Nicotine - Illicit, Bootleg, & Alternative Markets: Difference between revisions

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Regulations, Laws, and Money motivate people to circumvent the rules and to seek alternative ways to get products to consumers. As lawmakers look at future regulations, they must consider the unintended consequences of those regulations. This page will attempt to track some of those consequences.
Regulations, Laws, and Money motivate people to circumvent the rules and to seek alternative ways to get products to consumers. As lawmakers look at future regulations, they must consider the unintended consequences of those regulations. This page will attempt to track some of those consequences.


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===2021: Article: [https://www.smh.com.au/national/western-australia/black-market-cigarettes-a-growing-boom-trade-in-wa-warns-ex-top-border-cop-20210121-p56vzf.html?fbclid=IwAR2sQ8gZjcuLHXznvCq5_xxXKKly6h74bDrHyOtQ9iYEhCJtj-xly-znrys Black market cigarettes a growing boom trade in Western Australia, warns ex-top border cop]
===2021: Article: [https://www.smh.com.au/national/western-australia/black-market-cigarettes-a-growing-boom-trade-in-wa-warns-ex-top-border-cop-20210121-p56vzf.html?fbclid=IwAR2sQ8gZjcuLHXznvCq5_xxXKKly6h74bDrHyOtQ9iYEhCJtj-xly-znrys Black market cigarettes a growing boom trade in Western Australia, warns ex-top border cop]===
*The founder of Border Force's illegal tobacco squad says one in five cigarettes smoked in Australia is illegal and demand has spawned a smuggling trade worth hundreds of millions of dollars each year, with a recent record-breaking case in Western Australia.
*The founder of Border Force's illegal tobacco squad says one in five cigarettes smoked in Australia is illegal and demand has spawned a smuggling trade worth hundreds of millions of dollars each year, with a recent record-breaking case in Western Australia.
* the black market for illegal tobacco – imported mainly from Asia and the Middle East – has grown, with the ATO estimating about $650 million in potential tobacco excise revenue was lost in 2017-18.
===2021: Article: [https://edmonton.ctvnews.ca/man-receives-100k-fine-after-aglc-seized-nearly-6-700-pounds-of-contraband-tobacco-1.5364849 Man receives $100k fine after AGLC seized nearly 6,700 pounds of contraband tobacco]===
*The potential lost tax revenue of the products was estimated by Alberta Gaming, Liquor and Cannabis (AGLC) to be more than $972,000.




===2020: Article: [https://filtermag.org/native-american-reservations-new-york-vape-shops/ Native American Reservations a Haven for New York Vape Shops]===
===2020: Article: [https://filtermag.org/native-american-reservations-new-york-vape-shops/ Native American Reservations a Haven for New York Vape Shops]===
*New York State’s 20 percent excise tax on vapor products and nearly 9 percent sales tax also do not apply to the Shinnecock and other tribes. Essentially, Silva said, patrons can spend almost 30 percent less than they normally spend, and nobody has to worry about breaking the law.
*New York State’s 20 percent excise tax on vapor products and nearly 9 percent sales tax also do not apply to the Shinnecock and other tribes. Essentially, Silva said, patrons can spend almost 30 percent less than they normally spend, and nobody has to worry about breaking the law.
===2017: Article: [https://www.stltoday.com/news/local/crime-and-courts/second-illinois-man-charged-with-using-fake-business-to-buy/article_70009b80-513d-52bb-ba1d-5685d2b2070c.html Second Illinois man charged with using fake business to buy and sell $3M in tax-exempt cigarettes]===
*Most of the cigarettes Khatib bought were allegedly sold in Chicago, where the state excise tax is $1.98 per pack compared to 17 cents per pack in Missouri. Khatib and Qaddoumi allegedly kept the inflated profits.
===2017: Article: [https://www.stltoday.com/news/local/crime-and-courts/women-allegedly-bought-up-cigarettes-in-low-tax-missouri-to/article_54dd41be-8d5a-599e-990b-1770d43c148a.html?fbclid=IwAR2tsMmIMMwIX4GbWHQFWoJkSPP4gmbtzN5oQ28C5M_lPUV5s8U0f0MGM2o Women allegedly bought up cigarettes in low-tax Missouri to sell in high-tax New York]===
*The women admitted they had driven around the St. Louis area in a rented car buying them up [160 cartons of cigarettes], with plans to sell them back in New York. In addition to the recovered cigarette cartons, police found about two dozen fake credit cards that the women apparently used to buy them.




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*[https://www.nap.edu/login.php?record_id=19016&page=https%3A%2F%2Fwww.nap.edu%2Fdownload%2F19016 PDF version]
*[https://www.nap.edu/login.php?record_id=19016&page=https%3A%2F%2Fwww.nap.edu%2Fdownload%2F19016 PDF version]
*Citation: National Research Council. 2015. Understanding the U.S. Illicit Tobacco Market: Characteristics, Policy Context, and Lessons from International Experiences. Washington, DC: The National Academies Press. https://doi.org/10.17226/19016.
*Citation: National Research Council. 2015. Understanding the U.S. Illicit Tobacco Market: Characteristics, Policy Context, and Lessons from International Experiences. Washington, DC: The National Academies Press. https://doi.org/10.17226/19016.


