Fake Cigarettes Cause OMR3.5m Loss to Oman

Source from:  Times of Oman 10/22/2014

Smuggling of counterfeit cigarettes leads to a revenue loss of nearly OMR3.5 million to the country and they constitute 21 per cent of illegal products being brought into the Omani market by smugglers.

Further, the majority of consumers who buy smuggled goods are between the age group of 18 and 45, according to a study conducted by the Euromonitor Research Associate.

The study revealed that illegally smuggled goods are in high demand among low-income expatriates due to their crave for less expensive products.

The study pointed out that smuggled cigarettes constitute 30 per cent of the total tobacco products in the Sultanate. 

In spite of the decline in the prices of tobacco products in the black market, smugglers' profits reaches up to 200 per cent. Taxes and high prices are the most important factors contributing to the high rate of trafficking, as indicated by the Euromonitor Research.

Additionally, raising the customs duties on cigarettes may lead to an increase in the illicit trade due to the inability of consumers to buy cigarettes which are bought in the country after the payment of necessary duties, according to the study.

Meanwhile, an official at the Royal Oman Police, told Times of Oman that the ROP works hard to combat smuggling at borders and customs posts, which are primarily used by tobacco smugglers.

"The General Administration of Customs of the ROP pursues smugglers through a computerised  and accurate system. It carries out investigation and risk assessment leading to clamping down on these smugglers and thwarting their plans to smuggle prohibited goods and contraband into the Sultanate", says the official. 

The official reiterated that many smugglers use different methods to cross borders and illegal goods are often hidden in trucks travelling between Oman and other GCC countries.

Some criminals use the mountain and sea routes to smuggle goods into the country and the ROP has foiled many such attempts in the past.  An official said that there are plans to increase penalties for smuggling. Enditem