Brendan Griffin (Kerry South, Fine Gael)
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Question 103: To ask the Minister for Finance his plans to tackle the problem of the counterfeit tobacco trade here; and if he will make a statement on the matter. [9242/11]

Michael Noonan (Limerick City, Fine Gael)
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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 multi-faceted strategy to deal with the problem of such illicit trade. This enforcement approach does not by its nature differentiate between counterfeit tobacco product and contraband product on which duty has not been paid in the State. The strategy involves ongoing analysis of the nature and extent of the problem, developing and sharing intelligence on a national, EU and international basis and ongoing review of operational policies. It also includes the development of analytics and detection technologies and the optimum deployment of resources at points of importation and inland in order to intercept illicit product and to prosecute those involved.

Revenue enforcement officers are deployed at all key ports and airports. Personnel deployed at these locations are regularly supported by additional staff from other areas when specific operations are taking place. 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 post-importation level by carrying out intelligence-based operations as well as 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.

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 during 2010 resulted in the seizure of over 1.76m cigarettes and 175 kgs of tobacco. In two similar operations carried out in 2011, a total of 580 seizures were made, comprising 7.4m cigarettes and 167kgs tobacco.

The Revenue Commissioners have established a high level internal group, chaired at Commissioner level, to examine the risks related to tobacco products tax and to oversee and optimise the 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 and the establishment of a confidential tobacco hotline via which members of the public and the retail trade may report illicit trade. It also co-ordinates national blitz-style operations.

In terms of detection equipment, a second mobile X-ray container scanner, to augment the one first deployed in 2006, was commissioned by Revenue in January 2010 and is now fully operational. Smaller baggage/parcel scanners are deployed at all major ports, airports and postal depots. In addition to the X-ray equipment, Revenue also uses a tobacco detection dog.

This strategy has resulted in the seizure of a total of 178.3m cigarettes (111m of which were determined to be counterfeit) with a retail value of approximately €75.3m and 3,369 kgs of tobacco with a retail value of approximately €1.2m during the period January to December 2010.

In addition, during the period January to March 2011, a total of 29.7m cigarettes (19.5m of which were counterfeit) and 818 kgs tobacco were seized by Revenue.