GRECIA

0.6% CF GRECIA Country Profile / European Outlook 35.9% 63.5% IW NATIONAL ESTIMATE OF THE ITTP OI

Figure 1. Share of illicit cigarette Figure 3. Share of illicit products, % (2013) market out of total consumption (2013) Source: Transcrime estimates Source: KPMG 2014 4.5 0.6% 4.0 CF GRECIA 3.535.9% 0.6% GRECIA3.0 63.5% CF IW 35.9% 2.5 63.5% 2.0 17.8% IW 1.5 OI 1.0 0.5 OI 0.0 06 07 08 09 10 11 12 13 Figure 2. National volume of the ITTP, Figure 4. Share of illicit products, % billion sticks (2006–2013) (2006–2013) Source: KPMG 2014 Source:4.5 Transcrime estimates 100%4.0 4.5 3.5 4.0 3.080% CF 3.5 2.5 3.0 2.060% 2.5 1.5 IW 2.0 1.040% 1.5 0.5 0.0 1.0 20% OI 06 07 08 09 10 11 12 13 0.5 0.0 0% 06 07 08 09 10 11 12 13 06 07 08 09 10 11 12 13

100%

THE LEGAL TOBACCO MARKET THE80% PREVALENCE OF ILLICIT CIGARETTESCF (2013) COUNTRY DATA 100% 80% CF 60% MARKET SIZE | 2013 Map 1. Prevalence and share of illicit IWproducts by area (2013) 60% Source:40% Transcrime estimates Capital City Legal sales of genuine GERIW GRE domestic40% products (billion sticks) 20% OI Source: KPMG 2014 20% OI 0% Surface (WB 2014) 06 07 08 09 10 11 12 13 0% East Macedonia 131,960 km² 06 07 08 09 10 11 12 13 and Thrace 18.5 West Total population (WB 2014) Macedonia 11,032,328 (2013) SMOKERS | 2011 Borders Current smoking of any tobacco Albania, Bulgaria, FYROM, product (age standardised rate) North Aegean Turkey Source: WHO 2014 Thessaly Epirus Gross Domestic Product, € (Eurostat 2014) 40.0% Central Greece 182.1 billion (2013) PRICE | 2013 Ionian

West Price of a pack of the most Greece sold brand in € Source: European Commission 2013a South Aegean 3.8 Peloponnese

TAXATION | 2013 Tax as % of the final retail price of the most sold brand Source: European Commission 2013a Crete Prevalence, million sticks per 100,000 inhabitants Stone bridge, Aoos river 84.4% 15 35 50 Tax per 1,000 sticks in € of the most sold brand Source: European Commission 2013a Share of illicit products, %

CF IW OI

153.5 Non-estimated areas MAL 150 150 151 THE SIZE OF THE ILLICIT CIGARETTE MARKET THE PRODUCTS VOLUMES AND SEIZURES THE FLOWS

