Tobacco.org

Cigarette tax likely to stay flat 

House budget writers proposed delaying a potential 25-cent cigarette tax increase yesterday to see if a pending tax increase in neighboring Massachusetts will drive smokers to New Hampshire despite high gas prices.

If New Hampshire doesn't get $50 million from cigarette sales between July 1 and Oct. 1, the state's $1.08 tax will go up a quarter.

The state's grocers and convenience stores had told the House Finance Committee they could sell more packs without a tax increase. Massachusetts is considering raising its $1.51 per pack tax by $1. Massachusetts also has a 5 percent sales tax that New Hampshire retailers say makes New Hampshire prices more attractive.

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Michigan takes another step toward smoking ban 

The State of Michigan has taken one step closer to a statewide smoking ban, reports News 11's Shelley Brown.

The Michigan House passed no-smoking legislation back in December, but the Senate's version calls for more than just bars and restaurants to put out the cigarettes. The State Senate voted 25 to 12 to ban smoking in all bars, restaurants and workplaces.

Since the State of Ohio closed the door on smoking, Michigan businesses like Nick and Jimmy's in Temperance have been reaping the benefits.

"I'd say about 50 percent of our customers come up from Ohio just to smoke here in Michigan, which helps out our business," says Lindsay Miller, who works at Nick and Jimmy's.

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• Cigarette foes to solons: Butt out  

Cut-rate cigarettes could choke the market and expose a whole new generation to the cancer-causing habit under a plan to throw out price controls on butts that has already won state Senate approval, fuming anti-smoking activists warn.

"It's a dramatic and extreme reversal. I see no justification for overturning the law," said Northeastern University's Edward Sweda, a public health attorney.

Kevin O'Flaherty, director of advocacy for the Northeast Region's Campaign for Tobacco Free Kids, agreed, saying, "(The) amendment actually benefits the tobacco companies - not public health."

A 1945 law designed as a perk for Big Tobacco set minimum prices for smokes by the pack and carton depending on brand, and production costs has actually discouraged smoking by keeping consumer costs high, activists say.

But as a pitch to hike tobacco taxes by $1 per pack burns through the Legislature, lawmakers have tacked on the amendment removing the price controls as relief for retailers.

The pricing law now dictates that a pack of Marlboros, for example, cannot be sold in the Bay State for less than $4.97 - or a store owner faces a $500 fine.

If minimum pricing is flicked away, prices could mirror New Hampshire, where the same pack sells for about $3.75, and no rules or fines apply.

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ABDULLAHI: Effective Panacea to Illicit Tobacco Trade (1) 

No single national government or international agency, however sophisticated and powerful it may be, can single-handedly confront the ills of illicit trade. . . .

For example, the Framework Convention Alliance rightly noted that, illicit trade is a major international problem that requires an international solution. And to reduce the consumption of risk prone products like alcohol and tobacco and save lives, combat organised crime as well as recoup billions of dollars in lost government revenue. How can Nigeria participate in the global initiatives to halt the growth and development of illicit trade? . . .

While pointing out that there were about 10,000 wholesale tobacco traders in the world, the convention suggested that these could be built into a licensed system in which they would record movements of tobacco products by scanning pack markings, adding that technology is available to do this at less than USSO.02 per pack. Another transnational initiative is the Framework Convention Alliance (FCA), an international alliance of more than 300 non-governmental organisations. The FCA urges countries to negotiate a strong treaty that can help reduce tobacco use and its health and financial consequences around the world.

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3 arrested in airmail cigarette seizure 

Prohibited parcels: Customs officers have seized 950,0000 illicit cigarettes worth $1.5 million and with a duty potential of $770,000 at the Air Mail Centre.

Customs officers have arrested three people in Hong Kong's largest illicit cigarette seizure so far this year.

In a special operation from April 22 to May 5, officers seized 950,0000 illicit cigarettes worth $1.5 million and with a duty potential of $770,000 at the Air Mail Centre.

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RCMP sounds alarm over surge of illegal smokes 

"I think aboriginal communities do not – do not – want to see organized crime flourish in their communities," said Souccar. A 48-page booklet handed out by the RCMP said "the largest source of illegal tobacco in Canada is manufacturing operations in aboriginal territory based on the U.S. side of Akwesasne and Kahnawake in Quebec, and Tyendinaga and Six Nations in Ontario."

The booklet also says police are increasingly seeing counterfeit cigarettes imported from China.

