In 2022, more than 110 million contraband cigarettes were seized at Romania’s borders as a result of a significant effort by the authorities to stop illegal activities at the country’s borders. According to centralized data, the black market value of contraband cigarettes seized by the Romanian authorities in 2022 is more than 73 million lei. www.stopcontrabanda.rothe only real-time centralizer of the seizure of contraband cigarettes on the territory of Romania.

• In 2022, the authorities confiscated about 110 million contraband cigarettes in Romania. Their total value on the black market is more than 73 million lei.
• Almost half (44%) of the total contraband catch in 2022 was recorded at the southern borders of the country, in the counties of Konstanz, Giurgiu and Vilca.
• Cigarette counterfeiting is becoming an alarming phenomenon in Romania: 5 illegal factories were discovered in Romania; more than 21.8% of cigarettes found among consumers are counterfeit*; more than 40% of seized cigarettes are counterfeit*
• New methods of smuggling cigarettes into Romania: cigarettes hidden in car fuel tanks, use of false diplomatic status and illegal air traffic
• The purpose of BAT, the initiator of the “Stop Smuggling” platform, is to build a better future (A Better Tomorrow™), including through continuous information campaigns and constant support of anti-trafficking activities.

According to the latest study by Novel Research, in 2022 the average annual volume of illegal cigarette trade was 7.1%, compared to 8.7% in 2021, this the lowest in the last 15 years, which implicitly means an increase in revenues to the state budget. By comparison, the maximum level of the black market for cigarettes recorded in Romania in 2010 was 27% of total consumption. In addition, the average annual volume of cigarette smuggling in Romania is 10% lower than the European average.

“The continuous reduction of the black market, which is registered year after year, is a pleasant effect of the strengthening of the borders and the effective partnership with the Romanian authorities in the fight against the illegal circulation of cigarettes. The decrease in illicit traffic is directly related to the increase in the contribution of the tobacco industry to the state budget, BAT Romania is the largest payer of funds to the state budget in the last two years. We remain a committed partner in supporting the authorities’ efforts to combat illicit trafficking through the information platform Stop Contrabanda and through awareness projects and donations of equipment needed to achieve these goals.” mentioned Ileana Dumitru, director of legal affairs and public relations of the Central and Southern Europe region of BAT.

Almost half of the total catch is on the southern borders of the country

In 2022, the largest volume of confiscated contraband cigarettes was recorded in the counties of Konstanz (over 15.6 million cigarettes), Giurgiu (over 13.7 million cigarettes) and Vilca (almost 11.2 million cigarettes). the total volume registered last year on the territory of Romania, according to centralized data

StopContrabanda.ro. Illicit trafficking also remained at a high level in the northern borders of the country, where about 42% of the seizures occurred in this area (38.5 million cigarettes).

Smuggling networks diversify their methods.

In 2022, the authorities discovered new ways of illegally importing counterfeit cigarettes into the country: last December, a person tried to import more than 8,000 packs of contraband cigarettes into Romania using a false diplomatic status. Significant quantities of contraband cigarettes were found in the fuel tank, fenders or floor of several cars that attempted to cross the border illegally.

In 2022, illicit traffic also spread on air routes. Significant seizures were recorded at airports, and during the year the authorities detained several people trying to cross the border with significant quantities of cigarettes.

Also, according to authorities, a significant amount of raw tobacco was seized in 2022, with the largest amount of tobacco seized by ANAF in May: 10,260 kg of raw tobacco imported from Indonesia. Last year, more than 50 tons of tobacco (gross, for hookah or tobacco found in illegal factories) were detected and confiscated. This is almost twice as much compared to 2021, when about 30 tons of tobacco were seized.

Cigarette counterfeiting is becoming an alarming phenomenon

Over 21.8% of cigarettes found in consumers’ possession during market research interviews** were counterfeit, the highest level of counterfeit cigarettes on the illegal market in 10 years.

Of the total seized by the authorities in 2022, more than 40% were identified as counterfeit, with the largest seizures of such products being made in Konstanz, Vilca and Giurgiu.

