illicit trade in tobacco

TISA turns spotlight on illicit trade in tobacco products. The message is clear: those who persist in dealing illegally in tobacco products: beware! The legal tobacco industry, government and law enforcement agencies are working tirelessly to combat the illicit trade in tobacco products. This was evident in presentations made at the TISA Anti-illicit Trade Day held on 3 September 2007 at the Sandton Sun and Towers.

The day was attended by international customs and law enforcement officials as well as senior tobacco industry officials involved in regional efforts to combat the illicit trade in tobacco products. Visiting officials represented the following countries: Uganda, the Democratic Republic of the Congo (DRC); Kenya; Nigeria; Ethiopia; Turkey and the United Kingdom.

The purpose of the TISA day was to present to visitors what is being done by South African customs and law enforcement agencies and the SA tobacco industry in combating the illicit trade in tobacco products. TISA members, their service providers and officials from SA Revenue Service (SARS), the SA Police Service (SAPS) and Directorate of Special Operations (DSO) were invited to attend as well as present their findings and views on combating of illicit trade in tobacco products.

Some shocking statistics:

More than 10 million illegal cigarettes are sold in South Africa daily.

This equates to a loss of approximately R 1.4 billion in revenue for Government and a similar loss for the legitimate industry.

Currently, illicit trade in tobacco products is estimated at around 20% of the total market and growing from almost non-existent 10 years ago.

The golden thread throughout all presentations made is that without cooperation on a local, regional and global level, individual efforts by the tobacco industry, law enforcement agencies and governments are futile.

Some initiatives in South Africa that industry and government are jointly looking at include amongst others:

The phased licensing of the entire supply chain

The creation of a database on tobacco industry role players and all brands manufactured, imported and sold in South Africa

Revised customs and excise legislation to close loopholes

Review of fiscal marking and tracking and tracing issues

A commitment towards building relations, strengthening cooperation and efforts in the combating of illicit trade in tobacco and tobacco products was made by all present.

It is the first time that TISA organised a day of this nature and based on feedback received, similar events will be hosted in the future.