 – 30 per cent of their business.

    RAS commends the ongoing work by Revenue officials in the fight against smuggling, particularly at our major points of entry through ports and airports.

  • 13.5 tonnes of raw tobacco seized points to large-scale illegal cigarette manufacturing

    13.5 tonnes of raw tobacco seized points to large-scale illegal cigarette manufacturing

    Retailers Against Smuggling (RAS) has warned that 13.5 tonnes of loose raw tobacco seized by Revenue so far this year indicates the likelihood of large-scale illegal cigarette factories operating on the island of Ireland. To date Revenue has announced four major seizures of loose raw tobacco with a combined estimated retail value of €8.1 million representing a potential loss to the Exchequer of €6.7m.

    Commenting, RAS national spokesperson, Benny Gilsenan said: “The significant volume of the consignments being seized, and the elaborate means being used to conceal this raw tobacco suggests that it’s unlikely the product is intended for direct resale to the consumer on the black market. The recent spike in these types of seizures has risen suspicion among legitimate retailers that the intended destination is likely to be illegal cigarette making factories operated by criminal gangs in either the Republic of Ireland or Northern Ireland.

    “In 2018, Gardaí and Revenue officials uncovered the first illegal commercial-scale cigarette production plant found in the State in Jenkinstown Co. Louth, which was capable of producing up to 250,000 cigarettes per hour. During that raid up to 66 tonnes of raw tobacco were seized which gives us sense of the volume of tobacco product required to run such an operation. The fear among retailers is that the volumes of raw tobacco now being seized at Irish ports are at a level which indicates that similar underground facilities are operational on the island of Ireland. For example, we know that roughly 13-15 million cigarettes could be produced from the 13.5 tonnes of raw tobacco seized alone, and we suspect further large volumes are getting into the country undetected.”

    Mr Gilsenan added: “Since the Jenkinstown raid several other illegal factories have been uncovered, primarily around the border regions, which suggests a link to illegal cross-border trade and criminal activity. The most recent seizure of an illegal factory on the island was in Armagh in July this year, which could produce 390 million cigarettes a year. While we fully commend and support the work of Revenue and An Garda Siochána as well as their counterparts in Northern Ireland in detecting smuggled tobacco and cigarettes, we believe more can be done by policymakers to tackle the growing illegal trade in tobacco products in Ireland.”

    In its recent Pre-Budget 2022 submission to Minister for Finance, Paschal Donohoe TD, RAS highlighted how continuous excise increases on tobacco are fuelling demand for a growing black market. This is resulting in increased levels of smuggling activity, impacting registered and legitimate retailers who face unfair ‘competition’.

    “The operation of illegal cigarette factories is just one challenge facing the retail sector. We are also very concerned by the additional spate of illicit cigarette and roll your own (RYO) tobacco seizures by Revenue so far this year. To date over 35 million cigarettes and over 20 tonnes of RYO tobacco have been seized highlighting just how active the black market currently is. The combined estimated retail value of all seizures this year amounts to over €45 million, close to €8 million more than the total for 2020.

    “We are calling on Government to consider the impact this increased rate of smuggling is having on retailers. The continued growth of the black market can only be halted by stopping the continuous excise increases on cigarette and tobacco products, the retail price of which is 121 per cent above the EU average according to a new Eurostat survey issued today”, Mr Gilsenan concluded.

  • Excise increases on tobacco will push consumers to growing black market, retailers warn

    Excise increases on tobacco will push consumers to growing black market, retailers warn

    Attachment orders required to make deterrents to smuggle tobacco more robust

    Continuous excise increases on tobacco are driving Irish smokers towards a growing black market, fuelling significant growth in smuggling activity. That is according to Retailers Against Smuggling (RAS), who have outlined why Budget 2022 should not increase excise on tobacco products considering the unfair ‘competition’ legitimate retailers face from criminal gangs exploiting the demand for illegal tobacco products.