Greece had a high level of the ITTP in In 2013, illicit whites were the most Greece is a mainly a transit point, and Serbia 2013, when illicit cigarettes accounted common type of illicit cigarettes (63.5% secondly a starting and ending point, for for 17.8% of the national market (KPMG of the illicit market) (Figure 3). Their Montenegro the ITTP. 2014) (Figure 1). share ranged from 29.8% (South Aegean) to 69.9% (Crete), exceeding 50% in 10 out Kosovo Considering the illicit flows recorded In 2013, 7 out of 13 Greek areas had a of 13 areas (Map 1). Nationally, the share Bulgaria between 2010 and 2013, Greece is medium low level of the ITTP in terms of of illicit whites was particularly high in primarily a transit point for smuggled volume (Map 2). The level of the ITTP was 2008 and 2009, it then decreased in 2010, cigarettes (Figure 6). The 70–75% of illicit very high in Attica (1,753 million sticks) and to rise again between 2011 and 2013. The Orestiada products arriving in Greece are intended in Central Macedonia (745 million sticks). growing trend followed by illicit whites for other countries (Hellenic Police 2013; Together, these two areas made up 63% of between 2010 and 2013 corresponded FYROM KEPE 2013). Chinese companies use the Greek illicit tobacco market. All of the to a decrease in the share of both other Greece as the last storage point before Serres Drama other Greek areas had a medium-low or illicit tobacco products and counterfeits East Macedonia smuggling cigarettes in the EU (DNA and Thrace medium-high volume of the ITTP (Map 2). (Figure 4). Kordelio-Evosmos 2011). Illicit products transiting through Pella Greece come mainly from China, Egypt, Attica also had the highest prevalence of In 2013, the second most important Albania United Arab Emirates and Cyprus. Once illicit cigarettes (52.2 million sticks per illicit tobacco product was other Panorama in Greece, they are mainly distributed 100,000 inhabitants). East Macedonia and illicit cigarettes (35.9% of the illicit West to Italy, the Netherlands, Germany, Thrace, Central Macedonia, and Crete market) (Figure 3). South Aegean, West Macedonia Belgium, Bulgaria, the UK, Montenegro, were other areas with a relatively high Macedonia, East Macedonia and Thrace Tempe FYROM and other Eastern European prevalence of illicit cigarettes (50.8, were the areas with the highest shares countries (e.g. Bulgaria). Larissa 46.0 and 44.6 respectively). Southern with a percentage of, respectively, 70.2%, Igoumenitsa Central Macedonia areas of West Greece (16.0), Peloponnese 61.6% and 60.9%. Central Greece (30.7%) Greece also has a role as a starting (16.5) and South Aegean (17.5) presented and Crete (30.1%), the areas with the point. Cigarettes are mainly exported Epirus Thessaly the lowest prevalence of illicit tobacco highest prevalences of the ITTP, had the Aegean to Germany, Italy, the Netherlands and Sea consumption (Map 1). lowest ones (Map 1). Turkey the UK, where criminals benefit from a North Aegean higher price differential (Figure 7). Greece Between 2012 and 2013, the prevalence The third type of illicit cigarettes is additionally a producer of illicit withes of illicit cigarettes increased in 11 out of was counterfeits (0.6% of the illicit Central Chalcis manufactured in Kalamata (Peloponnese) 13 areas Greece (Figure 5). The most remarkable market) (Figure 3). Attica (1.2%), Central Cephalonia Patras and illegally exported mainly to France increases occurred in Crete (+258%) and Macedonia (0.5%) and North Aegean and Spain (KPMG 2014). Following the Thessaly (+104%). The only exceptions were (0.2%) were the only two areas where Attica riseof cigarette unit prices in 2010, South Aegean and West Macedonia, which the consumption of counterfeits was Ionian Islands Athens Greece also became an ending point recorded a decrease of -53% and -4%. observed (Map 1). West Salamis market (Antonopoulos 2013; Euromonitor Greece International 2013k; Hellenic Police Figure 5. 2012–2013 comparison of illicit prevalence by area, million sticks per 100,000 inhabitants 2013). Illicit tobacco products come Source: Transcrime estimates South Aegean mainly from Bulgaria, Turkey and other Ionian Peloponnese Balkan countries (i.e. FYROM, Kosovo, Sea West Macedonia 2013 Gytheio Moldova, Serbia), where cigarette prices are significantly lower (Figure 8). Greece West Greece 2012 is also an ending point market for illicit Thessaly whites produced in Cyprus (KPMG 2014). South Aegean Illicit products are smuggled in, Peloponnese through, or from Greece by water and motor vehicle. The vast majority of North Aegean N/A VOLUMES OF THE ITTP Chania seizures have occurred in the ports BY AREA 2013 CIGARETTES SEIZED 2013 Ionian Islands Heraklion of Igoumenitsa, Patras, Piraeus and Thessaloniki. Cigarettes arrive in Greece Epirus Million Sticks Million Sticks in large shipments originating from East Macedonia and Thrace Low [0; 20] Low [<0.1] Crete China, Egypt, Singapore and United Medium low (20; 160] Arab Emirates (see also Hellenic Police Crete Medium low (0.1; 1] Medium high (160; 440] 2013). Once in Greece, cigarettes are Central Macedonia Medium (1; 5] transferred to motor vehicles either on High (440; 720] Medium high (5; 50] ferries/motorboats or via inland routes Central Greece Map 2. Very high (720; 1760] (Stamatakis 2013; Tsiadis 2013). High (>50] Attica Non-estimated areas Sources Volume of the ITTP: Transcrime estimates Cigarettes seized: Transcrime elaboration (details in the Annex) 0 10 20 30 40 50 60

