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Illicit tobacco trade: Nearly 370 million cigarettes seized in 2020

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International operations involving the European Anti-Fraud Office (OLAF) led to the seizure of nearly 370 million illegal cigarettes in 2020. The majority of the cigarettes were smuggled from countries outside the EU but destined for sale on EU markets. Had they reached the market, OLAF estimates that these black market cigarettes would have caused losses of around €74 million in customs and excise duties and VAT to EU and member state budgets.

 OLAF supported national and international customs and law enforcement agencies from across the world in 20 operations during 2020, in particular providing vital information on the identification and tracking of lorries and/or containers loaded with cigarettes misdeclared as other goods at the EU borders. OLAF exchanges intelligence and information in real time with EU member states and third countries, and if there is clear evidence that the shipments are destined for the EU contraband market, national authorities are ready and able to step in and stop them.

OLAF Director-General Ville Itälä said: “2020 was a challenging year in so many ways.  While many legitimate businesses were forced to slow or halt production, the counterfeiters and smugglers continued unabated. I am proud to say that OLAF’s investigators and analysts played a vital role in helping to track and seize these illegal tobacco shipments, and that OLAF’s cooperation with authorities across the globe has remained strong despite the challenging conditions. Our joint efforts have not only helped save millions of euros in lost revenues and kept millions of contraband cigarettes of the market, they have also helped us get closer to the ultimate goal of identifying and closing down the criminal gangs behind this dangerous and illegal trade.”

A total of 368,034,640 cigarettes destined for illegal sale in the EU were seized in operations involving OLAF during 2020; of these 132,500,000 cigarettes were seized in non-EU countries (primarily Albania, Kosovo, Malaysia and Ukraine) while 235,534,640 cigarettes were seized in EU member states.

OLAF has also identified clear patterns with regard to the origins of this illicit tobacco trade: of the cigarettes seized in 2020, some 163,072,740 originated in the Far East (China, Vietnam, Singapore, Malaysia), while 99,250,000 were from the Balkans/Eastern Europe (Montenegro, Belarus, Ukraine). A further 84,711,900 originated in Turkey, while 21,000,000 came from the UAE.

The main cigarette smuggling operations reported by OLAF in 2020 involved collaborations with authorities in Malaysia and Belgium, Italy and Ukraine, as well as a number involving authorities from across the EU and elsewhere.

OLAF mission, mandate and competences

OLAF’s mission is to detect, investigate and stop fraud with EU funds.

OLAF fulfils its mission by:

  • Carrying out independent investigations into fraud and corruption involving EU funds, so as to ensure that all EU taxpayers’ money reaches projects that can create jobs and growth in Europe;
  • contributing to strengthening citizens’ trust in the EU Institutions by investigating serious misconduct by EU staff and members of the EU Institutions, and;
  • developing a sound EU anti-fraud policy.

In its independent investigative function, OLAF can investigate matters relating to fraud, corruption and other offences affecting the EU financial interests concerning:

  • All EU expenditure: the main spending categories are Structural Funds, agricultural policy and rural
  • development funds, direct expenditure and external aid;
  • some areas of EU revenue, mainly customs duties, and;
  • suspicions of serious misconduct by EU staff and members of the EU institutions.

Cigarettes

Tobacco Excise Directive consultation: 83% of submissions warning about higher taxes on vaping

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The World Vapers’ Alliance strongly urges policymakers to stay away from equating smoking tobacco and vaping, especially when it comes to taxation. This comes off the heels of a recently ended consultation on the update of the Tobacco Excise Directive, which specified the European Commission’s intention to tax vaping products similarly to how cigarettes are taxed. 

Commenting on the consultation, WVA Director Michael Landl said: “Making vaping less appealing to smokers by higher prices will discourage current smokers from switching to less harmful alternatives. This is certainly not going to be of any public health benefit. Additionally, high taxes on vaping products are particularly harmful to the lower income brackets of the population, which make up the largest proportion of current smokers.”

The consultation ended on 5 January and out of 134 responses from citizens, associations and industry, 113, or 84% referenced the positive impacts of vaping and the serious negative impact that taxing it the same as cigarettes would have.

Michael Landl added: “I am delighted by the overwhelming number of responses in favour of vaping to this consultation. It shows that many people know the potential for harm reduction of vaping. . What policymakers need now to understand is that tax hikes on vaping will lead to people switching back to smoking, an outcome absolutely nobody wishes for.”

Therefore, for the WVA it is important that non-combustible products are not regulated and taxed the same way combustible tobacco is. Lawmakers need to follow the scientific evidence and abstain from tighter regulation and higher taxation of vaping products.

“If we want to reduce smoking induced burdens on public health, access and affordability to vaping products need to be guaranteed,” Landl concluded.

