Seizure Enforcement Date Place Value Source Agency (Rs. Lakhs) Sharp Growth in Illegal Cigarette Trade December 1, 2017 Kochi 2.18 Customs News Today in India Due to Extreme Regulations & November 22, 2017 Guwahati 4 Railway Police Excessive Taxation on Cigarettes November 18, 2017 Vijayawada 525 DRI

October 28, 2017 Mumbai 690 DRI The Hindu THE TOBACCO INSTITUTE OF INDIA Banswara, September 1, 2017 136 DRI Rajasthan The Tobacco Institute of India (TII) is a representative body of farmers, manufacturers, exporters and ancillaries of the cigarette segment August 15, 2017 Hyderabad 19 Police The Hindu of the tobacco industry in India. The Institute is recognized as a repository of reliable information on the industry and is privileged to

August 3, 2017 Vadodara 0.89 Crime Branch DCB seizes cigarette stock, two booked TN N | Feb 9, 2018 Vadodara: The detection of crime branch (DCB) has seized a big stock of cigarettes be consulted by Government, Parliamentary Committees, Chambers and booked two persons.

The police said that the accused had stocked and were selling cigarette packets that didn't carry the mandatory health June 23, 2017 Varanasi 30 DRI The Times of India of Commerce/Trade Associations and Media for information and hazard warning. According to the police, ecific intelligence input, a Directorate of Mahesh Agrawal, who owns a shop near the railway station, was selling these cigarette packets. H e was selling imported cigarette brands made in Indonesia,

policy recommendations on Tobacco issues. Chinese and KoreanPATNA: Acting manufactured on a sp smuggled Switzerland, USA and Korea. They seized Revenue Intelligence (DRI) team of Patna along with the Railway cigarette packets worth Rs 24,850. The cigarette seized inProtection Patna Force (RPF) personnel seized a consignment of foreignaccused didn't have bill of the stock. June 8, 2017 Guwahati 40 Police TNN | Jan 13, 2018 manufactured cigarette smuggled into India at Patliputra junction on Saturday. Another shop owned by Girish Bharwani on Rajmahal Road was also selling suc consignment was being smuggled to New Delhi from Guwahatibranded cigarette packets without the mandatory warning sign. He too has been As an organization, TII has always supported evidence-based, The booked by the cops. h inside the parcel van of North East Express which was intercepted as soon as the train reached the junction Source: on Saturday morning. No one was https://timesofindia.indiatimes.com/city/vadodara/dcb two-booked/articleshow/62842178.cms arrested by DRI in connection with -seizes- cigarette-stock- May 26, 2017 50.40 DRI equitable, reasonable and implementable regulation and recognises Santacruz man arrested for smuggling

me of Ram Kumar was Rs 6cr cigarettes N | Jan 3, 2018 the need to create greater awareness regarding tobacco consumption the smuggling.ces said that the smuggled consignment was worth at S Ahmed Ali| TN

DRI sour zed from the parcel van along with MUMBAI: The Directorate Revenue of Intelligence (DRI) least Rs 65 lakh in the open market. They also said that the They said that the arrested a Santacruz resident on Monday for smuggling May 21, 2017 Nashik 13.34 Police The Times of India cigarettes were manufactured in China and South Korea. consignment was first cigarettes worth Rs 6.2 crore. Vakola resident Kishore legally imported in in India. "More than 2.87 lakh cigarette sticks manufactured in South border in Myanmar after which it was Mevada was arrested at the Ahmedabad Airport when he Korea in 18 cartons were sei destination. DRI smuggled into India from 59,800 sticks of another brand manufactured in China," sources was about to board a flight to a foreign international said. Manipur and was brought officials said that they had issued a lookout circular as

to Guwahati. Mevada was not responding to its summons asking him They also said that the consignment was booked by one Raghvendra Kumar Gupta of Paltan

