Progress report on the implementation of the Communication ‘Stepping up the fight against cigarette smuggling and other forms of illicit trade in tobacco products – a comprehensive EU strategy’

Cigarette smuggling has been a major concern in Europe for some time. The illicit tobacco trade makes cigarettes available at prices lower than those set to discourage smoking. At the same time, illicit products typically do not comply with product regulation, such as labelling. The illicit tobacco trade also causes considerable losses to public revenue: if all cigarettes sold on the black market were sold legally, the budget of the EU and its Member States would receive above €10 billion annually. Last but not least, cigarette smuggling is a source of revenue for organised criminal groups from Europe and beyond, and there are indications that in some instances it is also linked to financing terrorism. Fighting the illicit tobacco trade is therefore also key to protecting the security of the EU.

In June 2013, the Commission presented a comprehensive strategy to step up the fight against the illicit tobacco trade. Based on a detailed analysis of the phenomenon of smuggling in the EU and the factors driving it, the strategy proposed ways to counter the illicit tobacco trade, building on an earlier action plan to fight the smuggling of cigarettes and alcohol along the EU’s eastern border. The 2013 strategy was accompanied by a new action plan with 50 items to be implemented by the Commission and/or Member States.

This report fulfils a commitment by the Commission to monitor implementation of the strategy and the action plan, with special regard to the specific factors driving the problem. The report offers an overview of the main initiatives taken since the presentation of the 2013 strategy, briefly describes the current situation with the illicit market, discusses lessons learned and makes some suggestions for further reflection.