RAS Blog

Tag: Dublin Port

  • 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 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.

  • 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