The smuggling of contraband and counterfeit cigarettes creates losses in revenue to the Europe Union of up to $12 Billion (10 Billion Euros).

Contraband cigarettes are legitimate cigarettes that have been smuggled into the country without the payment of taxes. Counterfeit cigarettes are fake cigarettes where no money is paid in taxes or the a legitimate business.

Source:  Associated Press, “EU, BAT cooperate against illegal cigarette trade,” Google News, July 15, 2010.

The Royal Canadian Mounted Police seized 975,000 cartons of illegal cigarettes across the country in 2009, up from 965,000 in 2008.

Source:  Associated Press, “Feds move against contraband tobacco,” CBC News, May 28, 2010.

In 2009, Custom officials in the Netherlands confiscated 209 million cigarettes worth 36.3 Million Euros from entering the country. The figure is up from the 204 million seized in 2008.

Source: “Dutch clampdown on cigarette smuggling,” Radio Netherlands, May 27, 2010.

The South African Government losses up to $135 Million (1 Billion South African Rand) in tax revenue to cigarette smuggling activities each year.

Source:  Florence de Vries, “Illicit tobacco trade costs SA R1bn a year, hits producers,” Business Report, April 30, 2010.

Between 44 to 50 million contraband cigarettes are smuggled into and distributed within Jamaica each year.

Source:  Alicia Roache, “Drug lords turn to cigarettes.” Jamaica Observer, April 25, 2010.

According to a study by Physicians for a Smoke Free Canada, sales of contraband cigarettes in 1985 were 0. By 1993, 14.5 Billion contraband cigarettes were sold that year.

Source:  Bloomberg, “R.J. Reynolds Agrees to Pay Canada C$325 Million,” BusinessWeek, April 13, 2010.

In the State of New York, $1 Billion in tax revenue is lost to cigarette smuggling activities.

Source:  Nanette Byrnes, “How Altria Is Winnowing Out Fake Marlboros,” BusinessWeek, April 8, 2010.

According to an official with the US Bureau of Alcohol, Tobacco and Firearms, a passenger car filled with cigarettes purchased in low tax state of Virginia  and driven to New York and re-sold can generate up to $30,000 in profits.

If an entire truck is used, the profits may reach as high as $2 Million.

Source:  Nanette Byrnes, “How Altria Is Winnowing Out Fake Marlboros,” BusinessWeek, April 8, 2010.

Taiwan loses up to $156 Million (5 Billion Taiwan Dollars) in lost taxes due to cigarette smuggling activities.

The Taiwan Tobacco and Liquor Corporation states that almost 10 percent of the cigarette market in Taiwan consists of smuggled cigarettes.

Source:  “New way of cigarette smuggling discovered,” The China Post, March 9, 2010.

In 2009, Customs Agents in Ireland seized about 200 million cigarettes attempting to be smuggled into the country.  In previous years, Customs seized 135 million in 2008, 74 million in 2007, and 52 million in 2006.

One out of every four cigarettes sold in Ireland is believed to have been smuggled into the country.

Source:  Paul Cullen, “Tobacco smuggling ‘now epidemic’,” Irish Times, February 17, 2010.