Illicit tobacco

The trade in illicit tobacco is a global phenomenon which contributes to the growth of transnational organised crime and undermines public health objectives.

For an overview see: ASH Scotland briefing on illicit tobacco (updated July 2011)(pdf 72kb)

Trading Standards have delegated powers by virtue of S14(1) (c) of the Commissioners of Revenue & Customs Act 200519 to seize or detain tobacco products in respect of a number of offences committed under HMRC legislation however, in most cases this is likely to be limited to the following:

• S8G Tobacco Products Duty Act 1979 (TPDA)20
  Tobacco products, that is cigarettes and hand rolling tobacco that are required to bear a fiscal mark (whether counterfeit or not) and which do not, are liable to forfeiture.
  Any person who is on possession of, transports or displays; or Sells, offers for sale or otherwise deals in unmarked tobacco products commits an offence.
  The penalty is a fine up to a maximum of £5000.
• S8J Tobacco Products Duty Act 1979
  Products bearing fiscal marks which have been altered or overprinted are liable to forfeiture It is important that Trading Standards establish contact with
  HMRC officers so that any seized goods can be passed over
  with minimal complication

Scottish Government strategy

In February 2009 the Scottish Government launched the Enhanced Tobacco Sales Enforcement Programme. Part of this initiative aims to tackle the availability of illicit tobacco products in local communities across Scotland. The scheme involves local authority trading standards services working in partnership with HM Revenue and Customs and sets targets for the number of joint operations to be carried out on illegal tobacco at local and national level between 2008-09 and 2010-11. (1)

Under this programme six joint operations were carried out in 2008-09 resulting in the seizure of 16,760 cigarettes and 16 joint operations took place in 2009-10 leading to the seizure of 720,580 cigarettes. (2)

UK Government strategy

In April 2011 a renewed strategy for tackling tobacco smuggling was launched by the government. Key objectives in the new strategy include:

• expanding tobacco criminal intelligence and investigation capacity by 20% to prosecute more of those involved in smuggling at all levels;
• expanding the Fiscal Crime Liason Officer network; introducing new technology, intelligence and detection capability;
• pursuing proceeds of crime and applying new powers of assessment and penalties, including recovering lost taxes and charging penalties up to 100% of the tax evaded;

bringing the UK into line with all other EU Member States by reducing the minimum indicative levels for personal imports to 800 cigarettes and 1kg of hand-rolling tobacco in the autumn.⁽³⁾