Smuggling is a global and serious problem faced by many industries - illustrated by the serious erosion of the legitimate tobacco market in the UK, due to far higher taxes than in mainland Europe.
Smuggling arises from tax differentials in different countries, and national trade barriers.
A policy of raising tobacco taxes to excessive levels, often driven by anti-tobacco activists, can only exacerbate this situation. British American Tobacco group companies work with governments and customs and excise authorities around the world proposing solutions to the issue, and supporting initiatives to help eradicate the problem. Along with many other companies in the tobacco industry, and in o0ther industry sectors, we are aware that some of our products are handled other than through official channels. Smuggling is a matter of considerable concern to us, not least because it undermines substantial investment over decade in building proper and well-managed distribution networks. We are acting, with others, to seek to eradicate a significant global problem, but we cannot control the distribution chain all the way to the final customer.