At the same time, the number of illegal cigarette factories detected and destroyed by the authorities in 2022 increased to 5 compared to 2 detected in 2021, this is also an indicator of the diversification of methods of smuggling networks.

Data on the development of cigarette seizures in Romania can be viewed in real time on the www.stopcontrabanda.ro platform, a BAT initiative aimed at supporting the efforts of the authorities by centralizing seizures throughout the country, as well as by informing consumers about the effects of cigarette smuggling on society. The campaign is carried out in partnership with the Romanian Police, the Romanian Border Police, the National Agency for Tax Administration (ANAF) and the Romanian Customs Service. The Stop Smuggling campaign was launched by BAT in 2017 to create a one-stop shop for information on cigarette smuggling.

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*According to the results of laboratory studies conducted by the industry

**Novel Research 2022 market research

About cigarette smuggling in Romania

• Romania has the highest level of cigarette smuggling in Eastern Europe.
• Romania has a 2,000 km border with non-EU countries where tobacco prices can be three times lower.
• Illegal cigarette trafficking costs the Romanian state approximately 2 billion lei annually, which is equivalent to 667 km of modernized national roads [1].
• Each container of illegal cigarettes means a million euros in profit for smuggling networks. Interpol data shows that the illicit traffic in cigarettes is a catalyst for drugs, weapons, people and even terrorist activities.
• In 2021, the majority of registered seizures worldwide were cigarettes – 50.5% [2].

About BAT in Romania

• In 2021, BAT became the largest payer of funds to the state budget, for the second year in a row. Against the backdrop of a decrease in cigarette smuggling, BAT had a total contribution to the state budget of around 11 billion lei (€2.2 billion) in taxes and excises in 2021, which is 10% more than in 2021. 2020 is the year.
• BAT is the leader of the Romanian tobacco market with a share of more than 50%
• BAT employs more than 3,000 people and creates a further 30,000 jobs in the distribution and supply chain
• In December 2017, BAT launched the glo device in Romania, the company’s most innovative product, which heats rather than burns tobacco.

About BAT worldwide

BAT is a leading multi-category consumer products company committed to building a better future (A Better Tomorrow™) by reducing health impacts, with a commitment to providing adult consumers with a wide range of low-risk products*.

The company continues to explain that cigarettes are a serious health hazard and that the only way to avoid them is to quit smoking. BAT encourages those who continue to smoke to switch completely to scientifically proven, lower-risk alternatives*. To achieve this, BAT is transforming itself into a truly consumer-centric multi-category FMCG business.

BAT’s aim is for 50 million consumers to choose tobacco-free products by 2030, and to generate £5bn of revenue from new categories by 2025. BAT has set a number of ambitious sustainability targets, such as a 50% reduction in carbon emissions for Goals 1, 2 and 3 by 2030 compared to a 2020 baseline; by 2025, make all packaging from reusable, recycled or compostable plastic.

BAT has more than 52,000 employees and operates in more than 175 countries. BAT Group’s revenue for the first half of 2022 was £12.87bn, with an operating profit of £3.68bn.

The company’s strategic portfolio includes its global cigarette brands and the category of reduced-risk tobacco and nicotine products*, as well as traditional smokeless tobacco products. These include e-cigarettes, tobacco heating products, modern oral products, including tobacco-free nicotine oral products, and traditional oral products such as snus and moist snuff. In the first half of 2022, 20.4 million consumers chose BAT products that do not involve burning tobacco, an increase of 2.1 million from the previous year.

* Based on existing data and assuming full transition from smoking to these products, which are not without risk and addiction.

Footnotes:

[1] at an average cost of 3 million lei for one km of modernized national road (according to the latest projects announced by CNAIR).

[2] According to the 2021 Illicit Trafficking in Goods Report developed by the World Customs Organization. In 2021, 77 countries reported 29,219 seizures of tobacco and alcohol products in the CEN database, while in 2020, 99 countries reported 17,419 seizures. A reported case may involve multiple seizures, for example, a case involving different assets will be documented using separate seizures (https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/enforcement- and – compliance/activities-and-programmes/illicit-trade-report/itr_2021_en.pdf?db=web)

Article based on BAT