"The current trend of manufacturing, distributing and selling contraband tobacco products ... involves organized crime networks exploiting aboriginal communities and the politically sensitive relationship between these communities and the different levels of government and enforcement agencies, as well as counterfeit tobacco products arriving in Canada mainly from China."

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• IVISON: Just say no to contraband cigarettes 

Stockwell Day launched a new contraband tobacco control strategy yesterday that could only work in Canada: He appealed to Canadians to please, please drive past smoke shacks selling 200 cigarettes in clear, plastic resealable bags for as little as $6 and instead fork over $75-$90 for legal cartons.

"I'm asking individuals to consider that they are contributing to a dangerous pipeline of criminal activity. This is not a victimless crime or a benign activity," the Public Safety Minister said at a press conference.

Mr. Day's appeal to our better angels probably has more chance of success than the rest of the strategy, which consists of dismantling manufacturing facilities, disrupting supply lines and seizing illicit tobacco.

This is because 90% of the contraband seized thus far in Canada originated from factories on the U. S. side of the Akwesasne reserve, which straddles the American and Canadian sides of the St. Lawrence River, and there are few signs that U. S. authorities are anywhere near as enthusiastic about shutting down businesses on Indian land.

There are said to be 13 factories on the Akwesasne-St. Regis Mohawk reserve, churning out millions of cigarettes, which are then loaded into vans by organized criminal gangs . . .

Mr. Day has raised the issue with Michael Chertoff, U. S. Secretary of Homeland Security, but there seems to be no willingness on his part to expend political capital by cracking down on the problem before the tobacco leaves the factories.

It raises the question about the usefulness of the Security and Prosperity Partnership with the United States and all that bilge about smart borders and foiling transnational crime. . . .

If the roles were reversed, and the Americans were losing billions in foregone tax revenue, they would be demanding that we jump -- and we would be asking politely: "How high?" Is it too much for Ottawa to ask that the United States is as good as its promises?

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Butts stop here 

The Conservative government is declaring war on black-market smokes -- a flourishing industry that fuels organized crime and sucks hundreds of millions of dollars from federal tax coffers.

In a joint news conference with the RCMP, Public Safety Minister Stockwell Day pledged to choke off suppliers, seize more smokes and shut down illegal manufacturers -- many of them on First Nations reserves. A number of new RCMP hires will be dedicated to the crackdown strategy, and a new public awareness campaign will warn against buying bargain-priced smokes.

"You are actually, in effect, supporting a host of criminal activities that literally lead to destructive activities in your own communities. Destruction and even death, depending on the level of criminal activity you are supporting," he said.

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Ottawa wants to butt out illegal tobacco ring 

The federal government says it wants to crack down on contraband tobacco by targeting illegal smoke manufacturers in First Nations communities, in Ontario and Quebec, where a price war has driven the cost of a carton of cigarettes down to $6, one-tenth the normal retail price.

Federal Public Security Minister Stockwell Day vowed to step up efforts to dismantle cigarette manufacturers and distribution networks flourishing in several parts of the country, notably in the Mohawk communities in Quebec of Kanesatake, Kahnawake and Akwesasne (which straddles Quebec and Ontario).

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Targeting smuggling 

The Ministry of Public Safety plans a more aggressive approach to cutting out the illegal tobacco trade through a new RCMP strategy and task force, announced Minister Stockwell Day Wednesday.

Local RCMP Sgt. Michael Harvey said the most important part of the announcement was the attention it would bring the contraband cigarette and tobacco trade from the politicians and the public.

Harvey said the majority of the illegal tobacco smuggled into Canada makes its way through Akwesasne territory.

“It’s more important in Cornwall than in big cities because the smuggling doesn’t affect them as much,” Harvey said. “Our small population sees the effects more. Two-thirds of the organized crime groups in tobacco smuggling also deal in drug trafficking and one-third engage in violent crime.”

RCMP officials hope to eventually stop the trade of illicit tobacco across the country through the Contraband Tobacco Enforcement Strategy and a multi-jurisdictional task force because Day says tobacco smuggling cannot be seen as a victimless, particularly with the escalation of activity since 2001.

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Quebec and NY to exchange border information 

Quebec and New York have intensified their battle against terrorism and crime, agreeing to exchange information about people who cross their borders.

"That information needs to flow continuously," Michael Balboni, New York's deputy secretary for public safety, told reporters today. "That is what we are doing."

Balboni explained that U.S border authorities already have the names and destinations of everyone crossing from Quebec into New York State. But the border authorities do not communicate that information to police forces in the state. . . .

