Authorities are trying to contain cigarette smuggling activities which have been on the rise as Tet nears.
Smuggling flourish in Vietnam-Cambodia border areas
The smugglers often use motorbikes to transport their goods on the route from Ben Cau District in Tay Ninh Province to Duc Hue District in Long An Province.
The smugglers are especially active in Tay Ninh Province, transporting and selling their goods along the rivers, where wholesalers wait for their deliveries. The shipments cigarettes will then be sent to HCM City.
Taking advantages of the network of rivers and fields along the border area between Vietnam and Cambodia, the smugglers are constantly on the move to avoid policing agencies. Other areas such as Thuong Phuoc Border Gate or the border area in An Giang Province are also extremely active with smugglers.
According to the Vietnam Tobacco Association, the brands Jet and Hero are widely being smuggled into the country. These brands are produced by Indonesian-owned Sumatra Company, however they are not very popular in Indonesia. So they are imported into Cambodia because of favourable tax policies, then find their way into Vietnam.
Recently, the HCM City police raided seven locations in Hoc Mon District, seizing nearly 100,000 boxes of smuggled cigarettes despite resistance from the smugglers and their effort to hide the goods.
HCMC police raid the smuggled tobacco warehouse
The Vietnam Tobacco Association said the illegally imported cigarettes have taken nearly 20% of the domestic market share. The contraband was estimated to have caused a loss of VND4.3 trillion to the state budget in 2012.
Domestic suppliers of raw materials for cigarette manufacturers have also suffered, with 43,000 labourers unemployed and about 10,000 ha of tobacco growing land left fallow for four to five months.
On January 11, a conference to popularise Circular 36 was held by the Steering Committee against smuggling, fake goods and trade frauds with Vietnam Tobacco Association.
The circular gives details about how to deal with violations in cigarette business, smuggled materials and smuggled alcohol.
According to the circular, a smuggler caught with between 1,500 to 4,500 boxes of tobacco should face 6 months to 3 years in prison, while those caught with 4,500 to 13,500 boxes should face 3-7 years in prison and 7-15 years for people who smuggle over 13,500 boxes.
"The new circular with stricter penalties will help prevent smuggling activities, ensure that there's less loss to tax revenue and create a level playing field for legitimate enterprises," Pham Kien Nghiep, General Secretary of the Vietnam Tobacco Association said.