Cigarette smuggling
Encyclopedia
Cigarette smuggling is the illicit transportation of cigarette
s from an administrative division with low taxation to a division with high taxation for sale and consumption. The practice, commonly used by Organized crime
syndicates and rebel groups, is a form of tax evasion
.
the Irish Republican Army
(IRA), a designated terrorist organization, smuggled cigarettes to raise money for attacks.
, Montenegro
was known for being a haven for cigarette smuggling into Italy
.
each of the fifty states
tax cigarette packs at a different price. In 1992 states charged an average of 25 cents. By January 2002 that average increased to 45 cents. Six months later states, trying to compensate for budget deficits, raised their cigarette taxes to an average 54 cents. According to John D'Angelo of the U.S. government's Bureau of Alcohol, Tobacco, and Firearms (ATF), there is a "direct relationship between the increase in a state's tax and an increase in illegal trafficking." This is true with all psychotropic substances, the more the state tries to repress the trade with a legal or illegal substnce, the higher the prices and with them the profit margins become, which leads to an increase in illegal trafficking, and in the case of complete crimininalization of a substance also to unknown purity levels of the substance, which leads to an increase in fatal overdoses and costs for the health system. The U.S. government foiled funding operations by Al Qaeda in New York
in 1999 and Hezbollah in North Carolina
in 2002.
It has been reported that smuggling one truckload of cigarettes within the United States
can lead to a profit of US$2 million.
Cigarette
A cigarette is a small roll of finely cut tobacco leaves wrapped in a cylinder of thin paper for smoking. The cigarette is ignited at one end and allowed to smoulder; its smoke is inhaled from the other end, which is held in or to the mouth and in some cases a cigarette holder may be used as well...
s from an administrative division with low taxation to a division with high taxation for sale and consumption. The practice, commonly used by Organized crime
Organized crime
Organized crime or criminal organizations are transnational, national, or local groupings of highly centralized enterprises run by criminals for the purpose of engaging in illegal activity, most commonly for monetary profit. Some criminal organizations, such as terrorist organizations, are...
syndicates and rebel groups, is a form of tax evasion
Tax evasion
Tax evasion is the general term for efforts by individuals, corporations, trusts and other entities to evade taxes by illegal means. Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability,...
.
Ireland
In IrelandIreland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
the Irish Republican Army
Provisional Irish Republican Army
The Provisional Irish Republican Army is an Irish republican paramilitary organisation whose aim was to remove Northern Ireland from the United Kingdom and bring about a socialist republic within a united Ireland by force of arms and political persuasion...
(IRA), a designated terrorist organization, smuggled cigarettes to raise money for attacks.
Montenegro
In the Former YugoslaviaYugoslavia
Yugoslavia refers to three political entities that existed successively on the western part of the Balkans during most of the 20th century....
, Montenegro
Montenegro
Montenegro Montenegrin: Crna Gora Црна Гора , meaning "Black Mountain") is a country located in Southeastern Europe. It has a coast on the Adriatic Sea to the south-west and is bordered by Croatia to the west, Bosnia and Herzegovina to the northwest, Serbia to the northeast and Albania to the...
was known for being a haven for cigarette smuggling into Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
.
United States
In the United StatesUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
each of the fifty states
U.S. state
A U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...
tax cigarette packs at a different price. In 1992 states charged an average of 25 cents. By January 2002 that average increased to 45 cents. Six months later states, trying to compensate for budget deficits, raised their cigarette taxes to an average 54 cents. According to John D'Angelo of the U.S. government's Bureau of Alcohol, Tobacco, and Firearms (ATF), there is a "direct relationship between the increase in a state's tax and an increase in illegal trafficking." This is true with all psychotropic substances, the more the state tries to repress the trade with a legal or illegal substnce, the higher the prices and with them the profit margins become, which leads to an increase in illegal trafficking, and in the case of complete crimininalization of a substance also to unknown purity levels of the substance, which leads to an increase in fatal overdoses and costs for the health system. The U.S. government foiled funding operations by Al Qaeda in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
in 1999 and Hezbollah in North Carolina
North Carolina
North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...
in 2002.
It has been reported that smuggling one truckload of cigarettes within the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
can lead to a profit of US$2 million.
See also
- Bureau of Alcohol, Tobacco, Firearms and ExplosivesBureau of Alcohol, Tobacco, Firearms and ExplosivesThe Bureau of Alcohol, Tobacco, Firearms and Explosives is a federal law enforcement organization within the United States Department of Justice...
(ATF) - Human traffickingHuman traffickingHuman trafficking is the illegal trade of human beings for the purposes of reproductive slavery, commercial sexual exploitation, forced labor, or a modern-day form of slavery...
- Illegal drug tradeIllegal drug tradeThe illegal drug trade is a global black market, dedicated to cultivation, manufacture, distribution and sale of those substances which are subject to drug prohibition laws. Most jurisdictions prohibit trade, except under license, of many types of drugs by drug prohibition laws.A UN report said the...
- Organized crimeOrganized crimeOrganized crime or criminal organizations are transnational, national, or local groupings of highly centralized enterprises run by criminals for the purpose of engaging in illegal activity, most commonly for monetary profit. Some criminal organizations, such as terrorist organizations, are...
- Rum running