Australia receives intelligence on counterfeit cigarettes with local packaging — ABC News Australia

Australian authorities have received intelligence about the industrial-scale production in Southeast Asia of illegal cigarettes that imitate Australia’s olive-green plain packaging and contain health warnings. Such products may be difficult for both buyers and law enforcement to distinguish from legal ones, ABC News Australia reports.

Production abroad

According to information provided to Australia’s federal government, illegal tobacco products are manufactured on an industrial scale in Cambodia and other Southeast Asian countries. Authorities say the relevant factories are owned, financed and controlled by organised criminal groups.

During recent law enforcement operations outside Australia, cigarettes and tobacco products intended for the Australian market were found with standard local pack designs. Australian agencies are working with partners in Southeast Asia to counter the illegal tobacco trade abroad. This year, Cambodian authorities destroyed about 1,200 tonnes of counterfeit cigarettes and seized materials used to produce them.

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Legislative changes

The Australian government is seeking support for legislative changes intended to give authorities new powers to combat the illegal tobacco trade. A bill to modernise customs legislation has already passed the House of Representatives and is expected to be considered by the Senate on Thursday.

The proposed rules provide for new offences and will allow law enforcement officers to consider objective circumstances, including a suspiciously low price for a pack, branded packaging or the concealment of goods in a shop. One indication of illegal importation may be a price substantially lower than the cost of tobacco excise duty.

The Labor government rejects calls to reduce tobacco excise duty, stressing stronger enforcement. According to government data, after Queensland introduced broader powers to close illegal shops, sales of legal cigarettes rose sharply. Last year, more than half of tobacco in Australia was purchased illegally, while including vapes, nicotine pouches and other nicotine products, the black-market share reached 80%.