Dupuis said Quebec is concerned about the illegal flow of weapons and contraband tobacco from south of the border.

The Americans are worried about the smuggling of marijuana and other drugs from Canada.

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New federal contraband tobacco enforcement strategy a good start, but more action is needed 

The Canadian Convenience Stores Association (CCSA) reacted positively to the announcement by Public Safety Minister Stockwell Day and the RCMP that the government has adopted a new enforcement strategy to tackle the out-of-control problem of contraband tobacco. However they reminded all levels of government that quick action is needed to reign in a criminal trade that's growing exponentially. "For a lot of our members, particularly small family-run convenience stores contraband tobacco is the number one issue facing them. Many get 50%-60% of their sales from the legal sale of tobacco", said Dave Bryans, President of the CCSA. "But beyond the business impact, the speed at which contraband tobacco is being spread by criminals through communities and showing up in places like schools is alarming and should be a reminder to every politician how serious this threat is to families and communities."

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• 2008 Contraband Tobacco Enforcement Strategy 

Dear Reader,

The contraband tobacco market is complex and continually evolving. The development of an RCMP Contraband Tobacco Enforcement Strategy is the first step in what will be a strategically driven process to tackle the growing illicit contraband tobacco market in Canada.

The RCMP's key concern is the for the increased involvement of organized crime implicated in illegal tobacco activities for monetary gain. The public needs to be aware that profits from illegal tobacco products are also funding other criminal activities, such as drug and gun trafficking. Furthermore, some of these organized crime groups are known to use violence to ensure profit. Be aware that you are funding criminal activity if you are purchasing products that are not sold legitimately. We all have a role to play in combating the contraband tobacco market.

Another disconcerting trend related to the illicit tobacco market is the increasing involvement of youth in contraband tobacco activities for organized crime groups. The lure of easy money and minimal risk is a situation that some can't resist.

It is important that we not only address the supply of, but also, the demand for contraband tobacco. Combating the illegal tobacco market includes targeting those who purchase the illegal products. As such, the overall goal of the Strategy is to nationally reduce the availability of and decrease the demand for contraband tobacco, in turn supporting government health objectives.

Given the broad interest in tobacco-related enforcement, we have spoken with a variety of federal, provincial and Aboriginal partners, non-governmental organizations, academia, industry and key police services. I would like to thank those that participated in the consultation process. While it is always difficult to draw the line at the number of individuals and groups to speak with, the RCMP feels that it has developed its first Contraband Tobacco Enforcement Strategy from a sampling of diverse views across the country.

In closing, the solutions to achieving our goal will not come easily or quickly, but the RCMP is dedicated to ensuring that Canadians continue to enjoy safe and secure communities.

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• 2008-05-07: Minister Day announces an action plan to help stop the trade of illicit tobacco by criminal organizations 

The Honourable Stockwell Day, Minister of Public Safety, today joined RCMP Assistant Commissioner Raf Souccar to announce that the Government of Canada is taking action to stop the trade of illicit tobacco in Canada by criminal organizations, by launching the RCMP Contraband Tobacco Enforcement Strategy, as well, a new government task force .

The new strategy will help law enforcement to reduce the availability and demand for contraband tobacco by:

* Dismantling manufacturing facilities;

* Disrupting distribution supply lines; and

* Seizing illicit tobacco and the related proceeds generated by organized crime.

In addition, the government will continue to work closely with those Canadians who have been deeply affected by this illicit trade of tobacco, including tobacco growers and their communities.

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Smokin' crackdown 

The Conservative government is declaring war on black-market smokes -- a flourishing industry that fuels organized crime and sucks hundreds of millions of dollars from federal tax coffers.

In a joint news conference with the RCMP, Public Safety Minister Stockwell Day pledged to choke off suppliers, seize more smokes and shut down illegal manufacturers -- many of them on First Nations reserves. A number of RCMP hires will be dedicated to the crackdown strategy, and a new public awareness campaign will warn against buying bargain-priced smokes.

"You are actually in effect supporting a host of criminal activities that literally lead to destructive activities in your own communities -- destruction and even death depending on the level of criminal activity you are supporting," Day said.

Last year, 618,000 cartons of contraband smokes and 28,000 kilograms of loose tobacco were seized -- a 35 per cent rise in the last decade.

Most of the illicit weed is made on New York side of the Akwesasne reserve and smuggled into Canada.

Others illegal cigarettes are produced in Canada, including many on native reserves.

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