Over 150 million contraband cigarettes seized by authorities last year, up by 40% vs the previous year

In 2023, on grounds of extensive efforts to stop illicit trade, more than 150 million smuggled cigarettes were seized on Romania`s territory, with a black market value of almost 110 million lei (22 million euros).  Last year’s volume of seizures is up by almost 40% as compared to 2022 and this is the highest level of illicit cigarettes seizures in the last 5 years, according to the data on www.stopcontrabanda.ro, the single real – time aggregator of the contraband cigarettes seizures on the Romanian territory.

By comparison, in 2022 authorities seized more than 110 million smuggled cigarettes and 5 years ago, in 2018, the annual seizures volume amounted to 112 million cigarettes.

According to the latest Novel Research data, in 2023 the average annual smuggling rate in Romania increased by more than one percentage point to 8.2%. This is after the average annual smuggling level had dropped significantly to 7.1% in 2022, which is also the lowest level recorded in the last 15 years, meaning higher revenues for the state budget.

In 2023, the annual average of cigarette smuggling in Romania is in line with the European average of 8.2%, according to the KPMG 2022 study. Last year there were 2 successive revisions of the excise duty on tobacco and nicotine products, with excise duties and cigarette prices in Romania being the highest in the EU relative to the purchasing power. In Romania’s neighbouring countries, cigarettes have about half the price, making smuggling very profitable for the criminal networks. Romania also has 2,000 km of border with non-EU countries, where tobacco prices can be up to three times lower.

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“The upward trend in tobacco smuggling, as well as the significant prevalence of counterfeit products indicates major risks that threaten the safety of communities and the economic development, as well as state budget revenues. On the other hand, the significant level of illicit cigarettes seizures in 2023 is another indication that the illicit market pressure is increasing and the fight against illicit trafficking needs to remain a priority. We are convinced that the Ministry of Finance’s project to equip customs offices with 26 new scanning systems in the coming period and the sustained efforts of law enforcement authorities will contribute significantly to strengthening the efforts to combat illicit trafficking. Of course, these efforts must be supported by balanced and predictable fiscal measure that support a legitimate and sustainable business environment and the trade of legal, regulated and fairly taxed products.

With over 25 years of BAT presence in Romania, we are happy to be part of this common effort. BAT Romania remains one of the country’s major contributors, with around 10.5 billion lei paid to the state budget in 2022 and a trusted partner of the authorities in supporting anti-smuggling efforts through information and awareness projects, as well as through donations of equipment needed at the country’s borders, as part of the Stop Contrabanda campaign,” said Ileana Dumitru, Corporate & Regulatory AffairsDirector for South Eastern Europe Area at BAT.

3 counties registered more than half of the total annual seizures in 2023

In 2023, more than 55% of the total smuggling seizures were recorded at the Western, South-Eastern and North-Eastern borders of the country, in the counties of Arad (the largest volume of cigarettes destined for the black market, more than 36 million cigarettes), Constanta (more than 28 million cigarettes) and Suceava (more than 21 million cigarettes), according to data centralized on StopContrabanda.ro.

The black market value of the seizures recorded last year in these 3 counties alone amounts to over 52 million lei.

Counterfeiting on the rise. Significant seizures of raw and loose tobacco

Illegal trade of counterfeit goods is also raising alarm signals: in the first 11 months of 2023 authorities uncovered 1,116 criminal acts, over 3 times more than in the same period in 2022, when 356* were registered.  Still, around 25% of cigarettes consumed in the illicit market in Romania are counterfeit, according to the results of laboratory analysis carried out by the producers participating in the illicit cigarette market study.

Moreover, according to the latest World Customs Organisation report, internationally there has also been a significant increase in the number of detentions of goods infringing intellectual property rights at EU borders. The number of seizures reported by authorities increased by about 34% in 2021 compared to 2020, with cigarettes accounting for the majority of these detentions.The World Customs Organisation also notes a notable increase in seizures associated with illicit online trafficking.

At the same time, the illegal trade of loose tobacco is growing. Towards the end of last year, Romanian authorities uncovered smuggling networks that were illegally selling more than 30 tonnes of loose tobacco. The biggest seizures, recorded between September and December 2023, took place in the counties of Constanta, Calaras, Ilfov, Dolj and Mures, where authorities seized over 33 tonnes of tobacco and hookah tobacco for illicit consumption.

Real time data on the evolution of cigarette seizures in Romania can be checked in real – time on www.stopcontrabanda.ro platform, a BAT initiative that aims to support the authorities by centralizing the seizures throughout the country, but also to inform consumers on the negative impact  of cigarette smuggling on society. The campaign is developed in partnership with the Romanian Police, the Romanian Border Police, the National Agency for Fiscal Administration (ANAF) and the Romanian Customs Authority. The “Stop Contrabanda” campaign was launched in the Spring of 2017 by BAT, to create a unique information point on cigarette smuggling activity.