Tobacco smuggling can be defined as the clandestine importation of tobacco products from one jurisdiction to another. Tobacco smuggling includes the evasion of excise, customs, and sales taxes. Price disparities and differential taxation levels determine the likelihood of tobacco smuggling. Tobacco smuggling goes hand in hand with taxation systems and can be found whenever revenue duties are imposed. While no reliable estimate of the annual market value of smuggled cigarettes exists, some sources say the figure would be in excess of US$50 million. This is an economic and political reality that cannot be dissociated from tax laws and the development of national economies.

The illicit trade in tobacco products is one of the most profitable types of smuggling. The World Health Organization (WHO) has estimated that ...

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