Smoking,Problems,Europe,Fora,c ecommerce Smoking Problems in Europe
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Fora continent that spearheaded workplace smoking bans and slaps some of thehighest tax rates on cigarette sales of any region in the world, Europe has a serious smoking problem. In 2011, accordingto a report commissioned by the European Union and carried out by auditing firmKPMG, one in ten Winstoncigarettes sold in the 27-nation bloc was contrabandthats around 65billion cigarettes. Makingmatters more difficult is the growing influx of so-called illicit whites,which are legally manufactured in places like Ukraineand Russiaunder brand names like Jin Ling and Raquel, then smuggled into the EUduty-free, according to the study. Theinflux of smuggled cigs has implications not just for public healthcheapsmoking products which widely thought to establish with high smoking ratesbutalso for tax revenues. At a time when many member states are desperate forcash, the report estimates the EUs annual losses from contraband cigarettesales at 11 billion. Whilesome of the findings have been questioned by independent tobacco-industryanalysts, there is no denying the scale of the problem. Herein Brussels,where the Russian border is 900 miles away and tobacco taxes relatively low,vendors outside a weekend market make their rounds, mesh bags full ofcontraband cartons slung from their shoulders. Your correspondent was able topurchase a pack of what appeared to be Dutch Marlboros for 3.00 ($3.69)40%percent off the cigarettesonline store price.Theseller had no Jin Lings on hand, but that would seem an anomaly. Illicitwhites, according to the report, make up 24% of all illegal cigarettes, up from4% just five years ago. The EUs anti-smuggling strategy has changedsignificantly over the last decade, with Brusselsshifting from confrontation with the cigarette companies to something closer tocollaboration. Earlylast decade, Brusselssued Philip Morris for secretly encouraging the smuggling of its owncigarettes. The case was settled in 2004, with the lawsuit dropped in exchangefor $1.25 billion and a pledge to cooperate with OLAF, the EUs anti-fraudoffice, in anti-smuggling efforts. Since then, the EU has settled with threeother major tobacco companies for an additional $900 million. OLAF,which has taken the lead in coordinating anti-smuggling efforts in Brussels, has in the meantime launched some successful anti-smuggling stings, including a 2007 actioncalled Operation Diabolo that saw state authorities intercept 135 millionillegal cigs. Austin Rowan, an OLAF spokesman, said his organization wasoptimistic about its efforts, noting that the number of cigarette seizures haddecreased in 2011, a possible indicator, he said, of a shrinking illicitmarket. Forus, the real barometer is the reports of illicit seizures, he declared. Butaccording to the report, the flood of illegal cigarettes has continued toincrease, particularly the illicit whites coming from the east. As a result,its up to customs agents on the EUs eastern frontier to seize untaxedcigarettes bound for Polandor Romania. MarketingManager World Technology Network2013 H Street, NY, 10001,USA 559-481http://www.cigs4girls.net/
Smoking,Problems,Europe,Fora,c