Alan Shatter (Dublin South, Fine Gael)
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Question 83: To ask the Minister for Finance the steps, if any, he proposes taking to reduce the amount of smuggling of cigarettes and other tobacco products into the State and to ensure that those found guilty of such offence are properly punished; if his attention has been drawn to the fact that the average fine for such smuggling in 2010 is less than €600 and if he regards this as appropriate; and if he will make a statement on the matter. [42925/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am informed by the Revenue Commissioners, who are responsible for the collection of tobacco products tax and for tackling the illicit trade in cigarettes and tobacco products, that Revenue employs a multifaceted strategy to deal with this problem. It includes ongoing analysis of the nature and extent of the problem, developing and sharing intelligence on a national, EU and international basis, ongoing review of operational policies, development of analytics and deployment of detection technologies, optimum deployment of resources at point of importation and internally to intercept the contraband product and to prosecute those involved. Revenue enforcement officers are deployed at all key ports and airports. Staff deployed at these locations are often augmented by additional staff from other areas when specific operations are organised. Interception at the point of importation is achieved through a combination of risk analysis, profiling, intelligence, and the screening of cargo, vehicles, baggage and postal packages.

Revenue enforcement officers also target this illicit trade at the post-importation level by carrying out intelligence-based operations and random checks at retail outlets, markets and private and commercial premises. Revenue and An Garda Síochána also carry out regular multi-agency operations, particularly in relation to large maritime importations and in checks at inland markets.

Revenue's enforcement approach in the fight against the illicit tobacco trade is under continuous review. For example, in July of last year Revenue launched a nationwide tobacco operation, which concentrated additional Revenue resources at ports, airports and at various retail points for the purpose of identifying illicit tobacco products. This resulted in 561 seizures totalling 13.7m cigarettes and 195 kgs tobacco in the course of the two-week period of the operation. Two subsequent 3-day operations resulted in the seizure of over 1,760,000 cigarettes and 175 kgs of tobacco. Further such intensive operations are planned, to supplement the normal ongoing level of detection and enforcement activities.

The Revenue Commissioners have also established a high level internal group, chaired at Commissioner level to examine the risks related to tobacco excise, and to monitor and optimise performance in relation to detection of counterfeit and contraband tobacco products. This group has promoted a number of initiatives aimed at counteracting the illicit trade in tobacco. These include improved profiling of passengers and freight to identify tobacco smugglers, the recent establishment of a tobacco hotline, co-ordinating national blitz style operations, evaluation and acquisition of scanning and other detection technologies and learning from best practice internationally.

This strategy has resulted in the seizure of a total of 178.3m cigarettes with a retail value of approx. €75.3m, and 3,369 kilos of tobacco with a retail value of approx €1.2m, during the period January to December 2010.

With regard to the penalties available for prosecution of tobacco smuggling related offences, the penalty on summary conviction for evasion of duties is €5,000, and/or a term of imprisonment not exceeding 12 months. The penalty on indictment is up to €126,970 and/or a term of imprisonment not exceeding 5 years, or, where the value of the product concerned is greater than €250,000, up to three times the value of the products. These penalties are considered adequate. Of course, as the Deputy is aware, the precise penalty imposed on conviction in each individual case is solely a matter for the Courts and I do not propose to make any comment in that regard.

There were 94 convictions secured in the Courts for cigarette smuggling in 2010. The fines imposed amounted to €49,630 and, in addition, 13 custodial sentences and 2 community service orders were imposed. The average fine for cigarette smuggling offences in 2010 was €527.

A further 40 convictions were secured for illegal selling of unstamped tobacco products with total fines of €99,250, and 6 custodial sentences and 2 community service orders imposed. The average fine for cigarette selling offences in 2010 is €2,500.