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Cancer

Europe’s Beating Cancer Plan: Time to back vaping and beat cancer

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Europe’s Beating Cancer Plan needs bold action on tobacco, and MEPs must Back Vaping to Beat Cancer, according to the World Vapers’ Alliance. The Special Committee on Beating Cancer (BECA) today identified that  ‘tobacco use, in particular cigarette smoking is the main risk factor for cancer death in Europe’.

Commenting on the new document, World Vapers’ Alliance (WVA) Director Michael Landl said: “To succeed in its mission, the BECA committee and the European Parliament must be brave enough to endorse new approaches. Vapers across Europe are calling on policymakers to recognise the benefits of vaping, and its potential to massively reduce the harm of smoking. Policymakers cannot ignore the facts any longer.

"We appreciate the commitment from MEP Mrs. Véronique Trillet-Lenoir and the entire Special Committee on Beating Cancer to fight smoking-related cancer. The Europe Beating Cancer Plan needs to endorse vaping as an effective tool to help smokers move to a safer alternative. That’ Back vaping, beat cancer!”

The new working document presented in today’s Special Committee on Beating Cancer (BECA) by the Committee's rapporteur MEP Véronique Trillet-Lenoir states that:  “Tobacco use, in particular cigarette smoking, is the main risk factor for cancer death in Europe. Various measures to fight against smoking appear heterogeneous and inconsistently implemented. Overall, the WHO Europe region is the global area with the highest tobacco consumption, with major discrepancies between Member States, as the proportion of smokers varies by a factor of up to 5 from one country to another.”

  • The European Parliament’s Special Committee on Beating Cancer (BECA) met for the second time today for an exchange of views with Health Commissioner Stella Kyriakides.

  • As part of the Committee’s work, a draft WORKING DOCUMENT on Inputs of the Special Committee on Beating Cancer (BECA) to influence the future Europe’s Beating Cancer Plan was released by the Committee and its rapporteur Veronique Trillet-Lenoir. It identifies that tobacco is the main risk factor for cancer death in Europe. You can find the document here.

  • The World Vapers’ Alliance (WVA) amplifies the voice of vapers around the world and empowers them to make a difference for their communities. Our members are vapers associations as well as individual vapers from all over the world. More information available here. 

  • Michael Landl is the director of the World Vapers’ Alliance. He is from Austria and based in Vienna. He is an experienced policy professional and passionate vaper. He studied at the University of St. Gallen and worked for several public policy outlets and as well in the German Parliament.

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Cigarettes

Backing #Vaping to beat #Cancer

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The upcoming European Union's Beating Cancer Plan is a historic chance to improve public health in Europe. Cancer is the second leading cause of death in the EU. 1.3 million people die from cancer each year in the EU and 700,000 of those deaths are associated with smoking. Despite these terrifying numbers, approximately 140 million Europeans are still smoking. The European Union is right to tackle the disease with a holistic approach, writes Michael Landl (pictured).

A comprehensive approach needs to include prevention and harm reduction. While it is important that lawmakers do everything, they can to prevent people from starting smoking, it is equally important to support current smokers in their quest to quit. Including e-cigarettes (vaping) in the EU Beating Cancer Plan will help millions of European who are struggling to quit smoking and consequently prevent many deaths associated with cancer from smoking.

E-cigarettes contain liquid which is heated and turned into vapour. There is no tobacco nor tar in e-cigarettes and many of the toxins in cigarettes are not present in e-cigarettes. In 2015, Public Health England declared that vaping is 95% less harmful than smoking and began recommending that current smokers switch to electronic cigarettes. Countries like Canada and New Zealand followed their lead and have helped save millions of lives. In fact, these policies promoting vaping arguably achieved more in a short period of time than what lawmakers tried to accomplish for years: fewer people smoking cigarettes. 

We know that abstinence is not as effective as alternatives, such as vaping. According to a 2019 study from Queen Mary University London of 100 smokers trying to quit cold turkey, only three to five succeed - while according to the same study, vaping is even more effective for smoking cessation than nicotine-replacement therapy, like patches or gums.

Despite the weight of evidence, a number of governments have considered new restrictions on vaping, rather than make it more accessible. While often well intentioned most newly proposed regulations, such as flavour liquid bans or higher taxes, would disproportionately harm smokers who are trying to quit. This runs directly against the goal of beating cancer.

The EU Beating Cancer Plan is a massive opportunity to ramp up the fight against smoking. Lawmakers should include vaping in the plan as a harm reduction tool to prevent cancer. The European Union's institutions and governments should follow the lead of countries like the United Kingdom, Canada and New Zealand and encourage the use of vaping as a less harmful alternative for adult smokers.

If the European Union is serious about improving health, we must back vaping to beat cancer.

About the World Vapers' Alliance

The World Vapers’ Alliance (WVA) amplifies the voice of passionate vapers around the world and empowers them to make a difference for their communities. The alliance partners with 19 groups representing vapers worldwide and represents individual vapers. Michael Landl, the WVA’s director, is an experienced policy professional and a passionate vaper.

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