The illegal transport, distribution, or sale of tobacco products across a jurisdictional or international border, or their sale without payment of the applicable tobacco excise tax, undertaken primarily to evade the substantial tax typically levied on legal cigarette sales, creating a documented price gap that sustains a large illicit market. The World Health Organization and law enforcement bodies including Europol have documented cigarette smuggling as one of the largest illicit trade categories worldwide by volume, frequently linked to organized crime groups that use the same routes and networks for other forms of contraband, and to counterfeit cigarette production, in which cigarettes are manufactured without any tax payment or brand authorization at all rather than merely diverted from a legitimate taxed supply chain.
Facts
Typical PenaltyUnited States: felony punishable by up to five years in prison under the Contraband Cigarette Trafficking Act of 1978 1 Notable ExampleIreland seizure of 9 million cigarettes shipped from Malaysia to Dublin Port 1 Jurisdiction VariationMalaysia: first offence up to RM100,000 fine and 3 years; repeat offence RM200,000 fine and 6 years 1 Classification
Offense GradeMinor or Summary Offense 1 Connections
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Sources
1. Illicit cigarette trade (Wikipedia)
Penalties, United States
The Contraband Cigarette Trafficking Act of 1978, which makes cigarette smuggling a felony punishable by up to five years in prison.
Penalties, Malaysia
first time offence results in up to RM100,000 fine and a 3-year sentence; with a RM200,000 fine and 6-year jail sentence for subsequent offences.
Notable seizures, Ireland
9 million cigarettes with an estimated retail value of 4.3 million euros were seized when 4 men were caught transporting the shipment, which arrived at Dublin Port, from Malaysia.
View the SourceLegal Information Institute, Cornell Law School: 18 U.S. Code § 2342 - Unlawful acts
Legal Information Institute, Cornell Law SchoolIn Group: Receiving Stolen Goods, Fencing and Smuggling, Statute textQuote, In Group: Receiving Stolen Goods, Fencing and Smuggling, Statute text
It shall be unlawful for any person knowingly to ship, transport, receive, possess, sell, distribute, or purchase contraband cigarettes or contraband smokeless tobacco .
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