Tobacco, Nicotine, and Illicit Markets

How San Francisco e-cig ban could cause a “thriving black market” writes Juul spokesman. Will new Vermont e-cigarette tax lead to a black market?

Vaping may be more dangerous than we realized.

Federal judge gives tobacco manufacturers 10 months to comply with planned tighter FDA regulations.
Judge Paul Grimm for the District of Maryland ruled that manufacturers have until May 11 to file pre-market applications for electronic cigarettes.

Chuck Schumer calls for crackdown on flavored e-cigs from China. China cops catch 24 in $17 million smuggling case. China to help Philippines fight smuggled cigarettes.

Gang caught with 9 million illegal cigarettes in Wellinborough, UK. Jailed UK shopkeeper ordered to repay £500k he made from selling illegal cigarettes or face more time behind bars. Four UK men caught smuggling over 150,000 cigarettes from Iraq.

Bulgaria‘s largest illegal cigarette factory was discovered yesterday.
The workers, from Ukraine and Moldova, lived in an area set up for them inside the warehouses, without any communication to the outside world. Bulgaria destroys over 24 tons of illicit tobacco.

Uncle Fish Fillet jailed over Australia tobacco and meth ring.

Impact of tax increases on illicit cigarette trade in Mongolia.
Methods Discarded cigarette packs were collected in the capital city and two provinces. Tax increases occurred between all three rounds (4/17, 8-9/17, 5-6/18). Cigarette packs are identified as illicit if there is evidence that tax was not paid. This is deduced from the absence of the Mongolian excise tax stamp, or the absence of glue residue. Data are weighted to represent the areas sampled.
Results In round 1, 15.4% of the collected packs were illicit. This estimate decreased to 13.6% in round 2 and to 6.3% in round 3. While the majority of illicit products are supplied by global companies (Korea Tobacco & Ginseng, Imperial Tobacco and Philip Morris Kazakhstan), one local company, Mongol Tobacco SO, is also implicated.
Conclusions The share of illicit cigarettes declined between rounds 1 and 2 despite the import tax increase, and this trend continued in round 3 despite the excise tax increase.

Transcrime’s research focuses on the estimate and analysis of the transnational flows of illicit cigarettes in Europe, North Africa, Mid-East and Asia.

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