Illegal trade in tobacco continues despite strict ban

Illegal tobacco continues to flood the domestic market despite a crackdown on smuggling that began one month ago, according to local media.

In accordance with Decree No 76, those who smuggle, trade or store less than 1,500 illegal cigarette packs will be fined up to VND100 million (US$5,200) and prosecuted if they are in possession of a larger quantity.

Smokers can still easily purchase illegal tobacco at small shops along many streets in Ha Noi, including Hang Hanh, Hang Buom and Nguyen Sieu, according to municipal market watchers.

Illegal tobacco vendors have been forced to operate more carefully to cope with the crackdown.

Head of Market Watch Team No 2 in Ha Noi Luu Bach Chien said several tobacco shops that were selling illegally-imported tobacco purchased small quantities, which were difficult to detect.

The Ha Noi Market Watch Department has busted 17 smuggling operations, seizing more than 2,300 packs, since early September.

HCM City’s Market Watch Team 5B busted an operation at Ta Uyen-Pham Huu Chi crossroads and seized 8,890 cigarette packs in late September.

Deputy head of the Ha Noi Market Watch Department Vuong Chi Dung said the new ban would help discourage smugglers.

However, Dung said it was difficult for officials to identify and punish tobacco magnates because illegal cigarettes are often traded by vendors or sold at small shops that purchase small quantities.–VNS

According to the Viet Nam Tobacco Association, illegal cigarettes make up 20 per cent of the domestic market share, which accounts for VND3-3.5 trillion ($153-178 million) in losses from the State budget because the cigarettes are not taxed. — VNS

Tags: Vietnam tobacco