PR85534

GENEVA, September 11, 2020, /PRNewswire=KYODO JBN/--

JTI (Japan Tobacco International) has published a report, independently verified

by Intrinsic Insight Ltd., entitled 'The Gathering Storm', on how the illegal tobacco

trade are operating during the Covid-19 global pandemic and preparing to reap

the rewards in the economic aftermath that will follow.

Law enforcement agencies around the world have welcomed the report, which is

based on 63 field studies, conducted across 50 countries including Russia,

Canada, Malaysia, and the Philippines where tobacco smugglers currently have a

strong presence. JTI intelligence found that the global public health crisis

and financial downturn has created the conditions for a 'perfect storm' where

organized criminal groups will further exploit public demand for cheap goods,

and capitalize on dwindling buying power in the impending global recession,

particularly in countries with high tax regimes.

The report has provided JTI with a global picture of four emerging trends,

consistent with Euromonitor and Europol intelligence:

1.  Evidence shows that criminal groups are biding their time in readiness for

an anticipated boom in illegal tobacco sales;

2.  After initial disruption to the illegal supply chain in Western European

markets, organized criminals quickly exploited the inconsistent approach to

travel and lockdown rules and found alternative routes from production to

distribution, leading to significant seizures of illegal factories or their components

in countries such as the Czech Republic, Greece, Ireland, Belgium, and Spain;

3.  Changed law enforcement priorities and border restrictions have been mixed

in limiting supply and the availability of illegal tobacco: whilst governments

and authorities in Far East Asia were quicker to impose restrictions, those in

the West failed to act with such precision;

4.  Technology has been increasingly deployed throughout the pandemic to enable

sales of illegal tobacco to continue where strict lockdowns were put in place

by governments throughout Eastern Europe, the Middle East, Africa and Asia

Pacific, where WhatsApp and Facebook have provided quick and easy methods of

communication between the consumer and criminals. Furthermore, the

International Chamber of Commerce predicts that global counterfeit trade will

reach $4 trillion by 2022, primarily fueled by e-commerce[1].  

According to the World Bank, the global trade in illegal tobacco is already

worth an estimated $40-50 billion each year to the criminal groups who produce,

manufacture, smuggle, distribute and sell tobacco products on which there is no

tax duty paid. The loss of revenue to law-abiding retailers is also

significantly felt, as is the impact on consumers who are lured into buying

sub-standard products.

"To some consumers illegal tobacco is a victimless crime, which is why we need

to inform them not only of the hidden dangers they are consuming, but the wider

social consequences of buying from criminal groups who also traffic people and

arms. Our report, shared with over 160 Law Enforcement Agencies across the

world, is the first of its kind for intelligence gathering during the pandemic,

and we hope it will serve as a warning to governments of 'The Gathering Storm'

in the black market," said Ian Monteith, JTI's Global Anti Illicit Trade Director.

JTI have set out their plan in the report to tackle 'The Gathering Storm', calling for:

Improved enforcement at national borders;

Improved intelligence sharing through public and private partnerships between

all industries and Law Enforcement Agencies;

Exploration of fiscal measures that will allow consumer confidence to grow and

avoid the temptation to spend on illegal products;

Co-ordinated global campaigns to inform consumers through increased awareness

about the dangers of illegal tobacco and the consequences that arise through its trade.

A copy of the report can be found on jti.com.

About JTI

JTI is a leading international tobacco and vaping company with operations in

more than 130 countries. It is the global owner of both Winston, the number two

cigarette brand in the world, and Camel, outside the USA and has the largest

share in sales for both brands. Other global brands include Mevius and LD. JTI

is also a major player in the international vaping market with its brand, Logic

and tobacco vapor brand, Ploom. Headquartered in Geneva, Switzerland, JTI

employs over 44,000 people and was awarded Global Top Employer for the sixth

consecutive year. JTI is a member of the Japan Tobacco Group of Companies. For

more information, visit www.jti.com.

[1] International Chamber of Commerce. (2017, June 2). Global impacts of

counterfeiting and piracy to reach US$4.2 trillion by 2022. Retrieved from

International Chamber of Commerce:

https://iccwbo.org/media-wall/news-speeches/global-impacts-counterfeiting-piracy-reach-us4-2-trillion-2022/ 

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SOURCE: JT International