Sunday, 08 November 2009 00:00

Tobacco Smuggling and Terrorism.

Written by Andrew Romeo
Rate this item
(0 votes)

Andrew Romeo - From Inside the Tobacco IndustryIn discussions on-line about the impending PACT act becoming law, it has become obvious that American snusers feel they are getting a raw deal.

In a sense, American consumers of Swedish snus have been basking in a "duty-free" zone for the past few years, many weening themselves from cigarettes in the process.  Your lungs, God and the Greater Good think this is wonderful.  The US Government does not.  Tobacco is taxed. Period.

Swedish snus consumers in the USA will eventually be forced to pay taxes on their snus purchases.  They will most likely see in the next few years an increase in availability in US 'bricks & mortar' shops, and a drastically reduced portfolio.  No more Gotlands Julesnus or Offroad Limited Edition 'Spam with Egg, Bacon, Sausage and Spam' Flavor, for sure. But that's another article.

Many have poo-pooed an underlying reason for the passage of this legislation:  smuggling as a source of funds for terrorist groups.  Many have laughed that this is as ludicrous as the 'for the children' banter which has led to a lot of pain for legitimate adult tobacco consumers now unable to procure their favorite flavored smokes.

Goverment Over-Taxation leads to Tobacco SmugglingIn the US, tobacco is smuggled from state to state by consumers, mostly.  New York City, with smokes now costing over $10 a pack, has been a recent focus of the press, with several high-profile arrests of organized smugglers bringing master cases in for 'illicit' sale. The last 'haul' was 77m sticks, caught before the rig even left Virginia.

In Europe, the problem is magnified a thousandfold.  Imagine the UK, where a pack of Marlboro or Benson & Hedges costs $12 retail, and Poland, where the same products cost $2, and Ukraine, where they cost $1.25.  Imagine illicit cigarette factories all over China, with some also in Russia and Poland, producing fake Marlboros and B&H in underground factories, and actually undercutting the Polish and Ukrainian product.  ALL the product is headed west.

When I opened Gallaher Poland, I had the unenviable task of having to constantly identify smuggled shipments of Gallaher, or 'apparent' Gallaher product which were routinely seized by Polish customs.  We had Middle-Eastern 'Sovereign' cases smuggled via Dubai in cases marked "Computers."  We had lorries loaded with Russian cigarettes seized at the border and shown on the Polish equivalent of "COPS" which led us to send a high-level delegation to the eastern borders to verify the EU's investment in new detection technologies. Our lawyer constantly flew to the port of Gdansk to verify the authenticity of the seized products.  More often than not, they were Chinese fakes on the way to the UK.  Poland is a flat country of East-West roads between the ex-Soviet bloc and the West.  Having an office there exposed an underbelly of the business which no company wants to see.


Tobacco companies deplore smuggling.  Like any consumer goods companies, they must respect and protect their country-specific businesses and distributors.  Strict contracts are in place with national Smuggling Cigarettesdistributors to prevent international shipments, but they happen anyway.  It's simple human nature.  When Poland entered the EU in 2004, many Poles moved to the UK and Ireland to find work.  Many also found that they could stock up on cheap Polish-produced multinational cigarette brands and shuttle them across on buses and planes.  For many, it became a primary source of income.

But they weren't the problem.  2004 was the first year I saw 'the list.'  It was the list of distributors with whom we are forbidden to work.  Like all "Big Tobacco" companies, Gallaher hired ex-intelligence agents to run its Security Department.  "The List," we were told, was one of companies known to be connected to organized crime and terrorism.  They were scattered throughout the Middle-East and places like Cyprus, which is the geographical 'jumping-off' point from the EU to the Middle-East.

The meetings were serious.  Gallaher Management told us that 'cigarette smuggling finances terrorism.'  Names like "Hezbollah" were thrown around, and a greater, more depressing world of tobacco was opened up to my colleagues and me.

Whether it's Ukrainian Marlboros being shipped to Indiana or cases of fake Chinese B&H in Manchester, UK, the illicit tax-free sale of cigarettes is handled by criminals.  It is indisputable.

In the US, substitute 'Mafia' for 'Terrorism.'  But it's the same.

While US Swedish snus users are right to feel screwed by this legislation, there is indeed a greater good to be served by PACT.  It will not stop consumers from crossing borders or visiting Indian reservations for tobacco products.  But it could be effective in reducing the illicit trans-continental movement of legitimate and illegitimate tobacco products whose sale benefit criminal organizations.

Keep it in mind.

Live from New York on

Read 47827 times Last modified on Saturday, 09 November 2013 03:08

Leave a comment

Your Comments will be reviewed by our moderator. Thanks for your thoughts!


Latest Member Snus Reviews

Skruf Greatness

Matt Campbell , Wednesday, March 23, 2016 I have has so many different Snus During my career of ...

Great snus!

Daniel M. , Sunday, January 24, 2016 Thunder Ultra Cool Mint white dry is a great snus. I bought...

This was a disappointment to me.

Bryon R. , Tuesday, October 27, 2015 Skruf Original Portion Snus is nothing to brag to mom about....

An awesome los snus

Justin S. , Tuesday, October 27, 2015 Röda Lacket Loose Snus is just awesome. In the loose ...

I love the smell of chocolate in the morning

Bryon R. , Tuesday, October 27, 2015 Ettan Original Portion snus absolutely billows a dark ...

It's like Ettan portion’s weird half-brother.

Bryon R. , Tuesday, October 27, 2015 This snus has a good quality tobacco and portion material ...

Smells EXACTLY as one would expect

Bryon R. , Tuesday, October 27, 2015 Probe Whisky loose snus smells of tobacco and whiskey. Its ...

Really good snus!

Chris M. , Saturday, August 22, 2015 General Snus is the only real snus I can buy in American ...

A staple snus for me

Larry Waters , Saturday, August 15, 2015 This XRANGE snus is essentially Göteborgs Rapé Large White...

This is a great snus!

Teri S. , Friday, August 14, 2015 Olde Ving Fudge portion had a very different snus flavor for...

Snus Central Twitter

Latest News from SnusCENTRAL

Snus User turns Pro: the Amazing Offroad Brandy Alexander Portion Snus Story

I don't often write snus reviews. It's not that I can't; it's just that my credo has… Read More...

US Cities Banning Wintergreen and Mint Smokeless Tobacco AND Snus

The calls for banning flavored nicotine-containing products has been primarily a long and… Read More...

Swedish Match pulls General Loose Snus from US Stores

General Loose (lös) Snus doesn't make the cut in US stores Based on consumer demand,… Read More...

Perfect Facebook Like Box Sidebar