Lok Sabha Question No. 305 (STARRED), answered on 2016-08-08
Subject: Import of Tobacco Products
Ministry: COMMERCE AND INDUSTRY
Asked by: BOORA NARSAIAH GOUD

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA

## STARRED QUESTION NO. 305 TO BE ANSWERED ON 08 TH   AUGUST, 2016

## IMPORT OF TOBACCO PRODUCTS

## *305. DR. BOORA NARSAIAH GOUD:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) the details of tobacco products including cigarettes imported in the country during the last three years and the current year, product-wise;
- (b) whether the cigarette imports in the country have increased during the said period and if so, the details thereof and the reasons therefor;
- (c) whether  any  case  of  illegal  imports  of  cigarettes  in  the  country  particularly  in Andhra Pradesh and Telangana have come to the notice of the Government;
- (d) if so, the details thereof indicating its impact on the sale of domestic cigarettes along with the action taken by the Government in each case; and
- (e) the corrective measures taken/ being taken by the Government in this regard?

## ANSWER

okf.kT; ,oa m|ksx jkT; ea=h ¼Jherh fueZyk lhrkje.k½ ¼Lora= izHkkj½

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

a) to  e):  A Statement is laid on the Table of the House.

*****

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO e) OF LOK SABHA STARRED QUESTION NO. 305   FOR ANSWER ON 08 TH   AUGUST, 2016 REGARDING 'IMPORT OF TOBACCO PRODUCTS'

- (a) and  (b):  The  details  of  tobacco  products,    including  cigarettes,  imported  in  the  country during  the  last  three  years  and  the  current  year,  product-wise  are  annexed.  The  value  of total import of tobacco products for the said period is as per the table below.
- (c) :  The details of seizures of cigarettes made by the Customs field formations in the States of Andhra Pradesh and Telengana during the year 2015-16 and the current year 2016-17 (upto June, 2016) are as under:

| Year                      |   Value (US$ Millions) |
|---------------------------|------------------------|
| 2013-14                   |                  40.94 |
| 2014-15                   |                  48.66 |
| 2015-16                   |                  50.28 |
| 2016-17 (April'16-May'16) |                   5.25 |

Source: DGCIS

Note: Figures for 2015-16 and April'16 to May'16 are provisional

| State                 | Year                        |   Quantity of illegal cigarettes seized (in million sticks) |   Value (in Rs. Lakh) |
|-----------------------|-----------------------------|-------------------------------------------------------------|-----------------------|
| Andhra                | 2015-16                     |                                                        3.15 |               208.419 |
| Pradesh and Telengana | 2016 - 17 (upto June, 2016) |                                                        0.31 |                15.194 |
| Total                 | Total                       |                                                        3.46 |               223.613 |

Source: Department of Revenue

The  total  number  cases  of  smuggling  of  cigarette  detected  by  field  formations  of  the Customs  across  the  country  during  2014-15  was  1312  with  a  value  of  Rs.9246  lakhs  and during 2015-16 the number of cases was 2731 with a value of Rs.16162 lakhs.

- (d): The details of Cigarette production, sales, exports and domestic sales/consumption for the last 3 years and current year are as under:

Figures:  In million Sticks

| Year     |   Production |   Sales by domestic producers (A) |   Exports (B) |   Domestic Sales(A)-(B) |
|----------|--------------|-----------------------------------|---------------|-------------------------|
| 2013-14  |       110101 |                            111796 |         10011 |                  101785 |
| 2014-15  |       105269 |                            105306 |         12078 |                   93229 |
| 2015-16  |        96517 |                             95380 |         11886 |                   83494 |
| 2016-17* |        12886 |                             16028 |          1875 |                   14152 |

Source: Tobacco Board

Note: (*)  Figures for April'16 to May'16 are provisional

(e):    All  the  Customs  field  formations  including  Directorate  of  Revenue  Intelligence  (DRI) have been alerted and sensitized to remain vigilant to prevent smuggling of goods including cigarettes.  Alerts  and  modus  operandi  circulars  are  issued  by  DRI  to  its  field  formations. Moreover, surveillance is maintained at sensitive places. Inter-agency coordination is active for greater exchange of intelligence inputs to keep a check on smuggling activities.

*****

Annexure

Details of Tobacco products imported during last three years and the current year (April to May)

