GTNF 2023: Addressing Illicit Trade in Cigarettes

On September 21st, the final day of the GTNF forum, Julian Cheung, the Regional Director of Anti-Illicit Trade for JTI Asia Pacific, delivered a speech in the morning. Cheung expressed that the issue of illicit cigarettes (referring to counterfeit and contraband cigarettes) is not an isolated problem but rather a result of larger criminal backgrounds and criminal ecosystems. Many consumers are unable to determine whether the cigarettes they purchase are counterfeit or illegally imported genuine products.

Julian Cheung introduces the illegal tobacco trade, which typically sees cigarettes being smuggled from low-consumption countries to high-consumption countries. Due to this illicit trade, governments suffer an annual loss of approximately $40-50 billion in tobacco tax revenue. This criminal activity is carried out across borders, thus urging the need for multinational law enforcement efforts to combat illegal cigarette smuggling. The COVID-19 pandemic has further exacerbated the issue as illegal cigarette trade has shifted online, making it even more difficult to control. In 2022, the value of illegal cigarette trade reached a staggering $40 trillion, with counterfeit cigarettes accounting for 33.9% of the global total. Smugglers play a vital role in facilitating cross-border illegal cigarette trade, with significant numbers found along the Thailand-Myanmar border, China-Vietnam border, and Malaysia-Indonesia border, helping transport and carry illicit cigarettes.

Julian Cheung pointed out that if cigarette prices increase by 10%, the scale of illegal trade on average grows by 7%.