“I have been caught once, but such is life and there is money to be made. 24/7 coverage of breaking news and live events. Many of the illegal cigarettes sold in South Africa are smuggled in from Zimbabwe, which grows tobacco and manufactures cigarettes. Introduction. In South Africa, the largest share of the illicit cigarette market is occupied by those manufactured locally, with other brands smuggled from neighbouring countries like … JOHANNESBURG -- Cigarette smuggling boomed in South Africa during its nearly five-month ban on legal sales as part of anti-COVID-19 measures, and even though legal sales are once again permitted, many in the tobacco industry think the illegal trade will continue. The Tobacco Products Control Amendment Act placed a limit on permissible levels of nicotine and tar. Only a few weeks after its construction, the $2.1 million fence was riddled with holes made by smugglers, who derided it as a “joke.”. By Thulani Mpofu. According to the Tobacco Institute of Southern Africa, the illegal cigarette market cost South Africa R8bn in lost taxes last year, and more than R40bn since 2010. The three countries were also the chief targets of smuggling syndicates. Cigarette smuggling boomed in South Africa during its nearly five-month ban on legal sales as part of anti-COVID-19 measures, and even though legal sales are once again permitted, many in the tobacco industry think the illegal trade will continue. Last month, a joint operation by Saps and South Africa National Defence Force (SANDF) recovered cigarettes worth R1.5m in Limpopo. Following President Cyril Ramaphosa’s announcement that the ban would be lifted, one of those well-organized networks boasting of several hundred customers sent out a message promoting a discount on illegal cigarettes, even offering partial refund on some products. Patrols and surveillance are conducted jointly with other security services among other things to combat all forms of illegal activities including smuggling,” Zimbabwe police spokesperson Paul Nyathi told the Guardian. “I cannot miss this opportunity to make more money. According to the Tobacco Institute of Southern Africa (TISA), the size of the global illegal tobacco trade ranges between 330-660 billion cigarettes a year. JOHANNESBURG: Cigarette smuggling boomed in South Africa during its nearly five-month ban on legal sales as part of anti-COVID-19 measures, and even though legal sales are once again permitted, many in the tobacco industry think the illegal trade will continue. South Africa National Defense Forces patrol on motorcycles along the newly built fence on the South Africa-Zimbabwe border near the border town of Musina, South Africa, Tuesday June 30, 2020. On May 15, 2020, South African police in northern Limpopo Province near the border with Zimbabwe impounded four vehicles and cigarettes worth ZAR1.4 million ($83,530). The Beitbridge border post, 500 kilometers (310 miles) north of Johannesburg, is known as the main entry point for illegal cigarettes from Zimbabwe. The average price for Zimbabwean brands is US$1.60 (£1.30) for 20 cigarettes, but South African smokers will pay more since the ban. illicit transportation of cigarettes or cigars from an administrative division with low taxation to a division with high taxation for sale and Comparing an independent consumption survey with the NT data we find that the level of cigarette smuggling in South Africa is in fact significant, constituting between 40% and 50% of the total market, and that cigarette tax hikes have to a large extent contributed to its continued existence and growth by creating a financial incentive to smuggle. It takes five minutes to cut your way through. During the second phase of the lockdown in Zimbabwe, cigarettes would disappear quickly off the shelves which shows that there is somewhere where they are being taken to.”. South Africa and Zimbabwe have stepped up border patrols in a bid to stop cigarette smuggling, which has boomed since Pretoria banned the sale of tobacco in March. They can fix it, we will cut it again. I am even failing to meet the demand, these are exciting times,” he told the Guardian. During South Africa's prohibition of cigarette sales, an estimated 93% of smokers bought their cigarettes from illegal sellers, according to research by the University of Cape Town published in July. In recent court proceedings to try to get the ban lifted, Fita said ministers had failed to provide evidence that smokers were more prone to the coronavirus. The large scale of illegal cigarette sales in South Africa was one reason why another cigarette producer, Japan Tobacco International, stopped manufacturing here, according to Bongani Mshibe, JTI's communications director in South Africa. “We have arrested a number of people in connection with the smuggling of cigarettes. Mojapelo said Saps had seen a surge in smuggling since lockdown. “Have you seen it? JOHANNESBURG (AP) — Cigarette smuggling boomed in South Africa during its nearly five-month ban on legal sales as part of anti-COVID-19 measures, and even though legal sales are once again permitted, many in the tobacco industry think