    Commenting on the organisation’s Budget submission to Minister for Finance, Paschal Donohoe TD, national spokesperson for RAS, Benny Gilsenan said: “An excise increase on tobacco products in Budget 2022 will only serve to further damage an already weakened retail sector and will provide increased opportunity for large-scale smuggling and ant smuggling of tobacco products.

    “The policy informing Budget 2022 must account for the need to create a sustainable, flourishing, and legitimate retail sector as we emerge from the pandemic. As retailers, we continue to compete with a very active black market in tobacco products which accounts for 15% of all cigarette packs in Ireland not to mention the 9% of cigarette packs smoked which are bought in from other jurisdictions.”

    Retailers concern around return of ant smuggling

    Mr Gilsenan added: “There is genuine concern amongst retailers that increased demand for the black market spurred by excise increases will lead to an accelerated return of ant smuggling as international travel resumes. Ant smuggling is typically carried out by smugglers travelling on low-cost airlines to purchase cigarettes in countries where it can cost as little as €2 for a pack of 20 cigarettes.

    “Ant smugglers are bringing tobacco products back into Ireland for sale on the streets for less than half of the Irish retail price, making it impossible for legitimate retailers like myself to compete. We have already witnessed eight significant tobacco seizures by Revenue at our airports so far this year and any increase in excise duty in Budget 2022 will only push more of the public to take advantage of this illegal option that bypasses the local shopkeeper and damages revenues to the State.”

    Attachment orders required to make smuggling deterrents more robust

    Only 55 cases of illicit tobacco trade resulted in prosecution throughout 2020 which is in direct contrast to the high volume of illicit cigarettes and tobacco seized by Revenue over the same period valued at over €37m. The scale of the problem was further emphasised last week with three major tobacco seizures by Revenue at Dublin Port valued in excess of €11.1m.

    Mr Gilsenan concluded: “The lack of prosecutions versus the volume of illicit cigarettes, indicates that the deterrents for the sophisticated criminal gangs and small-time criminals behind the black market are ineffective, with potential profits outweighing any penalties that might be imposed. Budget 2022, in the context of excisable goods, should 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. Recent large-scale cigarette and tobacco seizures in the summer of 2021 point to criminals getting ready to compete aggressively with legal retailers in Ireland. Let’s not give them that opportunity.”

    Download the Retailers Against Smuggling Pre-Budget 2022 Submission here

  • No let-up in tobacco smuggling through Ireland’s ports despite additional Brexit checks

    No let-up in tobacco smuggling through Ireland’s ports despite additional Brexit checks

    Significant tobacco seizures at Ireland’s ports in 2021 provide a clear indication that illicit trade is stronger than ever despite the deterrent of additional Brexit related Revenue checks. That is the reaction from Retailers Against Smuggling (RAS) after Revenue seized four tonnes of tobacco worth over €2.4 million at Dublin Port this week.

    This is the fourth major tobacco and cigarette seizure by Revenue at Ireland’s ports this year.

    In February, two separate seizures in one day at Rosslare Europort yielded 5.7 million cigarettes while in January, two tonnes of tobacco were seized at Dublin Port. The potential loss to the exchequer of these four major seizures alone equates to €6 million, demonstrating that Irish ports remain a hotbed for smuggling.

    Commenting, national spokesperson for RAS, Benny Gilsenan said: “The issue of tobacco smuggling remains a huge threat for registered and legitimate tobacco retailers like myself across Ireland, whose legal cigarette trade can account for 20 – 30 per cent of their business. These major seizures when examined alongside the additional detections made at our airports and through warranted searches, demonstrate that the black market continues to be exceptionally active in 2021. The scale and means used to smuggle the tobacco seized at Dublin Port this week might also suggest that it was intended for further illicit cigarette manufacturing.

    “While we commend and fully support the hard work undertaken by Revenue and An Garda Síochána in the fight against illicit trade, our fear is that these seizures are only the tip of the iceberg. If this is the extent of the goods being seized, it is frightening to think about the volume of tobacco making it into the country unchecked costing the exchequer millions of euro in lost revenue and putting the livelihoods of retailers at stake.”