May 15, 2017 Margao, 1.61 Police The Navhind Times Bazaar in Guwahati on Friday. "One cellphone number along with na "The import duty on written on the consignment which was to be delivered at Anand Vihar terminal in New Delhi," DRI to be available for investigation. cigarette in Myanmar is sources said. mere 6% of the price of the Rs 6 lakh foreign cigarettes confiscated - Times of India manufacturedIn November, the DRI raidedPage a 1flat of in1 Vardhaman Residency and a godown in consignment while in India, Bhiwandi and recovered 481 cartons of Gudang Garam brand cigarettes worth Rs import duty on cigarette is DFCO seizes tobacco products worth Rs 2 lakh 6.2 crore. Each carton contained 60 packets of cigarettes The DRI had detained the uman Karniya,‘Non branded who cigarettestold the more officials hazardous’ that he had rented the Indonesian cigarettes worth Rs 9 crore seized owner of the godown, K Srinagar, Publish Date: Dec 22 2017 May 12, 2017 Margao, Goa 1 Police The Times of India said space to Mevada, who had toldIn hima special he drivewas started into today,import drug and and foodexport control business. department (DFCO) seized a -manufactured- Printed from stock of cigarettes that were in contravention to tobacco laws. in Chennai korean The DRI also questioned the Vardhaman Residency flat owner, Somchand , 2018 -and- Officials said the tedseized out stock his washouse to Mevada to store Siddharth Prabhakar | TNN | Feb 2 Zakhariya, who too told officials thatworth he over had Rs ren2 lakh from shopkeepers Rs 6 lakh foreign cigarettes confiscatedgoods and was not aware that here.the latter was into smuggling. Officials also CHENNAI: Customs officials at Chennai port have seized 70.56 lakh of Indonesian cigarettes, On Thursday, food safety officer TNN | Dec 20, 2017, 01.46 PM IST questioned Mevada's employees Saroj Dukkhi and Raju Chavan, who would worth Rs 9 crore. Srinagar inspected various areas of Canacona, gnment of allegedly transport the smuggled cigarettesSrinagar city and and deliver found themsome to shops. MAPUSA: In multiple raids conducted in the coastal areas of Bardez and shopkeepers selling and supplying a whopping 64%. It is due to this reasonpatna/articleshow/62487561.cms that smugglers prefer importing foreign April 11, 2017 2.5 Police The Times of India An official release said Chennai Customs, Sea Port, had recently intercepted a consi in- Pernem, 2,300 foreign cigarette packetsImport worth of cigarettes Rs 6 lakhs waswithout seized statutory on cigarettes warning without carryingprinted mandatory on the packets is banned in nine containers declared as cigarettegypsum first powder to Myanmar and then smuggle into Indian border," DRI sources said. They said that health warning. seized- Representational Pic imported by M/s Kisan Exports,the Dindigul.seized cigarettes The are - of lower quality thanMonday. their Indian competitors but sell at reasonablyIndia. Cigarettesgood that carry the statutory warning can be imported after paying a Goa price in open https://timesofindia.indiatimes.com/city/patna/chinese market. “Huge stock cigarettes contravening section 7 of the Act was seized during two days -cigarette 160% Customs duty. Investigationsof the revealeddrive. The value that of theMevada stock was puthad at Rsbeen 220325. smuggling Till date prosecutions consignment, originated from Iran, was loaded r. He was introduced to the business by his childhood friend, one Source: Officials of the legal metrology department,cigarettes North for Zone, a yea food and drugs against 20 food business operators had been launched in this regard in the at Jebel Ali Port, UAE. smuggled competent court,” administration (FDA) and commercialJayesh tax conducted Patel. a raid at Morjim, -for- Sale and manufacture of tobacco products without-man pictorial-arrested health warning is Agarwada and seized around 1,300 foreign cigarette packets worth Rs 3 es.com/city/mumbai/santacruz On examination of the consignment, 490 Source: https://timesofindia.indiatimpunishable offence with an imprisonment up to six months. lakh from supermarkets and cigarette sellers.Similar raidscigarettes/articleshow/62344340.cms were also brown cartons covered with white smuggling-rs-6cr- DFCO has warned that food business operators to desist from such kind of April 3, 2017 Assam 428 Customs The Assam Tribune conducted at Baga, Calangute and Mapusa in which around 1,000 foreignmalpractice. “Otherwise action as warranted under provisions of Cigarettes & other polypropylene sack were found concealed tobacco products Act will be taken.” cigarettes worth Rs 3 lakh were confiscated. along with the gypsum powder bags (Gypol An official in the department said public needs to understand that non branded cigarettes contain formaldehyde which immediately supplies nicotine to Brand). When the cartons were opened, sixty brain but is very harmful to health. “It (formaldehyde) is used to preserve dead boxes of cigarettes, each containing 20 packs DRI seizes foreign cigarettes 12,bodies. 2018 It is wortha health hazard,” Rs the official 60 said. lakh January Source:http://www.greaterkashmir.com/news/srinagar-city/dfco-seizes-tobacco-products- with the brand name "Gudang Garam from Guntur India | Hyderabad Trust of worth-2-lakh/269719.html March 19, 2017 Coimbatore 10.38 Customs The Times of India International" of Indonesia, were found. In Press The Directorate of Revenue Intelligence seized foreign cigarettes-made worth cigarettes, Rs 60 lakh total, 70.56 lakh cigarette sticks were from a godown in Guntur, officials said. nce (DRI), Vijayawada, visited and

