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Tag: illicit

  • Indonesia: Two Arrested for Making Narcotic-Laced Vapes in Apartment

    Indonesia: Two Arrested for Making Narcotic-Laced Vapes in Apartment

    Two people were arrested in North Sumatra, Indonesia, for allegedly operating an illegal drug lab that produced vape liquids infused with narcotics. Acting on a public tip, police raided an apartment and uncovered a makeshift factory that was producing up to 300 narcotic-laced vape cartridges per day, each selling for Rp 5 million ($305).

    North Sumatra Police Narcotics Division Chief Sr. Comr. Jean Calvijn Simanjuntak said police seized 2,965 cartridges, along with raw materials, solvents, flavoring agents, and sweeteners used in production.

    Both suspects were reportedly repeat drug offenders and are believed to have been running the illegal lab for at least six months.

  • Drug Gangs Hijacking Vape for Narcotics

    Drug Gangs Hijacking Vape for Narcotics

    Public safety must focus on syndicates, not legal retailers

    Former Sarawak State Police Chief Datuk Dr Yusoff Nook called for a sharper distinction between drug crimes and the legitimate vape industry, following reports that investigated the widespread online sales of synthetic drug-laced vape products in Malaysia.

    In the investigation, it was found that illicit vape liquids laced with dangerous substances like methamphetamine, syabu, and ketamine were being sold openly on social media and e-commerce platforms outside any regulatory reach and entirely separate from licensed retailers. These products are disguised as flavored vape, often in colorful packaging that appeals to younger consumers, and are traded via anonymous sellers through private messaging and courier services.

    “These are not rogue retailers or irresponsible shop owners,” Nook said. “These are organized drug traffickers—sophisticated, transnational, and criminal in nature. They are merely using vape as a new delivery mechanism. But the issue is not with vape, the issue is drugs. At its core, this remains a drug crime, and it must be treated as such.

    “The recent calls for state-level vape bans are misdirected, as they do not address the real source of harm. The investigation makes it clear: these products are not sold by licensed players. They’re sold online by criminals operating in the shadows. A state ban on vape shops won’t stop this. If anything, it punishes the visible and regulated segment of the market while doing nothing to touch the underground networks.”

    Nook said that the legitimate vape industry is now governed under the Control of Smoking Products for Public Health Act 2024 (Act 852), which imposes strict requirements, including product registration, price approvals, and retail licensing.

    “Licensed players are complying,” he said. “They are subject to inspections and oversight. The ones flooding our streets and social media with narcotic vape? They are not part of that system. They are traffickers. Let’s stop conflating legal vaping with narcotics. This is a criminal abuse of a product, not a failure of regulation or industry.”

    Nook urged authorities to act with precision, using tools like the Dangerous Drugs Act 1952, Anti-Money Laundering Act 2001, stronger criminal enforcement, targeted raids, and cross-border intelligence sharing to take down these syndicates.

    “This is a matter of national security,” Nook said. “Drugs are illegal. Drug trafficking is a serious crime in Malaysia. We must continue to treat it as such. We should be using every legal weapon available to take down drug networks, not redirecting blame onto products that criminals happen to exploit.

    “The real danger is losing focus. If we spend time penalizing the legal market, we risk giving the illegal market room to grow. The vape industry is not the threat. Drug syndicates are. Enforcement, not prohibition, is the only real answer to this threat.”

  • Philip Morris Supports India’s Crackdown on Illicits

    Philip Morris Supports India’s Crackdown on Illicits

    On World Anti-Counterfeiting Day, Philip Morris International’s (PMI) India affiliate, IPM India, reinforced its commitment to combat illicit tobacco trade, protect government revenue, and uphold product integrity. The pledge aligns with India’s rollout of pack-level track and trace (T&T) technology, aimed at identifying and curbing counterfeit tobacco products.

    India, the fourth-largest illegal cigarette market globally, sees smuggled cigarettes make up 25% of its domestic market, according to PMI estimates. The company emphasized the critical need for stronger enforcement and collaboration to address the issue, which undermines public health, economic stability, and national security.

    Navaneel Kar, managing director of IPM India, praised the government’s T&T initiative, stating it will enhance transparency and enforcement. PMI says it has implemented T&T systems in over 140 countries, including the EU and GCC states, with positive outcomes in reducing illicit trade.

