Re-export of smuggled cigarettes: Creating a "mechanism" for smuggled cigarettes?

	Two cases of smuggled cigarettes and violent toys detected
	Handling illegally imported cigarettes
	Smuggled gold across An Giang border

Smuggling of cigarettes at the Southwest border.

Difficult to determine the quality of smuggled cigarettes

According to the Market Management Department (under the Ministry of Industry and Trade), Dong Thap, Long An, An Giang, Can Tho, Gia Lai, Dong Thap, Tay Ninh and Ho Chi Minh City are still hot spots of smuggled cigarettes in Vietnam. Only in the first 4 months of 2017, the market management team handled 1,321 violations; total State budget revenues were more than 4.1 billion vnd. The competent teams confiscated 356,699 packs of cigarettes, seized 07 cars, 100 motorbikes, 3 other vehicles and transferred 14 cases to investigation agencies. Only in May 2017, the Long An Market Management arrested 11 cases of smuggled cigarettes and 29,235 packs of illegally imported cigarettes.

The Tobacco Association reflected that while the fight against cigarette smuggling was difficult due to insufficient forces, sanctions are not enough stiff and heavy, perpetrators are more and more aggressive. Recently, the Government promulgated Document No. 3825 / VPCP-VI for the pilot re-export, auction of smuggled cigarettes of high quality, which has caused many ministries and industries to be concerned that the re-export will pose a high risk of fraud, causing the Government to continue losing revenues.

Earlier, the proposal for re-export of smuggled cigarettes was implemented in accordance with Decision No. 1112 / QD-TTg of 21^st August 2012. However, after 2 years of pilot implementation, the reality has shown that this proposal has too many shortcomings in both control and implementation. In 2014, the Prime Minister issued the Decision No. 2371 / QD-TTg requiring the destruction of all smuggled and confiscated cigarettes, bringing smuggled cigarettes to Vietnam by 2015 down by more than 30% compared to 2014.

Many people argue that it is difficult to determine whether smuggled cigarettes have a high quality or not. In fact, the Institute of Criminal Science - Ministry of Public Security and the Institute of Tobacco Control have tested some samples of smuggled cigarettes and found that the proportion of toxic components and the proportion of other components, such as tobacco and nicotine in smuggled cigarettes, accounting for 80% to 90% of all cigarettes smuggled into Vietnam. This test showed that most smuggled cigarettes are meet the quality criteria and do not conform to the national technical standards for cigarettes.

Earlier, when some localities proposed re-export of smuggled cigarettes, the Ministry of Justice said: The re-export of smuggled cigarettes requires a large amount, while there are many cases of confiscation of smuggled cigarettes in small quantities. Thus, there is a need place to store and preserve cigarettes, while the authorities in many localities have no storage facilities, which endangers public health. Besides, the collection, transportation and packing at the warehouse for re-export have been not under the close management and supervision.

The risk of penetration of smuggled cigarettes

According to Article 22 of Decree No. 67/2013 / ND-CP, cigarettes which are sold legally in Vietnam must be printed health warnings with both images and words and health warnings must occupy at least 50% of the front and back sides of the cigarette packs. If confiscated cigarettes are auctioned for domestic consumption, then they must comply with all the strict requirements mentioned above or not?

The delegate of National Assembly of Ninh Thuan province, Mr. Nguyen Sy Cuong affirmed that it was difficult for illegal cigarettes to meet at least 6 regulations on labeling, printing warning, stamping, printing barcodes and registration trademark, national technical regulations on cigarettes as stipulated in Article 15 of the Law on Tobacco Control and Prevention 2012 and Decree No. 67/2013 / ND-CP. Therefore, if we allow selling smuggled cigarettes for domestic consumption, it would be extreme unequal for domestic producers, traders, causing loopholes for tobacco smuggling. "I think that domestic auction will create very dangerous loopholes for smugglers to take advantage of illegal cigarettes for domestic consumption, causing market manipulation, and the State will not control smuggled cigarettes. Thus, the risk of smuggling will increase rapidly and budget revenue losses caused by smuggling of cigarettes will be much higher than the current figure of 10,000 billion vnd", Mr. Nguyen Sy Cuong stressed.

“Where will illegal cigarettes be re-exported” is the question that many people are concerned. In fact, most of the smuggled cigarettes are unsuitable for countries in the region, only suitable for Vietnamese smokers. Moreover, due to the lack of health warnings, no prints of places of production, no print time and no quality certificates, these smuggled cigarettes are not eligible for importation in many countries, so the re-export of smuggled cigarettes to a certain foreign market is unrealistic. Therefore, re-export activities only create conditions for smuggled cigarettes to be brought back to Vietnam more easily.

Hidden 2,000 packs of smuggled cigarette under passenger seat VCN – A case of smuggling 2,000 packs of foreign cigarette has been seized by Integrated Control ...

The Ministry of Health said that according to Clause 1, Article 9 of the Law on Tobacco Prevention and Control 2012; the production, sale, import, storage, and transportation of illegally imported cigarettes are prohibited. Therefore, allowing the pilot auction of illegally imported smuggled cigarettes for domestic consumption is like creating a legal loophole for smugglers to take advantage of the Law to import illicit cigarettes into Vietnam.