===2013: Article: [https://www.seattlebusinessmag.com/blog/cigarette-smuggling-makes-wa-tax-revenue-go-smoke Cigarette smuggling makes WA tax revenue go up in smoke]===
===2013: Article: [https://www.seattlebusinessmag.com/blog/cigarette-smuggling-makes-wa-tax-revenue-go-smoke Cigarette smuggling makes WA tax revenue go up in smoke]===
*Washington’s Department of Revenue estimates the state lost about $376 million in tax revenue in 2012 to cigarette tax evasion. An estimated 35 percent of the cigarettes in Washington are contraband.
*Washington’s Department of Revenue estimates the state lost about $376 million in tax revenue in 2012 to cigarette tax evasion. An estimated 35 percent of the cigarettes in Washington are contraband.


=Black Market=
 
 
=Illicit Market=
 
 
===2022: Article: [https://yle.fi/news/3-12347060 Finnish customs seize record quantity of snus]===
*Smuggling the tobacco product has grown into an increasingly organised criminal activity worth millions of euros.




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*Officials say that name-brand cigarettes will be sold at current prices in the prisons’ canteens. Cigars and smokeless tobacco products will also be sold.
*Officials say that name-brand cigarettes will be sold at current prices in the prisons’ canteens. Cigars and smokeless tobacco products will also be sold.
*“We all know that many of our clients are paying exorbitant prices for ‘black market’ tobacco and are smoking in their cells around other prisoners,” he said. “Providing places to smoke legally and more safely outside and using money from tobacco sales for reentry services and job training sounds like a step in the right direction to me. We’ll see how the actual implementation goes.”
*“We all know that many of our clients are paying exorbitant prices for ‘black market’ tobacco and are smoking in their cells around other prisoners,” he said. “Providing places to smoke legally and more safely outside and using money from tobacco sales for reentry services and job training sounds like a step in the right direction to me. We’ll see how the actual implementation goes.”
===2021: Testimony in Netherlands pertaining to a potential flavour / flavor ban: [https://www.clivebates.com/documents/NLFlavoursResponseJan2021.pdf Regulation of e-cigarette flavours – a response]===
*Signed by 24 experts from around the world
*Covers 12 key points including prohibition and black markets




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*About 79 percent of respondents said they would “look to the black market” if products they use “were banned tomorrow," while 14 percent said they would return to smoking analog cigarettes.
*About 79 percent of respondents said they would “look to the black market” if products they use “were banned tomorrow," while 14 percent said they would return to smoking analog cigarettes.
*Home-blended e-liquid would become common in response to flavor bans. This runs counter to the regulatory goal, which is to ensure safety.
*Home-blended e-liquid would become common in response to flavor bans. This runs counter to the regulatory goal, which is to ensure safety.
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=Counterfeit=
=Counterfeit=
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===2019: Video: [https://www.youtube.com/watch?v=Irs1YmmvNCk Fake Cigarettes from Blumentritt]===
===2019: Video: [https://www.youtube.com/watch?v=Irs1YmmvNCk Fake Cigarettes from Blumentritt]===
*Fake cigarettes being sold for by illegal vendors along Blumentritt, Manila City. Real or fake, both can give you cancer. But the fake ones might get you there even faster. There are various studies worldwide which proved counterfeit cigarettes are even more dangerous than regulated cigarettes. "The research team’s study concluded that there were much higher concentrations of toxic heavy metals consistently found in counterfeit cigarettes that were seized in the U.S. compared to genuine brands." - Department of Sciences at John Jay College of Criminal Justice
*Fake cigarettes being sold for by illegal vendors along Blumentritt, Manila City. Real or fake, both can give you cancer. But the fake ones might get you there even faster. There are various studies worldwide which proved counterfeit cigarettes are even more dangerous than regulated cigarettes. "The research team’s study concluded that there were much higher concentrations of toxic heavy metals consistently found in counterfeit cigarettes that were seized in the U.S. compared to genuine brands." - Department of Sciences at John Jay College of Criminal Justice
===2017: Study: [https://www.ingentaconnect.com/content/trsg/trs/2017/00000003/00000003/art00010 Counterfeit Electronic Cigarette Products with Mislabeled Nicotine Concentrations]===
* We introduce 2 novel issues in the e-cigarette industry, the production of counterfeit refill fluids under a brandjacked label and inclusion of nicotine in 81.3% of the counterfeit products labeled 0 mg/mL. This study emphasizes the need for better control and monitoring of nicotine containing products and sales outlets.
*[https://www.ingentaconnect.com/content/trsg/trs/2017/00000003/00000003/art00010# PDF Version]
*Citation: Authors: Omaiye, Esther E.; Cordova, Iliana; Davis, Barbara; Talbot, Prue - Source: Tobacco Regulatory Science, Volume 3, Number 3, July 2017, pp. 347-357(11) - Publisher: Tobacco Regulatory Science Group - DOI: 10.18001/TRS.3.3.10




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===[https://www.wkbn.com/news/local-news/report-warren-mom-says-teen-daughter-bought-vapes-from-man-on-snapchat/ Report: Warren mom says teen daughter bought ‘vapes’ from man on Snapchat]===


=Page Editor Instructions=
=Page Editor Instructions=