RAS Blog

Tag: smuggled cigarettes

  • Only three scanners available to monitor all the country’s ports 

    Only three scanners available to monitor all the country’s ports 

    Revenue under resourced to check the 1.2m freight vehicles that enter Ireland every year 

    The Minister for Finance Michael McGrath has stated that there are only three mobile scanners available to Revenue for scanning containers coming into the country’s ports. While the mobile units can be deployed to any port or warehouse throughout the country, these resources lack the capacity to adequately monitor the 1.2 million freight vehicles and trailers passing through just the three main Irish ports in 2022. The Minister also stated that Revenue currently operates twenty-three Detector Dog teams, previously quoted as running at a cost of €40,000 per unit per year. 

    The Public Health (Tobacco and Nicotine Inhaling Products) Bill will introduce a new licensing system which will add a further unnecessary administrative burden and cost on retailers, without addressing a huge underlining issue. Illegal tobacco, some of dubious origin continues to enter Ireland in huge amounts. Retailers Against Smuggling (RAS) proposes that 30% of the funds collected from the licence fee are ringfenced for initiatives that will deal with the growth of smuggling activities in the country. 

    Illegal tobacco sales have soared over the past year with the issue now becoming a chronic challenge. With the increase in international travel and increased smuggling, Ireland’s streets are awash with illicit tobacco.  In the space of just one week (25-31 May, 2023) Revenue seized nearly 8 million cigarettes at Dublin Port representing a loss of €5m to the Exchequer; with two further major seizures of 10 million cigarettes on June 9, and €10 million worth of counterfeit cigarettes seized in Dublin on July 4, showing the size of the illegal tobacco market in Ireland.  

    National Spokesperson for Retailers Against Smuggling, Benny Gilsenan said: “It’s no surprise that the illegal cigarette trade has grown in recent years following a cost-of-living crisis. Border agencies don’t have the resources required to fight smuggling at our ports and airports. With the one of the highest prices for tobacco in Europe you can see why Ireland has become a destination for criminals to sell tobacco. We can see from these figures that Revenue needs all the support it can get, we must add more scanners and personnel at entry points across the country.” 

  • One in Three Retailers Along the Border Concerned that Brexit will Create a Bigger Market for Smuggling Along the Border.

    28th September 2017, Dublin

    A cross-border survey conducted by Retailers Against Smuggling (RAS) has revealed that one in three retailers in Ireland are concerned about the rise in criminality and illicit trade following the decision of the UK to leave the European Union last year. Responses from 114 retailers in the counties of Donegal, Cavan, Monaghan, Sligo and Louth were recorded, along with 101 additional retailers across Northern Ireland. The survey results come weeks after Minister for Foreign Affairs Simon Coveney declared that Ireland’s interests would be at the forefront during Brexit talks. Smuggling and illicit trading increases must remain an important factor for the Irish government during border negotiations.

    The results showed that of those surveyed in the border counties, one third of retailers feel Brexit will create a bigger market for smuggling in the county, while 44% have noticed a significant increase in smuggled products and illicit trade in recent years, particularly since Brexit. This figure rises to 56% of their counterpart retailers north of the border.

    One-third of all retailers surveyed believe that Brexit will lead to a further presence of the black-market along the border and significant losses to the Exchequer, as well as their own businesses.

    RAS spokesperson and small business owner, Benny Gilsenan said “when a customer doesn’t buy their cigarettes in my shop, that means they’re not buying their pint of milk, they’re not buying their sliced pan. It has a huge knock on effect on small businesses”.

    Retailers on both sides of the border can no longer compete with the illicit trade of smuggled products. In terms of illicit trade, cigarettes and loose tobacco are by far the most urgent concern for retailers. Mr Gilsenan continued “smuggling is a constant concern for us as retailers. A packet of cigarettes bought on the street costs the consumer less than half price of what they would pay in a shop. A legitimate retailer selling a packet of cigarettes for €11.50 simply cannot compete with a smuggled pack that costs just €5. The Government needs to protect legitimate Irish retailers from the consequences of illicit trade”

    According to Revenue’s Illegal Tobacco Products Research Survey 2016, 10% of cigarette packs in Ireland are classified as illegal and a further 8% are Non-Irish Duty Paid. In a report released by Grant Thornton in 2015 found that a key driving force for the illicit trading of tobacco and alcohol is the continuously increasing level of excise duty on products. Half of all Irish retailers surveyed believe that the key to undermining cross-border smuggling of tobacco and alcohol is to harmonize tax and price differentials between Northern Ireland and the Republic of Ireland.

