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Tobacco Smuggling

Dáil Éireann Debate, Tuesday - 24 January 2012

Tuesday, 24 January 2012

Ceisteanna (101, 102)

Dominic Hannigan

Ceist:

121 Deputy Dominic Hannigan asked the Minister for Finance the steps the agencies under his aegis are taking to stop the illegal smuggling of contraband cigarettes into the country; the number of cigarettes that have been seized in each of the years 2007, 2008, 2009, 2010 and 2011 in tabular form including the location at which the cigarettes were seized; the steps he is taking to highlight the risks of smoking these cigarettes to the general public; the way in which the seized cigarettes are dealt with; and if he will make a statement on the matter. [3506/12]

Amharc ar fhreagra

Dominic Hannigan

Ceist:

122 Deputy Dominic Hannigan asked the Minister for Finance the location at which the testing takes place on tobacco that is seized at entry points to the country; the amount of tobacco that has been tested by the State in the years 2007, 2008, 2009, 2010 and 2011, in tabular form; the form this testing takes; and if he will make a statement on the matter. [3530/12]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 121 and 122 together.

I am informed by the Revenue Commissioners, who are responsible for the collection of tobacco products tax, and for tackling the illicit trade in cigarettes and tobacco products, that the strategy employed by Revenue to tackle this illicit trade is multi-faceted. It includes ongoing analysis of the nature and extent of the problem, developing and sharing intelligence on a national, EU and international basis, ongoing review of operational policies, development of analytics and detection technologies, and optimum deployment of resources at point of importation and inland, in order to intercept the contraband product and to prosecute those involved.

Interception at the point of importation is achieved through a combination of risk analysis, profiling, intelligence, and the screening of cargo, vehicles, baggage and postal packages. Revenue enforcement officers also target this illicit trade at the post-importation level by carrying out intelligence-based operations and random checks at retail outlets, markets and private and commercial premises. Since mid-2010, Revenue has conducted a series of nationwide intensive tobacco "blitz"-type operations, concentrating additional Revenue resources at ports, airports and at selected inland retail points, including markets, for the purpose of identifying and seizing illicit tobacco products. To date, Revenue has conducted nine such national tobacco "blitz" operations resulting in the seizure of over 34.6m cigarettes and 1,715 kgs of tobacco. These intensive operations are of course additional to Revenue's ongoing day-to-day operations targeting illicit tobacco product.

Revenue also carries out regular multi-agency operations, particularly in relation to large maritime importations. Revenue both provides and receives intelligence from other Customs Administrations and works closely with the European Anti-Fraud Office, OLAF, in its efforts to tackle the illicit sale of tobacco at an international level. This international cooperation and sharing of intelligence and expertise plays an important role in combating illegal tobacco smuggling on a global basis.

The Revenue Commissioners have established a high-level internal group, chaired at Commissioner level, to examine the risks related to tobacco products tax evasion and to oversee and optimise the detection of contraband and counterfeit tobacco products. This group has promoted a number of initiatives aimed at counteracting the illicit trade in tobacco. These include the adoption of a comprehensive tobacco strategy, which is underpinned by annual action plans. This 3-year (2011-2013) strategy, which is published on Revenue's website www.revenue.ie, includes a number of programmes which are designed to complement each other in targeting the supply and demand sides of the market for contraband tobacco in Ireland.

Revenue's strategic-level plans include the taking of steps, to ensure that the legitimate trade remains compliant, delivering more effective and visible interventions through enhanced capability and better deployment of its resources, further development of cooperation and intelligence sharing at organisational, national and international level, a commitment to prosecute all serious cases of tobacco tax evasion and a focus, in partnership with other Government agencies, on reducing the demand for contraband tobacco.

The table lists the quantities of cigarettes and tobacco seized per Revenue Region between 2007 and 2011.

Year

Region

Cigarettes

Tobacco (Kgs)

2007

Border Midlands and West

1,652,310

38

Dublin

67,016,342

1,219

East South East

2,697,893

31

South West

3,133,941

228

Total

74,500,486

1,516

2008

Border Midlands and West

5,650761

67

Dublin

111,521,379

2,587

East South East

14,403,092

116

South West

3,625,403

313

Total

135,200,635

3,083

2009

Border Midlands and West

125,922,257

337

Dublin

81,910,216

9,451

East South East

7,048,071

380

South West

3,645,684

284

Total

218,526,228

10,452

2010

Border Midlands and West

41,313,937

351

Dublin

98,474,429

1,398

East South East

7,150,076

316

South West

31,493,729

1,303

Total

178,432,171

3,368

2011

Border Midlands and West

9,955,640

199

Dublin

78,398,674

7,067

East South East

8,107,251

3,315

South West

12,603,964

575

Total

109,065,529

11,156

The issue of public information in relation to the dangers of smoking is a matter for my colleague, the Minister for Health.

I am informed that all cigarettes and tobacco seized by Revenue are securely destroyed under Revenue control. With regard to the Deputy's question on the subject of the testing of tobacco, the Commissioners inform me that the testing of seized cigarette and tobacco products is not, as a matter of course, carried out by the State.

Legally binding agreements have been signed between the European Commission and member states (including Ireland) on the one hand and the four major global tobacco manufacturers on the other, with the objective of instituting formal cooperation arrangements to combat cigarette and tobacco smuggling. The manufacturers include Philip Morris International (PMI), Japan Tobacco International (JTI), British American Tobacco (BAT) and Imperial Tobacco Ltd (ITL). The agreements include the provision of enhanced support to European law enforcement bodies in the battle against the illegal trade in tobacco products. This support also includes the testing on request of selected seized tobacco products to establish whether they are genuine or counterfeit. Under these agreements, the four tobacco manufacturers appear before representatives of the European Commission and the member states on an annual basis to report on the progress of the agreed cooperation commitments.

In addition to this, Revenue has signed Memoranda of Understanding with two of the main cigarette manufacturers, ITL and JTI, and is in the process of agreeing Memoranda of Understanding with PMI and BAT, to further cooperation in relation to the illicit tobacco trade.

Where large consignments bearing established brand names are seized, test samples are forwarded to the relevant tobacco brand manufacturer, who, as the legal intellectual property rights holder, confirms in accordance with the Europe-wide agreements, whether or not the seized product is counterfeit. For logistical and resource reasons, the more numerous small seizures of tobacco products are not forwarded for individual testing. All contraband tobacco is liable to seizure as untaxed product smuggled into the State irrespective of whether it consists of genuine or counterfeit product.

The table lists the number of samples of both cigarettes and tobacco forwarded to the tobacco manufacturers for testing between 2007 and 2011.

Year

Number Of Samples

Number confirmed counterfeit

2007

13

2

2008

12

9

2009

15

9

2010

19

19

2011

16

8

The Revenue Commissioners inform me that the precise methodologies used to determine whether seized products are genuine or counterfeit are a matter for the relevant intellectual property rights holders, who in accordance with European Union and national intellectual property rights legislation are the certifying and accountable entity in this regard.

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