    Rodney Van Dooren, PMI’s Head of Illicit Trade Prevention for Asia Pacific, called for regional cooperation, noting India’s leadership role and growing influence in tackling counterfeit goods.

  • Thai Police Raid Illicit Vape Facility

    Thai Police Raid Illicit Vape Facility

    Thai police raided a large-scale illegal e-cigarette manufacturing facility this past weekend in the Khu Khot subdistrict, seizing more than 21,000 e-cigarette devices and arresting 29 suspects. Officers stormed a three-story commercial building in Lam Luk Ka district, Pathum Thani Province, which had been transformed into a covert production hub. Behind the main office and worker accommodation, police discovered a sprawling three to four rai (4,800 to 6,400 square meters) factory producing disposable and refillable e-cigarettes.

    Police confiscated 6.1 million baht ($189,000) of illegal products, along with assembly tools, sealing machines, and e-liquid filling equipment. Authorities said the factory began illegal production in early 2025, and had recently begun transitioning from disposable to refillable models, and was in the process of installing a conveyor-belt system to boost output.

  • South Australia Shuts Down 5 Stores Under New Tobacco Laws

    South Australia Shuts Down 5 Stores Under New Tobacco Laws

    Five CBD stores have been shut down for selling illicit tobacco and vapes under South Australia’s tough new laws. Four stores received 28-day closure orders, and one was closed for 3 days after raids by the Consumer and Business Services task force. Officials had given stores a grace period but warned that there would be zero tolerance once the laws went into effect on June 5.

    The new laws allow for up to 12-month closures and fines ranging from A$700,000 ($455,000) for an individual to A$6.6 million ($4.3 million) for a “large commercial” business. Landlords may also face penalties if they allow illegal sales on their premises.

    Since July 1, authorities have seized A$34 million ($22.1 million) in illegal products during over 500 inspections.

  • Malaysia Losing $1.2B to Illicit Cigarettes

    Malaysia Losing $1.2B to Illicit Cigarettes

    Malaysia continues to suffer major revenue losses from the illicit cigarette trade, with an estimated RM5 billion ($1.2 billion) in tax revenue lost each year, according to the latest NielsenIQ Illicit Cigarettes Study released in March.

    After peaking at 63.8% in 2020, illicit cigarette consumption continued its slow decline down to 54.6%, according to the report, with 10 dominant contraband brands accounting for 75% of cigarettes smuggled. The study also raised alarm over rampant tax stamp fraud, noting that 31% of illegal cigarette packs bore counterfeit stamps.

    “Organized smuggling syndicates are growing increasingly sophisticated, posing a serious challenge to enforcement and public health policy,” the report stated. Hotspot states such as Johor, Selangor, and Sabah were identified as major entry and distribution points for illicit tobacco products.

  • Belgium Losing €544M from Illegal and Foreign Cigarettes

    Belgium Losing €544M from Illegal and Foreign Cigarettes

    Legal cigarette sales in Belgium continued to fall in 2024, while the volume of counterfeit and smuggled products increased significantly, according to the 19th annual report by consultancy firm KPMG, commissioned by Philip Morris International.

    Nearly 2.4 billion cigarettes consumed in Belgium last year came from non-domestic sources, a 17% increase compared to the previous year, meaning nearly one in three cigarettes smoked in the country were not purchased through Belgian sales channels. While domestically-produced sales declined, 1.1 billion cigarettes in Belgium were legally purchased abroad last year, an increase of 22%. The volume of counterfeit and smuggled cigarettes in the country also grew, by 13%, to 1.3 billion.

    Imports from Bulgaria tripled since 2020 to 770 million cigarettes last year, as did those from Luxembourg at 740 million in 2024. According to KPMG, the shift to illegal or foreign products is estimated to have cost the Belgian government around €544 million in lost tax revenue last year.

  • EU Sees Highest Rate of Illicit Cigarettes Since 2015

    EU Sees Highest Rate of Illicit Cigarettes Since 2015

    According to the 2024 KPMG study, produced annually and commissioned by Philip Morris Products SA, smokers in the European Union consumed 38.9 billion illicit cigarettes in 2024, a 10.8% increase versus 2023, the highest level since 2015. That number accounts for 9.2% of total cigarette consumption, with governments losing as much as €14.9 billion in tax revenues at a time when many countries face intense economic pressures and rising black markets.