    The survey also revealed a shocking lack of trust in authorities both north and south of the border, with only 13% of those surveyed having confidence in the ability of authorities to tackle smuggling. There is a massive disparity between alcohol seizures and summary convictions in Ireland. In 2016 there were 1,875 seizures of illicit alcohol in the country, but only four summary convictions. Border retailers indicated in the survey that they would like to see the purchasing of illicit goods to be made an offence. This provision was one of the key measures proposed under the Sale of Illicit Goods Bill, which made it an offense for a person to buy alcohol, tobacco or solid fuel from an unregistered retailer.

    A roundtable discussion was held yesterday in Dublin to tackle Brexit, the Border & the Black Market. The event was co-chaired by Kevin Doyle, Group Political Editor at the Irish Independent, and Allison Morris, Security Correspondent from the Irish News. Members of An Garda Siochana, the PSNI, HMRC and political parties from both the Republic and the North met to discuss the issues that retailers on both sides of the border will face in the coming months and years. “The people that attended this roundtable discussion are the ones who can make a real impact. Events like this need to happen more often, it’s so important to keep the conversation going between officials in the Republic and the North. We need to work together on this.” Said Mr Gilsenan.

  • OLAF calls for targeted national awareness-raising campaigns to fight cigarette smuggling

    21 July 2016

    Retailers Against Smuggling (RAS), representing over 3,000 retailers across Ireland, welcome the Eurobarometer survey OLAF (European Anti-Fraud Office) commissioned to explore the attitudes and opinions of Europeans on the cigarette black market in order to help Member States better target awareness-raising campaigns to fight cigarette smuggling. RAS have previously called for this in their pre-Budget submission and hope the government will use these interesting results to raise awareness of the impact the black market has on our economy and on legitimate tax paying businesses. The survey, entitled “Public perception of illicit tobacco trade”, pooled the answers of 27,672 respondents from different social and demographic groups in 28 Member States.

    Retailer and RAS Spokesperson Benny Gilsenan reacted to the survey results today: “of the 1,000 interviewees from Ireland, 81% of them would purchase illegal cigarettes because they are cheaper (compared to 74% in other EU countries). Illicit tobacco products can be bought from criminals for €4-5 which undercuts the legitimate retailer by 50%, yet our Governments is looking to further increase excise tax. Each time we increase excise tax, we allow for an increase in the illicit trade of cigarettes when what we really need is the enforcement of current legislation and more resources for Revenue”. RAS pre-Budget 2017 submission calls for a moratorium on further excise increases until such increases can be proven not to encourage smuggling as a result of price differentials. The Healthy Ireland Survey (October 2015) found that smoking levels are higher amongst those living in the most deprived areas and in lower social classes. Therefore increases in excise tax on cigarettes directly affects the poor and marginalised in society and in turn leads to the diversion of smokers to the illegal cigarette market.

    The survey also found that Irish respondents are twice as likely to see black market cigarettes as the second most important source of revenue for organised crime than other EU Member States (30% in IE, 14% in other EU MS). “It is clear that the Irish respondents see the black market as a major source of profit for criminals in Ireland. In order to tackle this hugely profitable illegal trade and to protect legitimate businesses the government needs to make it illegal to purchase tobacco or fuel products on which the carbon tax or tobacco excise has not been paid and allow for the repeal of market licences by Local Authorities where illegal goods are being sold”. 39% of Irish respondents also worry about the revenue for organised crime, compared to 35% of other EU Member States respondents.

    Benny concluded “it is clear that Irish citizens are worried about the impact of the illicit trade of cigarettes and we hope that the Government will take into consideration the measures in our Budget submission in order to protect the future of legitimate businesses”.

  • As the Black Market continues to grow, what will the new Government do differently to tackle the blight of smuggling?