recovered. They were seized under the provisions of the Customs Act 1962. "Based on specific intelligence relating to smuggling of foreign tisement and Regulation of States officers of the Directorate of Revenue Intellige ment or legal As per the Cigarettes and other Tobacco Products (Prohibition of Adver verified a transport godown in Guntur on January 11," a DRI release said here. Posted at: Dec 11 2017 9:45PM March 17, 2017 Coimbatore 38.65 Customs The Times of India Trade and Commerce, Production, Supply and Distribution Act, 2003 (COTPA 2003) , cigarette The DRI release added that the consignment was not covered by any GST (Goods packets shall have health warning to cover 85% of the principal display area of the package (60% Rsll 15cover lakh textual worth health warning).smuggled The seized goods cigarette seized at Goa Intl and Services Tax) invoice or Customs documents showing duty pay shall cover pictorial warning and 25% sha import into India. packets were found to be printed with statutoryAirport, warnings 2 held in English and Arabic, covering less than

Goa Customs on Monday seized gold, saffron and cigarettes worth The foreign cigarettes were seized under provisions of the Customs Act, 1962, the 50% display area of the package. Dec 12 (UNI) address of the March 5, 2017 Noida 1,500 DRI The Times of India Panaji, DRI stated. -made cigarettes in investigation.the consignment were handed around Rs 15 lakh from two passengers hailing from Kasargod in Kerala. - As per Legal Metrology (Packaged Commodity) Rules 2011, the name and cigarettes Officials added that the Indian -foreign- manufacturer/importer or packer, quantity of the product, month and year of manufacturing and -seizes Speaking to reporters, G B Santimano,nection with Additionalthe crime. Commissioner, Goa, said two over to Guntur GST Commissionerate for further -stories/dri

retail sale price are mandatory. However,passengers the same were were not arrested found inprinted con on the seized cigarette -standard.com/article/pti packets. http://www.business-118011201153_1.html Source: -from-guntur -60-lakh Goldade worth up of Rs crushed 11 lakh, clove, 4.3 lakhclove worth oil and Saffron tobacco, and 50which cigarette cartons were the articles worth-rs January 31, 2017 Mumbai 220 DRI Times 'Gudang Garam' brand of cigarettes are seizedm by the customs officials from the two passengers one of whom had come from give the cigarettes a unique clove flavour and are popular among youth. Since the pictorial Dubai on Oman Airlines. warnings on the pack is less than the mandatory 85%, the smoker believe thate theysaid. are smoking much safer cigarettes than Indian cigarettes,Further according investigation to customs was officials.underway, h crore- -cigarettes-worth-rs-9- -at-goa-intl- -goods-seized Source: https://timesofindia.indiatimes.com/city/chennai/indonesianUNI AKM SB 2145 -smuggled -15-lakh-worth January 4, 2017 Chandigarh - Police The Indian Express -chennai/articleshow/62754907.cms seized-in http://www.uniindia.com/rs Source: -2-held/states/news/1073843.html airport

