Summarised by Centrist
Illicit tobacco smuggling is now a major channel for organised crime in New Zealand, with Customs warning it’s “not just a tax issue – it’s an organised crime issue.”
A Herald investigation by Neil Reid reveals that sophisticated syndicates, often also trafficking drugs and firearms, are making tens of millions by flooding the country with black-market tobacco using methods that mirror high-end drug smuggling.
“We frequently come across other serious crime types when we investigate illicit tobacco,” said Customs fraud and prohibition officer Nigel Barnes.
The operations span churches, ethnic supermarkets, internet cafes and construction sites, with Facebook Marketplace sellers avoiding detection by listing products in foreign languages.
One illegal operation alone, spanning 132 packages from Asia, cost the taxpayer $541,240 in evaded duties. In April, a Christchurch bust uncovered 740kg of illicit tobacco, an unlicensed cigarette factory, and enough manufacturing gear to suggest industrial-scale domestic production. The value of tax losses was estimated at $1.56 million.
One in four cigarettes in New Zealand is now illegal, with black market sales up 37% in 2023, according to industry research. Customs says the problem is growing, with syndicates using repeat shipments from China and the Middle East. Despite a $10.3m funding boost, officials want more powers to arrest offenders and seize assets.
“If we simply leave [offenders] in play, then there’ll be more consignments en route. We want to arrest people — and ideally seize their assets too,” Barnes told The Herald.
Editor’s note: In 2023, the Prime Minister caught flak for scrapping Labour’s heavy-handed smoking laws, with critics accusing him of siding with Big Tobacco, with Te Pāti Māori claiming it was “genocidal”.
However, Customs now confirms organised crime is already cashing in on tobacco smuggling. It’s reasonable to ask how much worse it would have been under a policy that slashed legal supply and banned sales to entire generations.
Read more over at The NZ Herald (paywalled)
