Illicit cigarette trade (original) (raw)

The illicit cigarette trade is defined as “the production, import, export, purchase, sale, or possession of tobacco goods which fail to comply with legislation” (FATF 2012). Illicit cigarette trade activities fall under 3 categories: 1. * Contraband: cigarettes smuggled from abroad without domestic duty paid; 2. * Counterfeit: cigarettes manufactured without authorization of the rightful owners, with intent to deceive consumers and to avoid paying duty; 3. * Illicit whites: brands manufactured legitimately in one country, but smuggled and sold in another without duties being paid.