$1.1M Canadian Contraband Cigarette Seizure Sets a Record

Source from:  tr.itsmyiq.com Feb 21, 2008 02/25/2008

The Ottawa Citizen reported recently that Canadian authorities set a record with a $1.1-million contraband cigarette seizure on Highway 401 when they stopped a westbound transport truck with unregistered Ontario plates that was carrying 9.2 million cigarettes to an unknown destination. The multi-agency operation, involving the Kingston RCMP, the Canada Border Services Agency and Prescott OPP, was the result of a ''short'' investigation that began in the Cornwall Island area, which authorities believe to be the nexus of a blossoming cigarette trade that has deep roots in the Akwesasne Mohawk reserve. According to RCMP data, about 90 per cent of all cigarette seizures in Canada originate from the U.S. side of the Akwesasne reserve, which straddles the U.S. border. RCMP Cpl. Nancy Mason said the haul of 925 cases of cigarettes was the largest on a Canadian roadway, adding that there have been some larger rail car and harbour seizures. ''What makes it not so common was that it was a tractor trailer load,'' Cpl. Mason said. An unnamed 47-year-old man from the Cornwall area was arrested after the truck was stopped on Hwy. 401 near the Hwy. 416 junction. He was released and is expected to appear in Brockville provincial court at a later date. The growing size and value of the black market cigarette trade has prompted calls by Canadian MPs for tighter oversight by the federal government of cigarette manufacturers on the Canadian side. It has also triggered some finger-pointing between Canada and the U.S. American authorities say Canadian tobacco is beginning to supply illegal operations on the U.S. side, a claim the RCMP denies. U.S. Ambassador David Wilkins made a point of highlighting the Canadian supply in a May 25 online discussion hosted by his government. ''The (Bureau of Alcohol, Tobacco, Firearms and Explosives) is actively involved in seizing tobacco and manufacturing products destined for unlicensed manufacturers on the reservation. Recent information, however, points toward tobacco and materials now being supplied to the reservation from Canadian locations,'' said Mr. Wilkins, answering a question about cigarette smuggling. A spokeswoman for the U.S. Embassy said Mr. Wilkins' information was still ''current,'' but would not provide additional details. New York field division spokesman Joseph Green said the ATF is ''monitoring'' evidence of Canadian tobacco and materials like cardboard packaging and machinery making its way to the U.S., ''but it is a small amount.'' The RCMP also disputes that claim. ''To the best of our knowledge, we have no indication of that,'' said RCMP Sgt. Sylvie Tremblay. Canadian authorities believe North and South Carolina supplies a large portion of tobacco for the illicit trade through black-market deals between farmers and manufacturers. Mr. Green said the underground cigarette trade is so lucrative in the U.S. that organized crime gangs are switching to running smokes instead of drugs, which carries far stiffer penalties. B.C. Liberal MP Keith Martin, a medical doctor, has led calls for the federal government to crack down on illegal cigarettes and introduced a motion in Parliament in December calling for the use of a package-marking system, known as ''tracking and tracing,'' to monitor tobacco shipments and to revoke the licenses of manufacturers breaking the law. Enditem