RAS Blog

Tag: Tobacco Products Research Survey

  • 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 and the Exchequer suffer as over 520 million cigarettes bought illegally or brought from overseas

    25 April 2018

    Following the release of Revenue’s Annual Report 2017 and Ipsos MRBI Illegal Tobacco Products Research Survey 2017, Retailers Against Smuggling (RAS) is again calling on the Government to provide more resources to combat smuggling, particularly due to the uncertainty caused by Brexit.

    The published reports show a marked increase in the trade of illicit goods in Ireland. Ipsos MRBI Illegal Tobacco Products Research Survey 2017 found that approximately 520 million illegal cigarettes (26 million packs) were consumed in Ireland in 2017, representing a loss to the Exchequer of approximately €229 million. Revenue’s report also highlight the disparity between cigarette seizures and summary convictions: of the 4,493 illegal cigarette seizures in 2017, there were only 26 convictions.

    Small and medium-sized retailers’ trade is being undercut by smugglers, and the Revenue report reiterates the depth of the involvement of criminal gangs in smuggling of illicit tobacco in particular. RAS have repeatedly voiced their concerns about the impact of the introduction of a 30g minimum RYO pouch size in May 2017. Following the introduction of this minimum, Ipsos MRBI Illegal Tobacco Products Research Surveys 2017 found that the number of illicit RYO pouches held by smokers surveyed has almost doubled in the last year – jumping to 15% in 2017 from 9% in 2016.

    RAS spokesperson, Benny Gilsenan, commented: “Revenue’s statistics show once again that Ireland still has a huge problem with the illicit trade, which harms small retailers and strengthens criminal gangs. These activities put retailers out of pocket and are happening because of a lack of awareness of the impact smuggling has on retailers, as well as a paucity of investment in combatting it,” Mr Gilsenan remarked.

    Mr Gilsenan concluded: “RAS is calling for proper enforcement of the current legislation to ensure those who sell illicit products are met with the full force of the law. Retailers nationwide have paid all the relevant duties and taxes, and are missing out on revenue and footfall as a result.”