Combating illegal tobacco trafficking in the EAEU

26.09.2024
#industry news

An effective measure to combat the illegal trafficking of nicotine-containing products in the EAEU may be the adoption by other countries of the Union of legislative norms similar to those in force in the Russian Federation from April 1, 2024, according to which the illegal import of tobacco and alcoholic products threatens imprisonment for up to five years. This was stated by Deputy Chairman of the State Duma Committee on Economic Policy Artem Kiryanov.

"The replication of such a measure in the EAEU countries, together with the tightening of control and supervisory procedures, can eradicate the very prerequisites for illegal trafficking in the shortest possible time," the deputy said.

According to expert estimates, the total share of illegal goods in the Russian retail market by the end of 2023 amounted to 10.1%, which is five times higher than the global figure. The key industries where such products are most common include fashion products, cosmetics, perfumes, tobacco and nicotine-containing products. A significant proportion of such products are illegally imported from other EAEU countries.

"The illegal import of tobacco, alcohol and other product categories from the EAEU countries (Armenia, Belarus, Kazakhstan, Kyrgyzstan) is becoming the main source of filling the illegal market in Russia," Kiryanov stressed.

He noted that the greatest burden of losses from such supplies falls on the tobacco industry, and as a result, on the budget. The losses of the treasury from the funds received by the state from excise taxes exceed 123.7 billion rubles. for the market of tobacco and nicotine-containing products.

A similar situation is typical for the EAEU countries, some of which are becoming transit hubs for the further distribution of illegal products both in the markets of the Union and beyond, industry experts say.

Thus, according to Dmitry Zhukov, executive director of the Kazakhstan Association of manufacturers and importers of alcoholic and nicotine-containing products QazSpirits, after the prohibition of vaping in Kazakhstan, the situation with illegal trafficking of nicotine-containing products risks becoming uncontrollable.

"The current economic situation, the continuing increase in excise taxes on tobacco products cause consumers to switch to more affordable, illegal products, which, on the one hand, creates risks for the state — the budget of Kazakhstan loses excise revenues, on the other — for consumers, since the quality of counterfeit products cannot be controlled. According to the Kazakh Institute of Economic Research, the share of illegal tobacco sales in the country is 10%, such products are most common in the regions bordering Kyrgyzstan," he said.

A few years ago, the Kyrgyz parliament noted the problem of turning this republic into a transit center for illegal cigarettes to the EAEU markets. According to Gulnara Uskenbayeva, President of the Association of Suppliers (Manufacturers and Distributors), the situation has deteriorated significantly over the past time and directly threatens legal market players.

"The largest part of illegal products entering the market is supplied from the UAE, and the share of illegal tobacco turnover reaches, according to various estimates, up to 30-40%," Gulnara Uskenbayeva stressed.

According to her, this situation creates conditions in which market competition becomes impossible, which may lead to the exit of legal businesses from the Kyrgyz market. The expert called for increased control over the movement of goods at physical transit points, as well as an audit of the country's current legislation in this area.

According to experts, effective counteraction to illegal trafficking in the EAEU is realized by combining the experience and efforts of all countries of the Union.

Source:

iz.ru