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TOBACCO TOBACCO BUSTS ‘ENCOURAGING’ BUT MORE MUST BE DONE A look at several recent illicit-tobacco busts in Australia. O n 3 March, officers from the Australian Taxation Office (ATO), the Australian Border Force (ABF) and NSW Police found 23.4 hectares of tobacco crops in Kyalite, NSW. The Illicit Tobacco Taskforce (ITTF) operation was said to have involved the seizure and destruction of more than 183 tonnes of illicit tobacco with a potential excise value of $36 million. On the same day, ATO officers and Victoria Police found 11.8 hectares of illicit tobacco crops in Beverford, Victoria as part of an ITTF operation. ATO officers are reported to have seized and destroyed 183 tonnes of illicit tobacco crops and 140kg of processed tobacco bales claimed to have a potential excise value of more than $36.3 million. The following day (4 March), the ATO and Victoria Police attended a property in Vinifera, Victoria where they found 5.2 hectares of illicit tobacco crops with a potential excise value of $12 million. ATO officers were said to have seized and destroyed 60.7 tonnes of illicit tobacco. The crops had a combined value of more than $84 million. Imperial Brands Australasia Head of H CONVENIENCE WORLD MAY/JUN, 2021 Corporate and Legal Affairs Kirsten Daggar-Nickson says the huge operation is further evidence of the sophisticated criminal syndications funnelling illicit tobacco into the Australian market. “We know illicit tobacco is a massive issue in this country, with one in five cigarettes an illegal product,” she said, citing last year’s KPMG Illicit Tobacco report. “While it is encouraging to see federal agencies destroying illicit crops, more needs to be done to deter the gangs behind the scenes." “Evaded duty on the illegal trade cost the federal government more than $3 billion last year, with the proceeds of the crime perpetuating heinous crimes, including terrorism. “While it is encouraging to see federal agencies destroying illicit crops, more needs to be done to deter the gangs behind the scenes. “More enforcement is required, and tougher penalties put in place to send a message that illicit operations won’t be tolerated.” Growing tobacco has not been legal in this country since 2006, notes Imperial Brands. However, years of continual tax increases and the introduction of plain packaging have made growing illicit tobacco increasingly lucrative. In this latest bust, says the company, the farms, on either side of the Murray River, were found disguised to look like cabbage farms. At the time Convenience World spoke to Imperial Brands, the ABF had shut down the farms and arrested several growers found on site. These seizures follow a series of other incidents. These include, says Imperial Brands, the arrest of a man after 50.3 tonnes of tobacco from an illegal tobacco crop was seized in NSW. The excise evaded was estimated at $10 million. In another case, the company adds, the criminals behind an attempt to smuggle 9.5 million cigarettes (with an estimated excise value of $7.7 million) into Western Australia from Vietnam have been sentenced to almost five years in prison. In a further case, Imperial Brands says a 55-year-old Perth man was sentenced to eight months in prison for smuggling almost 100,000 cigarettes into Fremantle, concealed inside a shipment of sofas and scented air fresheners.