the illegal trade will continue. He said during the ban illegal trading “would have grown in terms of distribution, in terms of their availability.". South Africa is not alone in facing the problem of illegal tobacco. Many of the illegal cigarettes sold in South Africa are smuggled in from Zimbabwe, which grows tobacco and manufactures cigarettes. Overnight, furious smokers became blue-collar criminals illegally purchasing cigarettes from their neighbourhood dealers. Two Zimbabwean men were last week arrested in Limpopo Province, South Africa, for smuggling into the neighbouring country, a contraband of export quality cigarettes worth about R140 000. Police in Zimbabwe said they are investigating syndicates involved in the illegal trade, and have arrested several smugglers in transit. South Africa Ends Ban On Cigarettes, But Smuggling May Stay Cigarette smuggling boomed in South Africa during its nearly five-month ban on legal sales as part of anti-COVID-19 measures, and even though legal sales are once again permitted, many in the tobacco industry think the illegal trade will continue. And smuggling cigarettes — either untaxed or counterfeit — has proved a particularly lucrative, low-risk way to fund operations. The Beitbridge border post, 500 kilometers (310 miles) north of Johannesburg, is known as the main entry point for illegal cigarettes from Zimbabwe. During the ban, illegal cigarettes were easily found in South Africa's streets, especially in townships, but informal sellers also came up with new ways to reach customers. Excise duties make up almost half of the retail price of a packet of 20 cigarettes in South Africa. 'Illegal cigarette trade accounts for 14% of Sars' R50bn shortfall' Research conducted by global company Ipsos has found that the non-organised trade sells 79.7% of all cigarettes in South Africa. From Zimbabwe, there are more than 200 illegal entry points into South Africa where cigarettes are being sold from under the counter in shops or from people’s homes, with WhatsApp groups being used to market the business. The Beitbridge … “Now, they hardly sell for 4,000 rand,” he said. (AP Photo/Jerome Delay). Many of the illegal cigarettes sold in South Africa are smuggled in from Zimbabwe, which grows tobacco and manufactures cigarettes. It’s completely useless. Photographing poverty's pandemic: 'It's a different beast in South Africa'. South Africa “has the biggest, by far, illegal trade in tobacco in the world,” said British American Tobacco, the world's second-largest tobacco group, which says it has an estimated 78% share in South Africa's legal cigarette sales. “I cross the border almost every day, sometimes twice a day,” said Jonathan, a smuggler in his twenties, in July. “We have arrested a number of people in connection with the smuggling of cigarettes. South Africans like our cigarettes because of the quality … and high nicotine,” Peter said . At Mbare, a popular vegetable market in Harare, smugglers could be seen loading boxes of cigarettes on to trucks that are taking legal goods across the border to South Africa. The Fair Trade Independent Tobacco Association (Fita) is pressing the South African government to lift the ban on the sale of cigarettes. Cigarette smuggling thrives in southern Africa. South Africa was one of the first middle-income countries to use excise tax increases as a tobacco control tool. “The level of cigarette smuggling in South Africa is highly over-estimated by the tobacco industry, as this creates pressure on the Treasury to keep excise taxes low. Peter, 38, from Beitbridge, who has been selling illegal cigarettes for more than five years, said the South African ban had presented a huge opportunity for many in the business. The Beitbridge border post, 500 kilometers (310 miles) north of Johannesburg, is known as the main entry point for illegal cigarettes from Zimbabwe. South Africa built a $2 million fence to deter illegal crossings but it hasn't stopped smugglers.Illegal trade is one of the few businesses to flourish since South Africa imposed sweeping measures at the end of March to try to combat the new coronavirus. Smugglers have been crawling through broken sections of the fence and taking advance of the particularly porous Beitbridge/Musina crossing point. Fri 26 Jun 2020 02.15 EDT 235 South Africa and Zimbabwe have stepped up border patrols in a bid to stop cigarette smuggling, which has boomed since Pretoria banned the sale of tobacco … Tobacco smuggling in South Africa In a 2012 working paper for the department of economics at Stellenbosch University , Craig Lemboe and Philip Black found that cigarette smuggling in South Africa was significant, constituting between 40% and 50% of the total market, and that cigarette tax increases had, to a large extent, contributed to its continued existence and growth by creating a financial incentive to smuggle. Aware of the smuggling trade, South Africa built a fence 40 kilometers (25 miles) long and 1.80 meters (5.9 feet) high in April to deter crossings of individuals potentially carrying COVID-19. In more affluent suburbs, residents would share phone numbers to have cigarettes