§ Mr. David NicholsonTo ask the Chancellor of the Exchequer what representations he has received regarding the retailing of imported tobacco products on which United Kingdom duty has not been paid; what estimates he has of the extent of this retailing; and what action he proposes to prevent it.
§ Sir John CopeRepresentations expressing concern over the illegal importation of tobacco products have been received from Members of Parliament, tobacco manufacturers and retailers.
There are no reliable estimates of the extent of the retailing of illegally imported tobacco products. During the eight-month period January to August, Customs and Excise recorded 464 offences involving 543,791 cigarettes, 7,565 kg of hand-rolling tobacco and 2,809 cigars obtained in other member states of the EC and alleged to be destined for illicit retail sale.
The Finance (No. 2) Act 1992 introduced new offences to meet the threat of increased smuggling of revenue goods following the completion of the single market. The offences carry penalties of up to seven years' imprisonment. Customs and Excise have also implemented new control procedures to catch and deter bootleggers, including the recruitment and training of excise verification officers for intelligence-based targeting and enhanced checks at likely outlets for smuggled goods; increasing the excise intelligence resources within the customs investigation division; increased mutual assistance with other member states, including the appointment of liaison officers to work in the Netherlands, Belgium and France; prosecuting or compounding, with, people and businesses found stocking, handling or dealing commercially in illicit excise goods.
749WCustoms and Excise will continue to review the situation in the light of experience.