Brian O'Shea (Waterford, Labour)
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Question 178: To ask the Minister for Finance his views on the key actions from the UK 2008 Strategy, Tackling Tobacco Smuggling Together (details supplied); and if he will make a statement on the matter. [25570/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that they are familiar with the UK strategy paper on tackling tobacco smuggling referred to and that in many respects its content mirrors the overall approach taken by Revenue in regard to tobacco smuggling.

With regard to particular aspects outlined, I can advise the Deputy that Revenue works closely with the legitimate tobacco industry, including individual manufacturers and ITMAC, to identify current trends and trading patterns with a view to detecting illicit cigarettes on sale in the State. Liaison and sharing of information also takes place with the Office of Tobacco Control. Ireland, together with other Member States and the EU Commission, has signed international anti-smuggling agreements with Philip Morris International and Japan Tobacco International and agreements with other tobacco manufacturers are pending.

With regard to performance reporting, Revenue regularly publishes, both in press releases and on its website, details of major tobacco seizures and of convictions for tobacco smuggling and its Annual Report provides yearly statistics in this regard.

In considering the level of Customs controls at Irish ports and airports it must be borne in mind that a large majority of tobacco smuggled to Ireland by passengers comes via intra-Community flights, in particular those arriving from some of the new Member States in Eastern Europe. In this regard the operating environment for Customs has been shaped to a significant degree by the introduction of the EU Internal Market and the related principles of freedom of movement. Of specific relevance is the abolition of routine and systematic Customs checks on goods and passengers moving within any part of the EU. In this context specialist intelligence teams based at all the main airports use profiling and risk analysis together with detector dogs to assist them in identifying contraband.

The main volumes of illicit tobacco arrive in Ireland through maritime freight. The strategy utilised to counter this involves the use of intelligence and profiling techniques, together with the latest scanning technology, to detect contraband in containers. In this regard Revenue recently acquired a second Mobile Container Scanner for use in the State's ports.

In excess of thirty voluntary cooperation agreements have been signed by Revenue with port and airport operators, carriers and freight agents. In addition, Revenue continues to receive informal assistance from a wide spectrum of the import/export trade.

Revenue works closely with the European Anti- Fraud Office, OLAF in their efforts at tackling the illicit sale of tobacco. Revenue also provides and receives intelligence from other Customs Administrations. This international cooperation and sharing of intelligence and expertise plays an important role in combating illegal tobacco smuggling on a global scale.

There is also close co-operation with An Garda Síochána and multi-agency operations are mounted where appropriate to detect the distribution and sale of illicit tobacco products. In particular, since 2008 enforcement officers have been conducting checks at retail outlets, markets and distribution centres in an ongoing operation entitled 'Downstream'. This operation focuses on seizing illicit cigarettes that evaded detection at the point of importation.

On the legislative front, my Department, in consultation with Revenue, regularly reviews the adequacy of the legislative framework supporting the overall enforcement strategy. In this context the penalties for smuggling were significantly increased in this year's Finance Act.