Monthly Archives: March 2011

Brazil Loses R$2 Billion in Taxes with Contraband Cigarettes

From CRE Brazil

Each year, Brazil loses nearly R$2 billion in taxes due to contraband cigarettes. This estimate was announced last month by the industries after comparing information from market research and sales quantities. According to calculations, approximately 16% of the cigarette business in the country is illegal and the distribution of contraband products is growing by about 2% a year.

The amount that is not paid to the government is about the same; for example, the 2.1 billion used by the federal government last year in rebuilding cities hit by natural disasters

 
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Cigarette Counterfeiting, Problems and Thoughts on Countermeasures

From: China Tobacco/Shandong Provincial Tobacco Monopoly Bureau

Editor’s Note: Translation courtesy of the Center for Regulatory Effectiveness

Although China’s is working to crack down on counterfeit cigarettes, the manufacturing and sale of fake smokes is a covert activity that changes location, has the strong ability to regenerate. Counterfeit cigarette cases are increasingly complex. The counterfeit cigarette trade is conducted by large organizations and results in the loss of State revenue. The high level of chemicals in counterfeit cigarettes will affect the health of people to a certain extent. If the problem of counterfeit cigarettes is not solved as soon as possible, is bound to affect the healthy and orderly development of China’s tobacco market as a whole. So, what are the harms from making and selling fake cigarettes? 

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Tianjin police uncover a serious counterfeit cigarette case

Editor’s Note: Translation courtesy of the Center for Regulatory Effectiveness

Tianjin Hong, March 24 (reporters Wang Jiajun, Ding Xiaobing, Shi Jiao).

Recently, the Tianjin police cracked the case of large groups trafficking in counterfeit cigarettes with a value of over one million yuan. Police indicated that in recent years, the groups have been taking orders for manufacturing and selling counterfeit cigarettes. So where are counterfeit cigarettes sold and where does the demand come from?

Tianjin police deployed more than 150 elite police in the Beichen District village where an underground counterfeit cigarette factory was confiscated.

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Zhenhai News Network: Nearly 3,000 Counterfeit Cigarettes Were Destroyed

Editor’s Note: Translation courtesy of the Center for Regulatory Effectiveness

Source: http://www.cnnb.com.cn/, Ningbo, China Network   March 22, 2011

Zhenhai News Network (correspondent Chen Feng-shan) reported today that nearly 3,000 counterfeit cigarettes and 2.5 tonnes of low-quality silk were destroyed. The value of the counterfeit cigarettes was 736,000 yuan and involved nearly 20 brands.

“Most of the consignment was seized in transport or shops.” District Tobacco Monopoly Bureau staff said. There were dozens of ways to tell the cigarettes seized were counterfeit, mostly counterfeit famous brands, which show some authenticity but are also full of flaws. “At a glance it could be determined the cigarettes were produced in an underground factory. For instance, some of the brands have never produced hard pack cigarette boxes that in the market were actually for sale.”

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Cigarette Ban Would Slash State Revenues

By MERRILL GOOZNER, The Fiscal Times
March 20, 2011

A Food and Drug Administration advisory committee on Friday said banning menthol cigarettes will be a boon to public health, especially among young people and African-Americans, for whom mentholated brands are often a gateway to lifetime smoking.

But strategies that are good for public health are starting to adversely  affect federal and state revenues. Raising taxes on the declining number of people who smoke has finally reached a tipping point with revenues generated by cigarette taxes starting to fall, according to government documents and data provided by the Campaign for Tobacco Free Kids.  A menthol ban would accelerate the trend.

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Reporter smokes out tobacco gangs

A BBC investigative reporter went undercover to learn about the counterfeit cigarette trade in the UK and found that counterfeit cigarettes contain 30 times as much lead as legal products.

Watch the BBC video.

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TPSAC Concludes: “Should FDA choose to implement a ban…FDA would need to assess the potential for contraband menthol cigarettes as required by the Act.”

 The above statement is contained in the TPSAC  report on menthol.

 CRE compliments  TPSAC for its recognition of the significant impact contraband will have on increasing youth access to cigarettes, exposing smokers to unacceptably high levels of toxic metals and exposing both smokers and non-smokers to an increase in violence as a result of funding organized crime and terrorists groups.

The TPSAC statement is consistent with the repeated statements CRE made before TPSAC.

FDA’s review should be augmented by  an orderly examination of the contraband issue by academics, enforcement officials and the public. To this end, CRE has under consideration the establishment of an Interactive Public Docket  (IPD) dedicated to contraband.

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Counterfeit Cigarettes Abound In China

From: ShanghaiDaily.com

By Claire Wang

In the file photograph taken on February 25, a police officer shows cigarettes discovered in an illegal factory hidden 6 meters underground in Fujian Province.

A FACTORY making counterfeit cigarettes, hidden deep underground in southeast China’s Fujian Province, was raided by the authorities, Xinhua news agency reported yesterday.

The factory was more than 6 meters beneath the ground in Yunxiao County. It had a storehouse of 20 square meters and a complete production line covering the whole cigarette manufacturing process.

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Counterfeiting and Piracy in Brazil

COUNTERFEIT CIGARETTES

Brazil is flooded with counterfeit cigarettes. Tobacco companies lose hundreds of millions of dollars annually to smuggled or fake cigarettes.

These illegal cigarettes now represent 34 percent of the volume of cigarettes sold per year, jumping from 5 percent of the market in 1991 and 20 percent in 1995.

Approximately 51 billion cigarettes are sold illegally every year in the Brazilian market out of a total of 150 billion cigarettes sold per year, mainly originating in Paraguay.

Economic Impact

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e-cigarette Community Interest in Curtailing Contraband Cigarettes

 A post by the e-cigarette community at

http://www.e-cigarette-forum.com/forum/e-cigarette-news/166128-health-effects-counterfeit-cigarettes.html

suggests it may be a great source of analytical and newsworthy information on counterfeit cigarettes. Here is CRE’ s invitation  to them:

To Members of the ECF:

We were particularly impressed with this post made by Thalium:

http://www.e-cigarette-forum.com/forum/e-cigarette-news/166128-health-effects-counterfeit-cigarettes.html

We have an Interactive Public Docket dedicated to counterfeit cigarettes, see

http://www.thecre.com/cc/

The IPD is in Beta, meaning it will go live shortly. The home page is restricted to posts made by CRE.  However you will note three Discussion Forums on the right hand side of the page accepts posts from the public.  When they are up and running we would appreciate your views.

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