South Africa: Illicit Trade of Cigarettes Declines

Source from:  SAnews.gov.za(Tshwane) 11/11/2015

Police say the illicit trade of cigarettes is starting to stabilise and decline.

During 2013/14 and 2014/15 period, illicit trade in cigarettes dropped from 31% to 23% respectively.

Deputy Minister of Police Maggie Sotyu attributed the decline to increased law enforcement actions and enhanced administrative controls in South Africa and other member-states of Southern African Regional Police Chiefs Cooperation (SARPCCO).

"This reduction is not a coincidence. It is precisely because the regional law enforcement agencies, in the form of the SARPCCO, have put a lot of effort and zeal to address this problem," Deputy Minister Sotyu said.

She was speaking at the Tobacco Institute of Southern Africa (TISA) annual anti-illicit trade conference.

The conference is attended by various enforcement agencies, revenue services and customs agencies from 18 countries from across the globe.

According to global estimates of illicit trade markets, South Africa currently ranks among the top five countries in the world with the highest incidence of trade in illicit cigarettes. Other countries with such high incidence are Malaysia, Iraq, Brazil and Pakistan.

South Africa is said to be a manufacturing hub, point of distribution and nexus point for smuggling into and from neighbouring countries.

Deputy Minister Sotyu said if this trend is not tackled decisively, South Africa will continue to see an increase in organised crime as most illicit goods are not declared to SARS, resulting in money laundering and funding criminal groupings across the globe.

She said the financial impact of the illicit trade in cigarettes erodes legitimate job creation and economic development and undermines tobacco regulations.

The health impact is also another danger as many of the current illicit cigarette packs lack the appropriate health warnings and exceed maximum tar and nicotine levels and non-compliance with Reduced Ignition Propensity Regulations.

To ensure that the trend continues to decline, Deputy Minister Sotyu said government will use its membership as Interpol's Global Executive Committee member -- the only African country to hold such a position -- to promote the interests of the African continent in the global fight against international organised crime.

"Tackling the illicit cigarette trade in the region will form part of this commitment. We regard it as the ideal opportunity for South African Law Enforcement Agencies to input the regional challenges of cross-border smuggling of tobacco products," the Deputy Minister said. Enditem