For more information, visit us at www.tiionline.org March 2018

https://timesofindia.indiatimes.com/city/goa/rs-6l-foreign-cigarettes-confiscated/articl... 21-12-2017  High and discriminatory Cigarette taxation and extreme tobacco control  Illegal cigarettes are sold cheap due to tax evasion affording a huge arbitrage Illegal Cigarette Seizures by Enforcement Agencies regulations such as the 85% Pictorial Warning on Tobacco Product Packs in opportunity. Availability of these products spreads across urban as well as As reported by Media since January 2017 India have led to the decline of Legal Cigarettes in the country while Illegal rural markets – in metros they are almost universally available. Seizure Cigarette trade has grown significantly. Enforcement  Date Place Value Source According to Euromonitor International, illegal cigarettes have more than Agency (Rs. Lakhs)  Both high taxation on Cigarettes and extreme regulations produce counter- doubled since 2004, making India the 4th largest illegal cigarette market in the productive results. They do not reduce demand, but merely shift the demand world. March 19, 2018 Kolkata 5 Customs

from the Legal tax-paid and regulation-compliant products to Illegal tax- March 10, 2018 Pune 4.6 Police Times evaded and regulation non-compliant products. Illegal Cigarette Volumes (Billion Sticks) 24.9 February 21, 2018 Bengaluru 4 Airport Officials The Indian Express 22.8  According to a study by IMRB (Indian Market Research Bureau), since the 20.8 18.3 Directorate 16.7 implementation of 85% Pictorial Warning in India in April 2016, consumers 13.5 February 13, 2018 Ahmedabad 144 of Revenue The Indian Express have begun to demonstrate a noticeable preference for smuggled cigarettes 11.1 Intelligence (DRI) without the prescribed warnings. February 9, 2018 Vadodara 0.25 Crime Branch The Times of India

 High and discriminatory taxation on cigarettes over the years particularly 2004 2006 2008 2010 2012 2014 2016 February 2, 2018 Chennai 900 Customs The Times of India the past 6 years, has impacted the legal cigarette industry and provided a Source: Euromonitor International, 2017 January 27, 2018 Coimbatore - Customs Daily Thanthi huge fillip to the illegal cigarette trade in the country. DRI and Railway  January 13, 2018 Patna 65 The Times of India Growth in illegal cigarette trade has many serious consequences: Protection Force Sharp Growth in Illegal Cigarette Trade Index - Results in revenue loss of more than Rs. 13,000 crores to the national 128 January 12, 2018 Guntur 60 DRI Business Standard %

8 exchequer

2011 2016 + 2 January 6, 2018 Kolkata 16 Customs The Telegraph 100 100 - Aids the prevalence of organized criminal syndicates that control illegal trade in cigarettes January 3, 2018 Mumbai 620 DRI The Times of India

74 - 26 % - Undermines the tobacco control policies of the government by not Drug and adhering to tobacco regulations December 22, 2017 Srinagar 2 Food Control Legal Cigarettes Illegal Cigarettes Department - Adversely impacts the demand for domestic tobaccos since contraband Mapusa, Source: Cigarette Industry Factory Shipments; Euromonitor International products do not use locally grown tobaccos December 20, 2017 6 Legal Metrology The Times of India Goa   The Goods and Services Tax (GST) regime introduced in July 2017, has further As per the information contained in Government Replies to Questions in December 16, 2017 Hyderabad 65.96 DRI Business Standard increased the tax burden on Cigarettes by increasing the GST Compensation Parliament, incidents of seizures of smuggled cigarettes across India have United News of December 12, 2017 Panaji 15 Customs Cess rates by a weighted average of about 13% over the pre-GST tax rates. more than doubled to 3,108 in 2016-17 from 1,312 incidents in 2014-15. India

 The cumulative growth in the rate of tax on cigarettes, including the increase  The reported seizures are only the tip of the iceberg of a much larger operation, December 3, 2017 Hyderabad 633 DRI in rates of GST Cess, is a staggering 202% since 2011-12. as for every seizure dozens of consignments escape any surveillance.