Tobacco smuggling breaches the strict rules introduced by the EU and its member governments on the manufacturing, distribution and sales of tobacco products. It has many harmful effects, in particular:
- draining public budgets
- posing serious risks to consumers and businesses
- undermining public health.
OLAF’s mandate is to crack down on the illicit trade in tobacco on behalf of the EU. It does this through investigative work.
1. FCTC Protocol
The FCTC Protocol is the main international anti-smuggling treaty. The EU ratified it in 2016 and it entered into force in 2018.
The Protocol tackles the illicit trade in tobacco by introducing a package of joint measures to be taken by Parties.
OLAF participated in the first Meeting of the Parties (MOP1) to the Protocol in October 2018, in the second Meeting of the Parties (MOP2) in November 2021 and in the third Meeting of the Parties (MOP3) in November 2023.
Related documents:
- Decision 2016/1749 on the FCTC Protocol
- Decision 2016/1750 on the FCTC Protocol (incl. judicial cooperation on criminal matters and the definition of criminal offences)
- Systems for tobacco traceability and security features
2. Agreements with tobacco manufacturers
To address the problem of contraband and counterfeit cigarettes, the EU, all its countries (except Sweden, for the agreements with British American Tobacco and Imperial Tobacco Limited) and the UK have signed legally binding and enforceable agreements with the world’s largest tobacco manufacturers.
The manufacturers agreed to:
- pay $2.15 billion to the EU and countries participating in the agreement
- prevent their products falling into the hands of criminals by:
- supplying only enough to cover legitimate demand;
- ensuring they sell to legitimate customers only;
- implementing a tracking system to help law enforcement agencies fight the illicit trade in tobacco.
British American Tobacco (2010-30)
Imperial Tobacco Limited (2010-30)
Philip Morris International (2004-16)
Background information
2013
Adoption of an EU comprehensive Strategy against cigarette smuggling accompanied by an Action Plan, implemented in close cooperation with national administrations.
2017
Publishing of a Progress report on EU measures against cigarette smuggling.
2018
Presentation of a new Commission Action Plan.
2019
Launch of an EU Survey on perceptions of illegal tobacco products.
2023
Release of the Outcome on the Implementation of the 2nd Action Plan to Fight the Illicit Tobacco Trade for the years 2018 to 2022.