152 153 THE FLOWS Figure 6. Greece as transit point (2010–2013).* N= 31

STARTING POINT TRANSIT POINT ENDING POINT

BELGIUM

BULGARIA CHINA FYROM

CYPRUS GERMANY CE

EGYPT ITALY GRE E MONTENEGRO UNITED ARAB EMIRATES NETHERLANDS

UK

Figure 7. Greece as starting point (2010–2013).* N= 22

STARTING POINT TRANSIT POINT ENDING POINT

FRANCE

BULGARIA FRANCE GERMANY

CE GERMANY ITALY ITALY GRE E NETHERLANDS

SPAIN

UK Figure 8. Greece as ending point (2010–2013).* N= 17

STARTING POINT TRANSIT POINT ENDING POINT

BULGARIA BULGARIA CYPRUS FYROM *The thickness of FYROM each line indicates CE the number of KOSOVO cases reported MOLDOVA Source: Transcrime elaboration GRE E RUSSIA (details in the Annex) SERBIA TURKEY UKRAINE

154 155 ACTORS AND MODUS OPERANDI INSIDE THE DATA

Between 2010 and 2013 Greek Customs engaged in the supply chain of tobacco Evolution of the ITTP from 2006 GER Map 3. Prevalence of the ITTP by area, million sticks per 100,000 inhabitantsGRE (2006–2013) Figure 9. Cigarettes seized in Greece, million and newspapers reported 259 tobacco products to maintain complete and accurate Source: Transcrime estimates sticks (2008–2013)*** seizures involving 603 persons, mainly records of all relevant transactions. There to 2013 Source: Transcrime elaboration (details in the Annex) Greeks (25%), Pakistanis (22%) and is also a national legal provision on a 26 2006 Bulgarians (9%). Criminal organisations tracking and tracing system. However, a Volumes and prevalence 800 2007 from Russia, Ukraine and Albania were also publication by the Minister of Finance on 2008 700 involved in the ITTP (Antonopoulos 2003; implementing technical and operational Between 2006 and 2013, the 2009 600 national ITTP increased by 223% 2010 MPO 2005; Antonopoulos 2007a; Gounev specifications is still necessary for s 500 k

2011 c i

in volume and by 226% in terms of t

and Bezlov 2010). No specific profile of implementing this system. s 2012 400 n o i the tobacco smugglers exists. They may prevalence (Figure 2 and Map 3). l 2013 l

i 300

Non-estimated m have been either individual bootleggers, areas 200 small groups or large-scale smugglers Attica showed the largest LAW ENFORCEMENT 100 (Antonopoulos 2006; 2007a; 2007b). volume of the ITTP for the 0 entire 2006–2013 period with an 08 09 10 11 12 13

