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Contraband tobacco in Canada

Contraband tobaccoUnfortunately the contraband tobacco in Canada is in permanent growing. Illegal sales of tobacco contribute to a clandestine economy worth hundreds of millions of dollars and are a significant source of money for organized crimes. The obtained income from contraband tobacco is reinvested to support other criminal activities, to finance drug trafficking in Canada and to purchase illegal weapons. Smuggling tobacco is more dangerous as it involves more and more youth from year to year and encourages them to take up smoking through unrestricted access to inexpensive cigarettes. Thus an illegal product is sold for $6 for one carton (200 cigarettes), while the legal one is sold for $75-90. All these activities resulting from the sales of illicit tobacco activities affect the safety and security of Canadian communities and children.

Thus according to an independent research company over 105 high-schools from Ontario and Quebec concluded that, in Ontario 24% of high school smokers’ cigarette butts were contraband, while in Quebec, contraband made up 35% of school yard cigarettes. It is obvious that contraband tobacco is a big problem that Canadian government and other organizations are fighting with. It is not easy and the solutions are not all the time effective, that’s why a team-work is needed to remove from the Canadian market the counterfeit cigarettes or at least to decrease their number in time and to make efficient laws in contraband tobacco.

Here are the statistics obtained after the study in those 105 high-schools:

- 11,267 cigarette butts from around schools were collected - 5457 in Ontario and 5810 in Quebec.

- In Ontario, the highest and lowest incidences of contraband included Newmarket and Aurora with 50% and 47% respectively, while Burlington and Oakville had the lowest, at 9% and 8% respectively.

- In Quebec, the highest and lowest incidences of contraband included Anjou and Côte-des-Neiges with 74% and 60% respectively, while St-Michel and Greenfield Park held the lowest at 12% and 18% respectively.

- 22 of the 44 municipalities/regions surveyed had over 30% share of illegal cigarette butts. 11 municipalities had over 40% share of illegal cigarette butts from the areas reviewed.

 

The Spread of Contraband Tobacco Among Youth

Ontario (55 high schools)

City

% Contraband

Toronto

23

Hamilton

15

Durham Region

% Contraband

Durham Region Average

28

Ajax

15

Pickering

39

Whitby

24

Oshawa

32

Halton Region

% Contraband

Halton Region Average

9

Burlington

9

Oakville

8

Milton

10

Peel Region

% Contraband

Peel Region Average

36

Brampton

29

Mississauga

44

York Region

% Contraband

York Region Average

32

Aurora

47

Markham

27

Newmarket

50

Richmond Hill

15

Vaughan

24

Quebec (50 high schools)

City

% Contraband

Greater Montreal Area

37

Quebec City

32

Area

% Contraband

Anjou

74

Côte-des-Neiges

60

Dorval

38

Duvernay

48

Greenfield Park

18

Jean-Talon

38

Lachine

34

Laval-Des-Rapides

55

Laval-Ouest

50

Longeuil

50

Montreal

41

Notre-Dame-de-Grâce

25

Pierrefonds

36

Pointe-Claire

31

Rosemont

36

St-Michel

12

Snowdon

31

Verdun

52

Westmount

26

According to statistics Canadian reports about 5 million Canadians consumes legal tobacco, while the illicit ones is used by more people and the number of those people is in continuous rising, thus producing negative impact on Canadian people, on economic integrity, federal and provincial governments lose hundreds of millions yearly in tax revenue, money that could be used for financing different programs. If in 2006 illicit tobacco was used by 16.5% of smokers, than in 2007 it grew to 22%. The majority of smokers using illegal tobacco are those from low income families.

It is important to identify the legal and the illicit product, thus according to Royal Canadian Mounted Police (RCMP) here is what every citizen while buying cigarettes should know:

- Under the Excise Act, 2001, a label or tear strip must appear on packages of cigarettes and pouches of tobacco indicating that the manufacturer has paid the relevant duties.

- The manufacturer's name and address, or the manufacturer's permit number must also appear on the package.

- If you purchase tobacco products that are not marked as required by law, you are in possession of illegal products.

- Cigarettes sold in unstamped cartons, resalable plastic bags or which do not display Health Canada warnings on the package.

Also be aware when tobacco products are sold through untraditional vendors, because this is a sign that the product probably smuggled, manufactured illegally or counterfeit:

- on the street or in a parking lot;

- offered tax-free on the Internet; or

- at unreasonably low prices

Most illicit tobacco products are brought to Canada through sea containers from China and Marlboro cigarettes are the most exposed product to being counterfeit. Because fakers are reproducing the taste of the Marlboro cigarettes to identify them by taste as being illicit is quite difficult for the smokers, thus they should follow the advices mentioned above.

In 2006 about 22% of contraband cigarettes seized by RCMP in collaboration with other organizations, were counterfeit and 6% of them were illegal foreign tobacco products. Between 2003 and 2006, Canada Border Services Agency (CBSA) seized 823,303 cartons of cigarettes, of which 478,705 cartons were counterfeit Canadian brands and 87,507 cartons were counterfeit Marlboro cigarettes. Other international brands seized were mostly Chinese cigarettes.

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