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Illicit cigarette trade
Trade in tobacco goods which fail to comply with legislation / From Wikipedia, the free encyclopedia
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The illicit cigarette trade is defined as "the production, import, export, purchase, sale, or possession of tobacco goods which fail to comply with legislation" (FATF 2012).[1] Illicit cigarette trade activities fall under 3 categories:
- Contraband: cigarettes smuggled from abroad without domestic duty paid;
- Counterfeit: cigarettes manufactured without authorization of the rightful owners, with intent to deceive consumers and to avoid paying duty;
- Illicit whites: brands manufactured legitimately in one country, but smuggled and sold in another without duties being paid.
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Cigarette smuggling, also informally referred to as "buttlegging", is the illicit transportation of cigarettes or cigars from an administrative division with low taxation to a division with high taxation for sale and consumption. The practice, commonly used by the tobacco industry,[2][3] organized crime syndicates and rebel groups, is a form of tax evasion.[4] Interstate 95, a highway traversing the East Coast of the United States, came to be known informally as "New Tobacco Road"[citation needed] when it became a favorite cigarette-smuggling route. Illicit cigarette trade is usually a crime.