    27 May 2016

    Despite the prevalence of smoking in Ireland decreasing from 22% in 2009 to 17% in 2014 (Department of Health), the illicit trade of tobacco continues to be a huge burden on the public purse with an annual loss of revenue to the Exchequer. In the first five months of 2016 Revenue seized smuggled cigarettes and tobacco products worth almost €12.3 million to the Exchequer, an increase of €2 million during the same period in 2015. Meanwhile, the solid fuel sector has expressed concern over the fact the Revenue have no reliable way to estimate the size of the smuggled solid fuel trade across the border.

    This €2 million increase came following the excise increase of 50c in October 2015. Benny Gilsenan, retailer and Retailers Against Smuggling (RAS) spokesperson for Leinster, commented “I struggle to see the logic of increasing excise tax not only because it drives people to the Black Market for their €3-4 pack of illegal cigarettes but it also leads to a tobacco tax yield budget shortfall which was calculated by the government in 2015 as being €223 million. In the run up to the budget, the Government really has to address the elephant in the room which is that excise increases are only contributing to the problem. ” On that basis alone, RAS calls for a moratorium on further excise increases until levels of smuggling are tackled.

    In its 2015 Annual Report, Revenue found that 12% of cigarettes packs held by smokers were classified as illegal. Benny continued “The fact that 1/10 cigarette packs are illegal highlights that more intervention is necessary by the new Government to cut off the blood supply of these multi-million euro businesses run by criminal gangs. Legitimate businesses like mine are being directly affected. We pay all of our taxes, the tobacco retail licence fee and adhere to the Show Me ID programme so the Government should be protecting our legal businesses.” Increased spot checks by Environmental Health Officers on non-retail outlets are necessary to prevent the sale of illicit tobacco products and solid fuel.

    “To make matters worse, of the 5,927 seizures in 2015 fines averaging €2,656 were imposed in just 89 cases. The current legislation for attaching fines only covers those already in employment. It is clear to me that this needs to be extended to those unemployment or on benefits in order to begin to deter people from selling smuggled goods on our streets” said Benny.

  • Retailers call for next Programme for Government to seriously commit to tackling the illegal trade of tobacco and fuel.

    15 March 2016

    In a letter sent today to all parties, Retailers against Smuggling (RAS) set down an Action Plan which it believes will go a considerable way in stamping out the unacceptable levels of competition legitimate retailers’ face from criminal gangs who sell illegal tobacco and fuel.

    “While the formation of the next Government is not yet clear, the issue of the illegal tobacco and fuel trade continues to be a significant issue for retailers nationwide. Small legitimate businesses rely on the legal cigarette trade for 10-30% of our business and these criminals selling cigarettes on our streets are directly impacting us. We believe the targeted approach in our action plan will be effective” said Benny Gilsenan, spokesperson of RAS.

    A key ask of the RAS Plan is the establishment of a Working Group on illegal trade in Ireland. This Group would invite all interested and affected parties to participate and would review the impact draft legislation would have on smuggling. These findings could then feed into policy debate in Dáil Éireann. “This Group would give retailers and others affected by the black market the opportunity to highlight the impact it has on their businesses and communities” commented Mr Gilsenan.

    In addition to the Working Group, Retailers Against Smuggling Action Plan also calls for:

    1. Making it illegal for a person to purchase illicit cigarettes
    2. Additional resources for An Garda Siochána and the Revenue Commissioners, for the work of the Joint Agency Task Force, set up under the terms of the 2015 A Fresh Start Agreement, to tackle cross-jurisdictional organised crime
    3. A moratorium on further excise increases until such increases can be proven not to encourage smuggling as a result of price differentials.
    4. An extension of the Fines (Payment and Recovery) Act 2014 to cover all those deemed to have illegally smuggled cigarettes or fuel, regardless of that person’s means.
    5. An extension of the investigations scope of Revenue to non-registered retail outlets; for those outlets which are repeat offenders of selling illicit cigarettes and tobacco, the serving of closure orders.
    6. A repeal of market licences by local Councils where illegal goods have been found to be sold
    7. Increased inspections of non-tobacco and non-fuel retail shops by the EHO

    Retailers Against Smuggling are fully behind the Joint Agency Task Force, set up under the terms of the 2015 A Fresh Start Agreement, to tackle cross-jurisdictional organised crime. “Smuggling along the Border has been a major route of black market goods that threaten the livelihood of small retailers right across the country. We have had enough and it is time to put a stop to this criminality once and for all” said Mr Gilsenan.