UICC GLOBALink Presents...
The Tobacco Reference Guide
by David Moyer, MD.


Chapter 31 Tobacco exports, imports and smuggling

tobacco reference guideg (artefact pour

Tobacco exports, imports and smuggling: Smuggling

globalink (artefact pour saut de ligne)

The European Union is investigating smuggling activities by RJ Reynolds and whether

the company is selling cigarettes to traders and dealers who immediately resell them

in the black markets to avoid foreign taxes. The director of the EU's anti-fraud unit

commented, "As Reynolds has previously refused any cooperation whatsoever, we

intend to take up this issue with US authorities." Cigarette smuggling is a major

organized crime activity in addition to costing European governments $1.5 billion in

lost taxes in 1997.

New York Times, May 8, 1998, p. A1

tobacco reference guideg (artefact pour saut

A single case in the Hong Kong courts involves $1.2 billion worth of Brown and

Williamson cigarettes that were smuggled into China. When asked whether she

blamed foreign companies for the smuggling problem, Dr. Judith Mackay, executive

director of the Asian Consultancy on Tobacco Control, responded: "It would be

libelous to suggest that the foreign tobacco companies are actually smuggling their

own cigarettes. But it is the case that approximately one third of all cigarettes are

smuggled and unaccounted for in company ledgers..."

Multinational Monitor, July-August 1997, p. 23

tobacco reference guideg (artefact pour saut

Former British-American Tobacco Ltd. executive Jerry Lui Kin-Hong was sentenced

in Hong Kong to three years and eight months in prison for plotting to accept $23

million in bribes and a corrupt $10 million loan from cigarette distributors. The justice

in the case said that major companies were assisting international criminals, and that

the highly lucrative smuggling encouraged crime and undermined efforts to persuade

youngsters in Hong Kong not to smoke by providing them with cheap black market

cigarettes. The justice also said that there is evidence that the companies knew that

vast quantities of the cigarettes were being sold to smugglers.

South China Morning Post, June 25, 1998

tobacco reference guideg (artefact pour saut

tobacco reference guideg (artefact pour

Monday, July 24, 2000 Page 15 of 18

globalink (artefact pour saut de ligne)
First page of this chapter        Previous page of this chapter        Next page of this chapter
Last page of this chapter

Copyright (©) 2000 - David Moyer - published on UICC GLOBALink