During a recent session on ‘Switching Off Illicit Cigarettes’, Rodney Van Dooren, Head of Illicit Trade Prevention Asia Pacific, Philip Morris International (PMI), has underlined the importance of securing cross border collaboration and stringent enforcement to combat tobacco black market in ASEAN region. Over the past year, governments and relevant agencies across the ASEAN region have intensified their efforts to combat cigarette black market. However, the problem remains severe, with 1 in 4 cigarettes consumed in these countries being illegal. The World Health Organisation (WHO) Framework Convention on Tobacco Control identifies India as both a transit hub and a key destination for illicit tobacco trade. One of the most pressing concerns is India’s illicit cigarette market, which accounts for nearly 26.1% of total consumption, resulting in an estimated tax revenue losses of over $2.4 billion annually.
Addressing the session, Rodney Van Dooren, Head of Illicit Trade Prevention Asia Pacific, PMI, said, “Loopholes in ASEAN fuel the illicit cigarette market, causing IPR violations, tax losses, weak enforcement, and normalized corruption. Origin countries profit, while destination countries suffer. Illicit cigarette exports in ASEAN do not match imports in consuming markets, avoiding import duties and excise taxes, leading to economic sabotage. Further, international agreements—World Trade Organisation (WTO), World Customs Organisation (WCO) and Free Trade Agreement (FTA), call for cooperation but lack legal instruments to hold parties accountable. Solving this problem does not depend on the speed of economic development between countries, but on law enforcement.
PMI’s strategy to counter illicit trade focuses on leveraging research and intelligence, securing supply chains, partnering with law enforcement, and raising public awareness”. Liyana Othman, Advocacy Director at EU-ASEAN Business Council, highlighted the importance of implementing digital tax stamp & track- and-trace systems to curb illicit cigarette trade. PMI has been at the forefront of the fight against illegal tobacco trade with a focus on five critical areas- research & intelligence, protecting supply chain, partnerships, cooperation with law enforcement and raising awareness.
