Enforcement

The UK Insolvency Service said YSK Enterprises imported large quantities of vapes from China in 2023, with a shipment addressed to the company declared as medical nebulizers before Border Force found 352,688 vaping products. HMRC calculated nearly £15 million ($20.3 million) in unpaid VAT and customs duty, alongside about £437,000 in corporation tax. Two directors were disqualified for nine years. The case predates the UK's Vaping Products Duty, which will introduce vape-specific excise and duty-stamp requirements from October 2026.

Australia’s state of Victoria has activated new powers allowing Tobacco Licensing Victoria and police to shut premises suspected of selling, supplying or possessing illicit tobacco for up to 90 days. Longer closures can be ordered by a magistrates’ court. Businesses subject to closure orders must generally cease all trading and will be placed on a public list. Breaching a closure order can carry penalties of up to A$2.5 million and 20 years in prison.

According to The Maritime Executive on August 19, 2026, the Australian Border Force (ABF) and China’s Anti-Smuggling Bureau of General Administration of China Customs worked together to dismantle an international illicit tobacco smuggling network targeting Australia. According to information released by ABF on August 20, sustained information sharing and cooperation led to investigations into 112 shipping containers, with 91 found to contain illicit tobacco. Authorities seized more than 60 million cigarettes and 60 kilograms of loose-leaf tobacco, representing more than A$92 million in unpaid duties. More than 60 people suspected of involvement in the network were arrested in China.

Australian authorities have disclosed two major enforcement actions that go beyond product seizures and retail closures to examine how illicit tobacco and vape networks operate. On Aug. 14, the Multi Agency Strike Team said seven people had been charged and two criminal networks were valued by authorities at a combined A$80 million, or about US$56.8 million. Investigators allege the groups used bonded warehouses, freight businesses and “trusted insiders” in legitimate industries to circumvent border controls. In a separate operation on Aug. 11, more than 100 service stations were targeted as authorities sought information on illicit tobacco importation, distribution networks and the movement of sales proceeds.

Chinese authorities have dismantled an illegal hookah tobacco operation worth more than 46 million yuan ($6.8 million), detaining five foreign suspects and seizing over 500,000 boxes of tobacco paste. The case comes as hookah expands across China’s nightlife sector and attracts overseas operators, including former vaping entrepreneurs. It also raises a central regulatory question: whether waterpipe tobacco will follow China’s private-sector e-cigarette licensing model or be reserved for the state tobacco system, as with nicotine pouches, in the years ahead.

The UK government has announced that HM Revenue & Customs (HMRC) will carry out more than 30,000 interventions targeting businesses and retail premises during the 2026-2027 financial year. The actions will focus on tax fraud, illegal goods sales and businesses involved in unlawful activities through retail channels. The government said illegal tobacco and illegal vape sales remain areas of concern. The move shows that UK enforcement against illegal nicotine products is expanding from import and supply channels toward retail-level oversight, alongside the upcoming introduction of the Vaping Products Duty.

Quebec police seized about 300,000 suspected illegal vape products and froze more than C$1.8 million in funds. Local media said vapme.ca, a website selling flavoured vape products, was shut down during the operation.