imperial tobacco canada - What is illegal tobacco?



Illegal cigarettes are accessible to kids and available at pocket-money prices.

Illegal tobacco refers to the supply, distribution and sale of tobacco products that evade applicable taxes. It includes smuggled products, undeclared local production and all counterfeit and look-a-like products.

Smuggling

Smuggling is the movement of product (either legitimate or counterfeit) from one jurisdiction to another without paying the applicable taxes and/or duties.

Counterfeit

Counterfeit product includes product that is identical to, or a very close copy of, a branded product and packaging that is manufactured, distributed and/or sold by parties who do not have the intellectual property rights to do so.

Undeclared local production

Undeclared local production refers to product manufactured and sold for consumption in the same country without being declared to the local excise authorities, preventing excise tax from being collected. These products may be manufactured in approved factories or in illegal, covert facilities.

Cross-border trade

Cross-border trade involves legitimate product that has been purchased in one country, duty-paid or duty-free, and brought into another country to be consumed without payment of taxes in that country. This is only considered illegal trade if the volumes involved are for commercial use or, if deemed for personal use, are in excess of personal allowances. Such products may also include grey-market goods which violate intellectual property rights in the country of importation.


Page last updated: 01/07/2014 16:53:29 GMT