Pat Breen (Clare, Fine Gael)
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Question 230: To ask the Minister for Finance his plans to combat the sale of illicit cigarettes here; his further plans to tackle same on an EU wide basis; and if he will make a statement on the matter. [30564/09]

Pat Breen (Clare, Fine Gael)
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Question 231: To ask the Minister for Finance the number of seizures of illegal cigarettes here for the past three years; the value of those seizures; the point of entry where the seizures were made; and if he will make a statement on the matter. [30565/09]

Seán Barrett (Dún Laoghaire, Fine Gael)
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Question 240: To ask the Minister for Finance the steps he will take to address the illegal market in tobacco products that is costing the State €387 million per annum in lost revenue, and retailers €496 million in lost sales turnover, while undermining the efforts of small retail businesses to provide employment and retail services to local communities; and if he will make a statement on the matter. [30160/09]

Thomas Byrne (Meath East, Fianna Fail)
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Question 243: To ask the Minister for Finance if his attention has been drawn to a problem regarding the importation of cigarettes; his views on whether this is a significant drain on revenue here; the action he will take in relation to same; and if he will make a statement on the matter. [30319/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 230, 231, 240 and 243 together.

I am informed by the Revenue Commissioners, who are responsible for the collection of tobacco products tax and tackling the illicit trade in cigarettes and tobacco products, that the information requested by the Deputies is as follows. Revenue's current strategy for tackling this illicit trade is focussed both on intercepting and seizing illicit consignments at the point of importation and also on carrying out checks at retail outlets, markets and commercial premises etc.

Interception at the point of importation is achieved through a combination of freight intelligence, risk profiling and scanning in the case of smuggling in maritime freight. In the case of passengers arriving by air from high risk source countries where cheap cigarettes are available, targeting smugglers is carried out on the basis of risk profiling by Revenue Officers based at all the main airports. Where feasible, large consignments are placed under surveillance and allowed to proceed to their destination under a controlled delivery with a view to identifying those responsible for the importation. These controlled delivery operations are normally carried out on a multi-agency basis with the assistance of the Garda.

Illicit cigarettes that escape detection at the point of importation are also seized inland in the course of intelligence-based and random checks carried out at retail outlets, markets, commercial premises etc. Follow-up investigations are also conducted with a view to identifying those responsible and instituting criminal proceedings where the necessary evidence has been obtained.

Revenue's strategies in relation to detection of tobacco offences are under continuous review. This includes the adequacy of existing staffing resources and equipment. In this regard, taking cognisance of the interception and seizure of a number of consignments of counterfeit cigarettes bearing counterfeit Irish tax stamps concealed in maritime freight imported from China, it is planned to introduce a new tobacco tax stamp with added security features shortly. In addition, the purchase of a second mobile container scanner has been approved, and this, when deployed, will increase Revenue's detection capability at ports.

The tackling of cigarette smuggling on an EU wide basis is co-ordinated by the European Anti-Fraud Office (OLAF) which has established a special task force (entitled OLAF Task Group Cigarettes) for this purpose. Revenue actively co-operates and shares information with this group and also with Customs Administrations in other Member States. In addition, Ireland, along with the other Member States, has ratified two international agreements concluded by OLAF with global cigarette manufacturers Philip Morris International and Japan Tobacco International, with a view to tackling the illicit trade in counterfeit and contraband cigarettes.

As regards the smuggling of counterfeit cigarettes from the Far East, the extent of the problem is evident from the fact that out of 90m cigarettes seized in maritime freight in 2008, 57m were counterfeit, while over 23m counterfeit cigarettes have been seized to date in 2009 out of a total of 30m detected in maritime freight. China is currently the primary source of counterfeit cigarettes and Revenue has sought the assistance of OLAF's Liaison Officer based in Beijing with a view to tackling this problem at source by requesting the assistance of the Chinese Authorities.

Revenue also works closely with the individual tobacco manufacturers and the Irish Tobacco Manufacturers Advisory Committee (ITMAC) with a view to identifying illicit cigarettes on sale in the State as well as current trends and trading patterns. There is close co-operation and sharing of information between Revenue and the Office of Tobacco Control (OTC). It is not possible to accurately determine the potential tax loss as a result of the illicit tobacco trade. The figure of €387m quoted is equivalent to approximately 20% of the market and Revenue would tentatively accept this is an estimate of the amount of untaxed cigarettes consumed in Ireland. However, it is important to note that such estimate includes legal cross-border shopping purchases for personal consumption and not only smuggled counterfeit and contraband cigarettes.

Statistics in relation to seizures since 2006 are set out in the following table. The majority of maritime seizures are made at Dublin Port while most seizures from passengers arriving by air are made at Dublin Airport. Cigarettes have also been seized at the ports of Rosslare, Waterford and Cork and at Cork, Shannon and Regional Airports. Most postal seizures are made at Portlaoise Mail Depot.