    In its headline results for 2020, Revenue reported a total of 4,390 seizures of cigarettes and other tobacco with a value of €32.7m, this compares to a value of €10.52m for 2019 representing a threefold increase.

    Mr Gilsenan added: “It is very plausible that Covid-19 international travel restrictions over the past twelve months has led to a growth in demand for the black market, which these criminals are trying to exploit by any means. For example, my own store alone experienced an initial 40 per cent rise in tobacco sales when travel restrictions were introduced but this has dropped right back to normal levels. So it begs the question, where are these sales going given that travel restrictions remain in place?

    “If we are to seriously tackle the issue of illicit trade there needs to be much stricter sanctions and more prosecutions for those who are caught smuggling. It is clear from the level of seizures recorded in 2020 and so far this year that the current deterrents to smuggling are not strong enough.”

  • Budget 2021 excise hikes will fuel further smuggling and penalises legitimate retailers

    Budget 2021 excise hikes will fuel further smuggling and penalises legitimate retailers

    Retailers Against Smuggling has expressed grave concern that yet another excise increase will lead to further increased rates of tobacco smuggling directly impacting legitimate registered retailers. The group was reacting to Budget 2021 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 €14.00.

    Commenting National Spokesperson for Retailers Against Smuggling, Benny Gilsenan said: “It is very disappointing to see honest retailers take yet another blow with today’s excise increase which will inevitably make it even harder to compete with a growing black market. We have some of the highest rates of duty on tobacco products in the EU and it is no wonder that Ireland continues to be a target for tobacco smugglers, even while there is Covid-19 restrictions on travel in place.”

    In Revenue’s 2019 Annual Report, its Illegal Tobacco Products Research Surveys revealed that 15 per cent of cigarette packs held by smokers surveyed were classified as illegal. Also, in the Department of Finance’s own Tax Strategy Group paper it was noted that Revenue Commissioners have previously indicated that further increases in excise duties may not lead to increased revenue yields.

    Mr Gilsenan added: “We fully expect that the percentage of smuggled tobacco on the Irish market will continue to rise because of the increase, voiding 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.

    “With Covid-19 restrictions set to be a reality of life for months to come and the looming uncertainty of Brexit, 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. Revenue and An Garda Siochana must be given the correct resources to ensure that criminals don’t continue to reap the benefits of the high cost of tobacco products.”

  • Ireland remains a target for tobacco smugglers as illegal cigarettes seized increases fivefold

    Revenue seized 31.2 million cigarettes during first six months of 2020 compared to 6.6 million in the same period last year

    Retailers Against Smuggling (RAS) have expressed unease over the high number of illegal cigarettes seized by Revenue during the first half of 2020 compared to the same period last year. An analysis of Revenue’s seizures by RAS revealed that there was an almost fivefold increase in cigarettes seized, from 6,659,500 (H1 2019) to 31,202,600 (H1 2020), indicating that Ireland continues to be a target for tobacco smugglers in spite of restrictions on travel.   

    Commenting, national spokesperson for RAS and Dublin based retailer, Benny Gilsenan said: “We commend and fully support the hard work undertaken by Revenue and An Garda Síochána in the fight against illicit trade. However, the smuggling of tobacco remains a significant concern to registered and legitimate tobacco retailers across Ireland, whose legal cigarette trade can account for 20 – 30 per cent of their business. The fact that over 31 million illegal cigarettes have been confiscated by Revenue during the first half of this year alone demonstrates that criminals continue to target Ireland and are adapting their methods in response to restrictions on personal travel by focusing their efforts on large consignments of smuggled products. It is just another indicator as to why it is becoming increasingly hard for legitimate retailers to compete with the black market.

    “It demonstrates that while current travel restrictions due to COVID-19 have resulted in low levels of Non-Irish Duty Paid (NIDP) entering the market, it is clear that criminal enterprises are continuing to seek out ways of ensuring smuggled products enter the country. We believe that there is still more that can be done and that is why in our recent pe-budget submission to the Minister for Finance, RAS called for the detection and seizure of illegal tobacco products to remain a priority for Irish authorities, with increased awareness of the elaborate means criminal gangs are utilising to transport these huge volumes.”