    PMI called for effective policymaking to counter the growing threat of illicit trade, and said it believes that steep and abrupt tax increases are exacerbating the issue and benefitting criminals who supply unregulated, untaxed, and inferior products. To combat this growing threat, PMI urges the adoption of evidence-based regulation with balanced and predictable taxation through tax calendars, continued public-private collaboration, and enhanced support of regional and national law enforcement agencies.

    “The illicit tobacco trade threatens the European economy, public health, security, and social stability; today, higher-taxed and higher-priced markets such as France and the Netherlands are especially impacted by illegally imported and counterfeit goods,” said Christos Harpantidis, PMI’s Senior Vice President, External Affairs. “Its massive socioeconomic impact negatively affects tax collection, job creation, and legitimate businesses, the engine of our European economies. The availability of cheap, unregulated cigarettes in the underground economy also impairs efforts to reduce smoking rates and achieve a smoke-free future.”

    France has the largest illicit market in Europe, reaching 18.7 billion illicit cigarettes consumed last year, 37.6% of total consumption. The Netherlands saw the largest increase in illicit cigarettes, which doubled to 17.9% of total consumption.

    A detailed overview of the results, country profiles, and methodology of the KPMG study is available here.

  • Report: Black Marketeers Continue to Evolve with Technology

    Report: Black Marketeers Continue to Evolve with Technology

    Tobacco smugglers and black marketeers are increasingly using technologies such as social media and drones to deliver cigarettes to smokers in Europe and avoid law enforcers, a report found.

    According to the 2024 KPMG study, produced annually and commissioned by Philip Morris Products SA, the illegal networks’ flexible strategies have helped illicit consumption increase 10.8% in the EU from 2023, with criminal groups shifting toward smuggling smaller packages, more often, via budget airlines, railways, and drones. They are also increasingly bypassing physical stores to sell directly to consumers on social media.

    The report showed that criminal groups are holding less inventory, which is reflected in a decrease in the size of illicit cigarette seizures as the gangs mitigate their risks and reduce the impact of raids by law enforcers. The more recent change in tactics follows another shift from 2020, when the groups moved production closer to end-markets, partly in response to the pandemic disruption, and also reducing the chance of detection.

  • Australia’s Anti-Smoking Push Fuels Crime, Fails to Curb Smoking 

    Australia’s Anti-Smoking Push Fuels Crime, Fails to Curb Smoking 

    The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) condemned Australia’s tobacco control strategy as a “public health failure” that prioritizes ideology over evidence, fueling a A$6.3 billion ($4.1 billion)  illicit tobacco market while adult smoking rates remain stagnant. New data reveals one in four cigarettes consumed in Australia originates from the black market — CAPHRA says that is a direct consequence of the world’s highest tobacco taxes and restrictive vaping policies.  

    CAPHRA argues this crisis exposes a fatal flaw in Australia’s approach: prohibition without offering safer alternatives drives consumers to criminal networks rather than reducing harm. 

    “Australia’s tobacco policy doesn’t pass the pub test,” said Nancy Loucas, CAPHRA’s executive coordinator. “Sky-high cigarette prices haven’t made people quit—they’ve made criminals rich.

    “The government’s own figures show smoking rates flatlined at 11% since 2019 despite taxing a pack to A$50 ($32.50). Meanwhile, organized crime syndicates pocket A$2.3 billion ($1.5 billion) annually in evaded excise, funding drug trafficking and violent turf wars.” 

    CAPHRA’s data said Australia’s illicit tobacco trade has surged by 46% since 2020, with over 800,000 smuggled cigarettes intercepted monthly at airports. Criminal syndicates increasingly exploit international travelers, while fire bombings of non-compliant retailers exceed 220 incidents since 2023. 

    “This isn’t just about lost tax revenue—it’s about community safety,” Loucas said. “Melbourne’s ‘tobacco war’ has seen shops torched and innocent bystanders endangered. The government transformed a health issue into a national security crisis by ignoring basic economics: punitive taxes without alternatives breed black markets.”