|          |                                                                                         |      | 2013-14   | 2013-14   | 2014-15   | 2014-15   | 2015-16   | 2015-16   | APR'16 TO MAY'16   | APR'16 TO MAY'16   |
|----------|-----------------------------------------------------------------------------------------|------|-----------|-----------|-----------|-----------|-----------|-----------|--------------------|--------------------|
| ITCHS    | ITEM DESCRIPTION                                                                        | UNIT | QTY       | VAL(US $) | QTY       | VAL(US $) | QTY       | VAL(US $) | QTY                | VAL(US $)          |
| 24011010 | Flue cured Virginia tobacco, not stemmed/ stripped                                      | KGS  | NIL       | NIL       | NIL       | NIL       | 29099     | 22944     | NIL                | NIL                |
| 24011040 | Burley tobacco, not stemmed/stripped                                                    | KGS  | NIL       | NIL       | NIL       | NIL       | 11        | 90        | NIL                | NIL                |
| 24011070 | Tobacco for manufacture of cigar and cheroots no stemmed/stripped                       | KGS  | NIL       | NIL       | NIL       | NIL       | 579       | 7355      | NIL                | NIL                |
| 24011080 | Tobacco for manufacture of hookah tobacco no stemmed /stripped                          | KGS  | NIL       | NIL       | NIL       | NIL       | 504       | 4309      | NIL                | NIL                |
| 24011090 | Other tobacco no stemmed /stripped                                                      | KGS  | 19200     | 6993      | 6435      | 69499     | 5445      | 40958     | NIL                | NIL                |
| 24012010 | Flue cured Virginia tobacco partly / whollystemmed /stripped                            | KGS  | 58043     | 368664    | 58666     | 484996    | 101400    | 783103    | 39600              | 276519             |
| 24012040 | Burley tobacco, partly/wholly stemmed /stripped                                         | KGS  | NIL       | NIL       | 11600     | 82815     | NIL       | NIL       | 9600               | 98582              |
| 24012080 | Tobacco for manufacture of hookah tobacco , partly /wholly stemmed /stripped            | KGS  | NIL       | NIL       | 8500      | 38039     | 14650     | 68747     | 8640               | 55930              |
| 24012090 | Other tobacco partly or wholly stemmed /stripped                                        | KGS  | 1393527   | 12710418  | 1748717   | 15223800  | 2723639   | 19613138  | 24                 | 1016               |
| 24013000 | Tobacco refuse                                                                          | KGS  | 78580     | 2743      | 96500     | 3834      | 7920      | 401       | NIL                | NIL                |
| 24021010 | Cigar and cheroots                                                                      | THN* | 2281      | 883932    | 3565      | 1273174   | 871       | 443285    | 96                 | 88553              |
| 24021020 | Cigarillos                                                                              | THN* | 46        | 7948      | 32        | 6226      | NIL       | NIL       | NIL                | NIL                |
| 24022010 | Cigarettes other than filter, length <60mm                                              | THN* | 370       | 5581      | NIL       | NIL       | NIL       | NIL       | NIL                | NIL                |
| 24022040 | Filter (length 11mm or actual) cigarettes> 60mmbut<70mm                                 | THN* | 2         | 279       | NIL       | NIL       | 20        | 378       | NIL                | NIL                |
| 24022050 | Filter(length 11mm or actual) cigarettes > 70mmbut <75mm                                | THN* | 120231    | 5175214   | 530       | 24969     | NIL       | NIL       | NIL                | NIL                |
| 24022060 | Filter cigarettes of length ( the length of filter being 11 mm)>75 millimeters but<85mm | THN* | 405687    | 9745629   | 127331    | 5022712   | NIL       | NIL       | NIL                | NIL                |
| 24022090 | Other cigarettes containing tobacco                                                     | THN* | 66285     | 2639361   | 451033    | 17222933  | 434601    | 18473502  | 90686              | 3418327            |
| 24029010 | Cigarettes of tobacco substitutes                                                       | THN* | NIL       | NIL       | NIL       | NIL       | 1         | 892       | NIL                | NIL                |
| 24029090 | Other cigarettes, cigarillos of tobacco substitutes                                     | THN* | 3596      | 209733    | 1826      | 58716     | 52660     | 1241863   | 19000              | 141137             |
| 24031110 | Hookah or gudaku tobacco                                                                | THN* | 135265    | 281463    | 197288    | 298707    | 398161    | 609692    | 84000              | 128053             |
| 24031190 | Other water pipe tobacco                                                                | KGS  | 10975     | 151765    | NIL       | NIL       | NIL       | NIL       | NIL                | NIL                |
| 24031910 | Smoking mixtures for pipes and cigarettes                                               | KGS  | 2660      | 39408     | 360       | 4816      | NIL       | NIL       | NIL                | NIL                |

| 24031990                      | Others of heading. 240319                        | KGS   | 10250   | 213003   | 51230   | 519803   | 47842   | 343949   | 7972   | 74946   |
|-------------------------------|--------------------------------------------------|-------|---------|----------|---------|----------|---------|----------|--------|---------|
| 24039100                      | Homogenized" or "reconstituted" tobacco          | KGS   | 398751  | 1706942  | 273387  | 1034364  | 556055  | 1891543  | 1458   | 30379   |
| 24039910                      | Chewing tobacco                                  | KGS   | 13306   | 22732    | 19641   | 44903    | 19484   | 113303   | NIL    | NIL     |
| 24039930                      | Jarda scented tobacco                            | KGS   | 500     | 4173     | NIL     | NIL      | NIL     | NIL      | NIL    | NIL     |
| 24039950                      | Preparations containing snuff                    | KGS   | 8025    | 25921    | NIL     | NIL      | NIL     | NIL      | NIL    | NIL     |
| 24039960                      | Tobacco extract and essence                      | KGS   | NIL     | NIL      | 6       | 777      | NIL     | NIL      | NIL    | NIL     |
| 24039970                      | Cut tobacco                                      | KGS   | 735731  | 6640653  | 810830  | 7004920  | 823770  | 6580068  | 124650 | 933435  |
| 24039990                      | Other manufactured tobacco extracts and essences | KGS   | 10674   | 96137    | 20372   | 240487   | 6624    | 39813    | 180    | 7768    |
| Grand Total (in US$ Millions) | Grand Total (in US$ Millions)                    |       |         | 40.94    |         | 48.66    |         | 50.28    |        | 5.25    |

*THN: THOUSAND NUMBERS

NOTE: Figures for 2015-16 and April'16 to May'16 are provisional.