    In Revenue’s 2019 Annual Report, its Illegal Tobacco Products Research Surveys revealed that 15 per cent of cigarette packs held by smokers surveyed were classified as illegal. This represents a potential loss to the Exchequer of €242 million in 2019 on 24 million illegal cigarette packs.[1] The same Revenue survey found that 12 per cent of the Roll Your Own tobacco packs held by smokers surveyed were illegal in 2019.

    Mr Gilsenan added: “The increase in the number of cigarettes seized in 2020 compared to the same period in 2019, and indeed compared to 2019 in total, indicates that an even greater number of cigarettes could potentially be making its way to the black market. This increase in the scale of the seizures highlights the importance of the work by Revenue and An Garda Síochána and the need for a continued focus on tackling illicit trade by the authorities. This criminality is directly affecting livelihoods and local retail businesses across the country who are already facing enormous pressures as a result of COVID-19.”

    [1] https://www.revenue.ie/en/corporate/documents/research/tobacco-surveys-2019.pdf

  • Seizures worth over €7.9m indicate cigarette smugglers are thriving despite coronavirus

    Seizures worth over €7.9m indicate cigarette smugglers are thriving despite coronavirus

    Rigorous monitoring and increased checks by Revenue are essential to combat a potential increase in illicit trade of cigarettes over the coming months. That is the call from Retailers Against Smuggling (RAS) who have raised concern over the potential growth of the black market as a result of Covid-19 and the upcoming ban on menthol cigarettes in Ireland, which comes into effect on Wednesday, 20th May 2020.

    Commenting, national spokesperson for RAS and Dublin based retailer, Benny Gilsenen said: “Significant seizures of cigarettes by Revenue in recent weeks, including two hauls at Dublin Port worth over €7.9m, indicates that the black economy is alive and well. As retailers across the country are struggling to adapt to the new operational realities and costs of Covid-19, these seizures tell us that it is very much business as usual for the criminals.

    “While we commend the efforts of Revenue in ensuring that these cigarettes do not reach the black market, including another seizure in Donegal over the weekend worth €40,000, there is no room for complacency in clamping down on cross-border smuggling, particularly in light of the new regulations coming into effect this month. Retailers like myself are very concerned that the ban on menthol cigarettes, which account for approximately 18 per cent of tobacco sales in Ireland, will result in a widening of a black market that is already having an adverse effect on local retailers. We have already witnessed a growth in the trade of illicit menthol cigarettes in the UK over recent months and there is a real risk we will see a similar trend emerge here.”

    The ban is being introduced to follow the completion of a four-year phasing-in period under a 2016 EU directive on tobacco products. According to its 2019 Annual Report, Revenue seized 3,215 cigarettes and 1,445 other tobacco products, at a total value of €10.52 million. This represented a 75 per cent drop since the same period in 2018.

    Mr Gilsenen added: “Looking at the significant drop in seizures between 2018 and 2019, it is glaringly obvious that criminal gangs are using whatever means necessary to evade detection and keep their illegal finances thriving. The spate of seizures in the last week should serve as a wake-up call for everybody.”

  • More resources needed to tackle illegal smuggling in light of significant drop in tobacco products seizures

    More resources needed to tackle illegal smuggling in light of significant drop in tobacco products seizures

    Retailers Against Smuggling (RAS) is calling on the next Government to consider further resources in the detection and prosecution of illegal smuggling of excisable goods. New figures published by Revenue indicate that a new approach must be explored if we are going to stem the tide of illegal smuggling and give local legitimate retailers any chance against the flourishing black market.  

    The Revenue’s Annual Report for 2019 illustrated that:

    • Revenue seized 3,215 cigarettes and 1,445 other tobacco products, at a total value of €10.52 million, in 2019.
    • That is a 75% drop in the seizure of tobacco products since the same period in 2018 (the total value was €41.29 million).
    • This is also easily the lowest haul for Revenue since records began in 2013 – the lowest being in 2017 with a total value of €20.5 million.  

