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INDUSTRY NEWS
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Cigarette smuggler sentenced to jail A 64-year-old NSW man has been sentenced to imprisonment of 21 months to be served by way of Intensive Corrections Order after pleading guilty to tobacco smuggling offences contrary to the Customs Act 1901. On 19 May 2020, the Illicit Tobacco Taskforce (ITTF) investigations identified the sea cargo container, which contained approximately 10 million illegally imported cigarettes destined for an address in Sydney. On receipt of the goods, the man was arrested and charged with tobacco smuggling offences under section 233BABAD of the Customs Act 1901 after accessing the container. The man pleaded guilty to smuggling tobacco on 5 February 2021 and on 5 August 2021, was sentenced in the Downing Centre District Court to imprisonment of 21 months to be served by way of Intensive Corrections Order. In addition to the standard conditions, the man is to complete 200 hours of community service and is to participate in a program to address his gambling problem. In addition, the AFP-led multi-agency Criminal Assets Confiscation Taskforce (CACT) obtained restraining orders over $3.25m of assets under the Proceeds of Crime Act 2002 (Cth). ABF Commander Special Investigations Greg Linsdell said the ITTF is committed to stopping criminal groups from profiting from importing and selling illicit tobacco. “We know organised criminal groups use the profits from the sale of illegal tobacco to fund other illegal activities,” he said. “ABF officers have the tools, technology
mga.asn.au | September 2021 | Edition 5
and expertise to detect attempts to import illicit tobacco and ensure people engaging in this criminal activity will face the full force of the law.” MGA is a member of the Illicit Tobacco Industry Group (ITIG), working closely with other retailing organisations and the Australian Border Force and ATO to share information and develop measures to combat the illicit tobacco trade. This illegal trade costs retailers millions of dollars in lost sales. As reported in the KPMG 2020 Report on Illicit Tobacco in Australia, it has cost the government an estimated AUD 2.9 billion in lost excise. Money which could have gone back into infrastructures such as hospitals and schools.
Penalties for selling illicit tobacco products include: • criminal penalty – this is a criminal conviction with a prison sentence of up to five years or at least a $222,000 fine or both.
Penalties for buying illicit tobacco products include: • criminal penalty – this is a criminal conviction with a prison sentence of up to five years or at least a $222,000 fine or both.
Penalties for manufacturing or producing illicit tobacco include:
There are large penalties for stocking, buying, or selling illegal tobacco products
• criminal penalty – this is a criminal
Penalties for possessing more than two and less than five kilograms of illicit tobacco include:
MGA encourages all members to report any illegal sales activity that they are aware of anonymously to
• civil penalty – this is a Penalty
Infringement Notice of at least $44,000.
Penalties for possessing over five kilograms of illicit tobacco include: • criminal penalty – this is a criminal conviction with a prison sentence of up to five years or at least a $222,000 fine or both.
conviction with a prison sentence of up to 10 years or at least a $333,000 fine or both
Australian Border Watch www.border.gov.au/borderwatch Australian Tax Office www.ato.gov.au/general/gen/making-atip-off/ Or contact MGA national hotline 1800 888 479 or email admin@mga.asn.au