Tobacco was transported to Greece The main bodies involved in the fight average yearly consumption of *** 2009 data are missing mainly by container (21%), inside trucks against the ITTP in Greece are the 893 million cigarettes. This value or cars aboard ships (21%), inside Greek Customs (Ελληνικά Τελωνεία), the was almost six times the national ships (10%), and in smaller boats.** SDOE-Financial and Economic Crime average yearly consumption (157 Ships with illicit tobacco either remain Unit Research (Σώμα Δίωξης Οικονομικού million cigarettes). The trend in in international waters and downloaded Εγκλήματος), the Hellenic Coast Guard consumption in Attica and in Central MAIN RECOMMENDATIONS tobacco in smaller vessels, or dropped (Λιμενικό Σώμα-Ελληνική Ακτοφυλακή), and the Macedonia drove the overall national tobacco to trucks waiting on the coastline Hellenic Police (Ελληνική Αστυνομία). level of the ITTP. Those areas - Increasing international cooperation (Tsiadis 2013). Once downloaded from absorbed 63% of the country’s ITTP and exchanging data with EU and non- ships, tobacco was transported by car and After a significant increase between 2008 on average each year. EU law enforcement agencies in order truck (respectively 19%). Tobacco was also and 2011 (2009 data are missing), the to reduce the inflows and outflows of seized in private houses and warehouses quantity of cigarettes seized in Greece Attica, which comprises the capital illicit tobacco. (24%), as well as in open air markets and decreased from 2012 (Figure 9). About Athens, together with the areas A focus on Athens streets (10%). 56 million sticks were seized in 2008, along the northern border — West - Strengthening controls in the Greek Macedonia, Central Macedonia, East but the number increased markedly in The prevalence of non-domestic Among the collection points, the ports of Igoumenitsa, Patras, Piraeus Macedonia and Thrace — were the In 2010, three illicit manufacturing 2010 and in 2011 (544 and 744 million cigarettes increased in Athens average increase was +539%. and Thessaloniki, to reduce illicit facilities were raided in Greece — in sticks respectively). This increase could be areas with the highest prevalences collection points between 2009 and 2013 inflows mainly from Asia and Middle of illicit cigarettes for the whole particular, in Menidi and Thessaloniki explained by the significant investments (Map 4). This increase may have been This intensification concentrated in East. period under study (Map 3). (PMI 2013b). Greece is also a producer of made in 2011 by the Greek government connected to the socio-economic crisis areas where the illicit market was illicit whites (KPMG 2014). to combat the ITTP (Onisenko 2012). affecting Greece, which may have boosted null or almost inexistent in 2009, - Strengthening the control over the Seizures decreased by 39% in 2012 the consumption of illicit cigarettes. such as Kykladon-Agiou Meletiou, inflow of tobacco raw components, in ** Between 2010 and 2013, 884.6 million cigarettes Types of illicit cigarettes (456 million sticks) and by 1% in 2013, Lymperopoulou-Triantafylidi (+1,800%) order to dismantle illicit manufacturing were seized in 32 containers (quantity per seizure: reaching 450 million sticks (Map 2). 27.6 million); 121.7 million cigarettes were seized in 23 or Kalipoleos-Ioanniton (+1,659%). facilities and curb the local production Map 4. Prevalence of non-domestics in the trucks (quantity per seizure: 5.3 million); and 132,700 in The types of illicit cigarettes of illicit cigarettes. 6 cars aboard ships (quantity per seizure: 22,120). significantly changed after 2006. Athens’ collection areas (2009 and 2013) Conversely, areas already affected Other illicit cigarettes were the Source: Transcrime elaboration (details in the Annex) Top three seizures in 2013 by the phenomenon registered - Promoting security preventive measures most common illicit product in 2006 less pronounced increases (e.g. for all persons engaged in the tobacco REGULATION (47.2%), 2007 (58.4%), and 2010 A total of 37.2 million cigarettes were Paramythias-Salaminos (+153%) or supply chain, especially by monitoring (51.1%). In 2010 and thereafter, their seized in the port of Piraeus in September. Xalepa-Synodinou (+160%)). the balance between the demand and share progressively diminished in The Greek Government has adopted Officers of the Narcotics Division of the the supply of tobacco in oder to reduce favour of illicit whites. Illicit whites several measures against the ITTP. Two SDOE found illicit cigarettes in three With respect to 2013, Athinaidos- the presence of illicit whites. constituted the most common awareness campaigns against the ITTP containers arriving from Singapore. Karori (41.3%) and Kykladon-Agiou type of illicit cigarette in 2008 have recently been promoted, and there Meletiou (39.4%) registered the highest - Providing yearly data on convictions and thereafter, when their share is an explicit legal duty to destroy all A total of 32.9 million cigarettes and 540 prevalence of non-domestics. for the ITTP and on the possible reached the record of 78.8% of the confiscated cigarettes. Official estimates packs of tobacco were seized in Athens membership of organised crime groups. illicit market, with the sole exception of the size of the ITTP and limited public in December and in April. The cigarettes of 2010. Counterfeits maintained a data (not for every year and related only to were destined for Italy. Six Greeks, one relatively stable share (around 16% the Hellenic Coast Guard) both on tobacco Bulgarian and two unidentified persons of the illicit market) until 2013, when seizures and convictions for the ITTP are organised the smuggling. they dropped sharply to 0.6% of the also published by KEPE (Greek Centre of illicit cigarette market (Figure 4). Planning and Economic Research). A total of 19.2 million cigarettes were seized in Piraeus in November. SDOE Control of the legal supply chain is officers identified the contraband adequately guaranteed through the cargo in two containers originating licensing system for some tobacco activities from Singapore and Vietnam. and the requirement for all persons

156 157