    RAS welcomes the Revenue’s acknowledgement that the problem is increasingly hard to detect, with criminal gangs now using inventive and complex smuggling and concealment methods. A more collaborative approach in tackling the issue is needed and RAS will work with Revenue in whatever way possible – for example greater sharing of information – and play its role in trying to combat the problem which is effecting livelihoods and local retail businesses across country.   

    Reacting to the publication of these figures, RAS spokesperson and retailer in Dublin Benny Gilsenan said “We know that the availability of tobacco products on the black market is widespread and yet we now hear that seizures are down significantly. It shows that criminal gangs are using whatever means necessary to evade detection and keep their illegal finances thriving. This needs to serve as a wake-up call for everybody”.    He added: “The incoming Government needs to take a fresh look at what can be done to tackle this vital issue. Illegal smuggling is not only bankrolling criminal gangs and draining resources from the State, it is crippling legitimate local retailers trying to make a living”.

  • Retailers Against Smuggling Highlight Devasting Impact of Illicit Solid Fuel with Gardaí and Local Politicians

    Retailers Against Smuggling Highlight Devasting Impact of Illicit Solid Fuel with Gardaí and Local Politicians

    Retailers Against Smuggling (RAS) along with CPL Fuels Ireland and Hardware Association Ireland (HAI) met with representatives from the local Garda Síochána and members of the Monaghan County Council to highlight their growing concerns with illicit trade of solid fuels.

    Attendees at the County Monaghan Joint Policing Committee heard about the dire impact on sellers, distributors and manufacturers due to the levels of illicit solid fuel trade in the border region, and the industry reiterated its concern over the Government’s inadequate response to tackling the issue.

    RAS Sub-Group member and CPL Fuels Managing Director Niall McGuinness spoke at the meeting saying “We urgently need greater visible action from the powers that be in tackling this issue that is ruining people’s livelihoods, or it will only get worse. Today was a good step forward and shone a light on the real impact illicit solid fuel trade is having, particularly in the border region”.

    HAI’s Jim Copeland said “Our members are under extreme pressure to keep up with the levels of fuel coming over the border. Some of them have stopped selling fuel all together. A carbon tax increase will put over 1,200 jobs at risk – something must be done.”

    Solid fuel can represent up to half of some retailers’ turnover, particularly in the Winter months. The illegal fuel trade is booming in Ireland and the Government must make it a priority to protect Irish retailers especially in the lead up to Brexit.

    The illicit solid fuel trade is costing the Exchequer over €9.7 million in lost revenue, which represents a loss of €36.5 million to retail merchants, putting many local traders out of business. Different tax approaches in the Republic of Ireland and in Northern Ireland make a lorry load of coal €2,217 more expensive in the Republic than in The North. A carbon tax hike in Budget 2020 will make this gap even larger and encourage smuggling of solid fuel over the border. RAS, CPL and HAI also raised the issue of fuel poverty at the meeting. 28% of people in Ireland experience energy poverty. Those who can afford to buy 1 tonne of untaxed coal online from Northern Ireland and have it delivered to their homes in the Republic for personal use do so, while the 28% of citizens experiencing fuel poverty have no opportunity to do the same. This practice is contributing to the cost gap between those Irish Citizens experiencing fuel poverty and those benefitting from the lack of enforcement on fuel coming across the border.

  • Latest Excise Hike leaves Retailers at a Loss

    Retailers are at a loss to understand the Government’s decision to impose another excise increase of 50c in today’s Budget. Retailers Against Smuggling’s (RAS) National Spokesperson Benny Gilsenan commented on the announcement: “In the backdrop of a potential no-deal Brexit, the return of a Duty Free regime between Ireland and the UK and an ever fluctuating Sterling, all of which will lead to further growth in the illicit trade, tax compliant small and medium sized retailers are once again penalised while criminals and Airport Duty Frees reap the benefits as the cost of tobacco products increase yet again.”