Concern over surge in illegal tobacco seizures

NORTHSIDE shopkeeper and spokesperson for Retailers Against Smuggling (RAS) Benny Gilsenan has expressed unease over the amount of illegal cigarettes being imported despite Covid-19 travel restrictions.

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

An analysis of Revenue’s seizures by RAS found that there was an almost fivefold increase over the year, indicating that Ireland continues to be a target for tobacco smugglers in spite of restrictions on travel.

Gilsenan, who owns a convenience store close to Croke Park, described the increase in seizures as “a significant concern”.

“We commend and fully support the hard work undertaken by Revenue and An Garda Síochána in the fight against illicit trade,” he said.

“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 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.

In recent weeks, there have been significant seizures of illegal cigarettes at Dublin Airport and at the port.

Over 12,000 cigarettes were seized in July when Revenue officers, with the assistance of detector dog Obi, searched the baggage of two male passengers who had arrived from Malaga, Spain.

And in June, as a result of routine profiling, Revenue officers seized 3.5 million cigarettes and 3.9 tonnes of processed tobacco in Dublin Port. The cigarettes, branded ‘Richmond’, were labelled as ‘engineering components’.

Both shipments originated in Germany and with a retail value of €3.8 million, represented a loss to the Exchequer of €3.25 million.

Illegal Tobacco Products Research Surveys carried out by Revenue last year revealed 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.

The same Revenue survey found that 12 per cent of the Roll Your Own tobacco packs held by smokers surveyed were illegal in 2019.

“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,” Gilsenan said.

: “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.”