delivered to their homes. An investigation by the Guardian found that large consignments of cigarettes are moved by truck between the two countries. Lackay explained that South Africa, Malawi and Botswana were the biggest cigarette manufacturers in Africa. This crossing point is also being used to smuggle cigarettes into South Africa … Hezbollah, the Taliban, and al-Qaeda are involved in smuggling cigarettes; so are the Real Irish Republican Army (Real IRA) and the Kurdistan Workers’ Party (PKK). Many of the illegal cigarettes sold in South Africa are smuggled in from Zimbabwe, which grows tobacco and manufactures cigarettes. The illegal trade in cigarettes in South Africa has been booming for decades but when lockdown regulations banned the sale of smokes, it increased demand in the black market like never before. Cigarette smuggler nabbed Cigarettes were valued at R200 000 were found in the back of a Toyota bakkie driving from Grahams Town to George on Tuesday 12 May. People who cannot afford to hire trucks risk crocodile attacks to cross the Limpopo, aided by villagers who act as guides to find suitable spots to cross, either by boat or on foot – the river is shallow at this time of year. Nonetheless we do not need to combat smuggling and the way to do so is not by lowering taxes but by adopting the measures proposed by the protocol,” Saloojee said. With tobacco sales banned in effort to curb coronavirus, illegal trade has surged on border with Zimbabwe, Last modified on Thu 15 Oct 2020 09.18 EDT. There was a rush of sales of cigarettes when the ban was lifted on Aug. 18, but some of South Africa's cigarette manufacturers say they fear the growth of the illegal market during the prohibition period could have a lasting impact and reduce legal sales. The illegal cigarette market cost South Africa R8bn in lost taxes last year. JOHANNESBURG - Cigarette smuggling boomed in South Africa during its nearly five-month ban on legal sales as part of anti-COVID-19 measures, and … “Right now, people are not crossing anymore as it is not worth it,” said Hopewell, who spoke on condition of anonymity to avoid arrest. But neither the fence nor South African military patrols appeared to be effective at hindering the smuggling trade. They are taking advantage of the porous borders and we have confiscated contraband,” South African police service (Saps) Limpopo province spokesperson Brigadier Motlafela Mojapelo told the Guardian. Usually one of the busiest crossing points in Africa, the border post has been closed to non-essential traffic since March 18. A recent study by the University of Cape Town researchers showed 90% of smokers had bought cigarettes during the lockdown, smokers who could not buy their usual brands had access to other new brands on the market, from Zimbabwe, Mozambique, Angola, the Democratic Republic of the Congo and China. They will fix it again and we will cut it again.” He refused to give his real name to avoid arrest. During the ban, he said, he could buy box of 50 cartons of a local cigarette brand for the equivalent of 5,000 rand in Zimbabwe, smuggle it across the border and sell it for 11,000 rand. Cigarette smuggling boomed in South Africa during its nearly five-month ban on legal sales as part of its anti-COVID-19 measures. Hours before the official lifting of the ban came into effect, BAT called on South Africa to “urgently” ratify the World Health Organization protocol to eliminate illicit trade in tobacco products. In Beitbridge, smuggling activity dramatically decreased as profits plummeted overnight, according to a smuggler. Mazzotti and the Carnilinx co-directors are self-confessed tax cheats who allegedly stand at the centre of South Africa’s lucrative multi-billion-rand cigarette smuggling enterprise. From Zimbabwe, there are more than 200 illegal entry points into South Africa where cigarettes are being sold from under the counter in shops or from people’s homes, with WhatsApp groups being used to market the business. For those who do not want to go through all the smuggling processes from South Africa, there are organised syndicates who can buy the goods on their behalf and then wait for delivery at the illegal crossing points. “We have intensified our patrol alongside the SANDF,” Mojapelo said. The country claimed smokers were more prone to Covid-19 – something that has been challenged by tobacco companies – but the illegal trade has increased, despite South Africa erecting a R37m (£1.7m) 25-mile fence across the border in April as part of its measures to curb the spread of coronavirus. Norman, 40, from Harare, said: “Our customers are paying thrice the normal price for a box of cigarettes so whatever the risk, I’ll get my merchandise across.”, One tobacco operator told the Guardian: “People are making a lot of money through smuggling because they buy the cigarettes in the local currency which makes Zimbabwean cigarettes very cheap. I have customers in many parts of South Africa who need my stuff. Less than two months after the fence’s completion, more than 50 holes were seen along a 20-kilometer stretch. 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