Patrick O'Donovan (Limerick, Fine Gael)
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Question 65: To ask the Minister for Finance the number of illegal cigarettes that were confiscated by the Customs Service in 2010 and to date in 2011; his plans to tackle the illegal importation and sale of illegal cigarettes; and if he will make a statement on the matter. [20399/11]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that 178 million illicit cigarettes were seized in 2010 and 63.8 million were seized in the period January to June 2011. I know that the Revenue Commissioners regard the tackling of the illicit trade in cigarettes and tobacco products to be a high priority. Their strategy includes the development and sharing of intelligence on a national, EU and international basis; the use of analytics and detection technologies; and the optimum deployment of resources at points of importation and inland to intercept contraband tobacco product and to prosecute those involved.

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.

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 adoption of a comprehensive tobacco strategy and action plan, 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. This group also co-ordinates national blitz-style operations. To date, Revenue has conducted six such blitz-type operations, resulting in the seizure of in excess of 31.9m cigarettes. Further large-scale nationwide operations are scheduled to take place during the second half of 2011. Additionally, an ongoing programme of regional-level operations is targeting local markets and other distribution points.

In 2010 forty-one convictions for illegal selling of unstamped tobacco products were secured by Revenue, with total fines of €107,750 together with seven custodial sentences and two community service orders imposed. There were a further ninety-seven convictions for cigarette smuggling secured by Revenue with total fines of €50,380 and fifteen custodial sentences imposed. In the period January to June 2011, nineteen court convictions for illegal selling of unstamped tobacco products have been secured by Revenue with total fines of €48,200 and two custodial sentences imposed. An additional sixty-four convictions for cigarette smuggling have been secured with total fines of €81,450 and twenty custodial sentences imposed.

Increases in penalty for tobacco smuggling for commercial purposes will be considered in the context of the Finance Bill 2012.