cigarettes at Beit Bridge
6 February 2007
Pretoria: Customs officials of the South African Revenue Service today
destroyed a large consignment of contraband cigarettes at the Beit Bridge
border post.
The cigarettes were seized during border control operations last year.
The 1 065 contraband master cases have an estimated street value of R4,5
million. A master case contains 10 000 individual cigarette sticks. Contraband
cigarettes are smuggled into and from South Africa in violation of the Customs
and Excise Act which prohibit any form of trade in a number of these listed
brands. They pose a serious health threat to unsuspecting consumers as
contraband is illegally manufactured.
The manufacturing process pays little attention to South Africa's health
specifications and the cigarettes contain much higher levels of tar and
nicotine than what South African health regulations allow for.
Cigarette smuggling is a major and growing concern for SARS because of the
vast amounts of revenue that is evaded in each smuggling incident. The large
increase in reported cases, the links to organised crime and the scale of
corruption indicate the seriousness of the problem.
The consignment that was destroyed at a burning site near Beit Bridge today
was confiscated on one day during September last year. Had these goods found
their way into the supply and retail chain potential losses in revenue would be
huge.
During the 2005/06 financial year SARS Customs officials conducted 1 056
(one thousand and fifty six) seizures and confiscated 228 million individual
cigarette sticks amounting to R93,5 million. Of these seizures 153 were
contraband and the remaining 85,5% were counterfeit cigarette seizures.
Cigarettes seizures have increased by 49,5% when compared to the last financial
year.
SARS must reiterate its call to South African consumers not to support the
trade in counterfeit goods, which includes smuggled contrabands. There is
strong supportive evidence indicating indelible links between counterfeit trade
and organised crime. The same smuggling and concealment techniques used for
drug trafficking are used by counterfeit traders as well as methods to obscure
the origin and destination of counterfeit and pirated merchandise.
If South African citizens are serious about combating all forms of crime, it
must be understood that buying smuggled counterfeit and contraband goods
creates a lucrative market for illicit activity. The proceeds of these products
� which may present a short term financial gain or 'bargain' for the consumer �
finances other forms of crime or criminal activity by highly organised
syndicates. Often these are the same syndicates who sell or buy stolen goods
from burgled homes.
Beit Bridge in particular has become a focus point to combat cross border
crime including smuggling. Only yesterday Customs officials together with
members of the South African Police Service (SAPS) searched a truck and trailer
transporting cotton oil cakes from Zimbabwe. A total of 5 823 cartons of
illicit cigarettes to the value of R494 995 were found hidden between and on
top of the mentioned load. Four suspects were arrested and were expected to
appear in the Polokwane Magistrate's Court today.
During the same operation the Customs team also detained a Mercedes vehicle
with 400 cartons of illicit cigarettes to the value of R34 000. One suspect has
been arrested.
For further media enquiries, please contact:
Adrian Lackay
SARS Communications
Tel: (012) 422 4206
Cell: 083 388 2580
Issued by: South African Revenue Service
6 February 2007
