Authorities say they have dismantled a large-scale illicit tobacco syndicate operating in south-east Queensland, seizing nearly 3 million illegal cigarettes and 380 kilograms of the drug.
Key points:
- The Australian Border Force executed 11 search warrants across the Gold Coast, Tweed Heads and Coffs Harbour
- Border Force has new powers to seize empty cigarette boxes that illegally use the Cancer Council’s Quitline trademark
- In the past financial year, almost 400 million cigarettes have been seized
In a series of pre-dawn raids on the Gold Coast and in northern NSW earlier this week, the Illicit Tobacco Taskforce – made up of Australian Border Force (ABF), federal and state police – combed industrial storage sheds and rural safe houses allegedly used to stockpile the drug known as ‘chop chop’.
They also seized $1.5 million in cash and more than $5 million worth of illegal nicotine vapes allegedly being peddled by the suspected criminal network.
7.30 was invited to observe the joint taskforce as they closed in on the illicit tobacco trade in the state’s south-east, where alleged members of the syndicate were woken in the early hours of the morning to sniffer dogs and authorities at a rural address in Maudsland on the Gold Coast.
Several storage sheds at an industrial estate at Arundel were also identified as drop-off points.
In total, 11 search warrants were executed across the Gold Coast, Tweed Heads and Coffs Harbour as part of the multi-agency crackdown dubbed Operation Harvest Home.
Illicit Tobacco Taskforce Commander Penny Spies said this week’s operation had made a significant dent in the criminal network and charges were expected to be laid.
“We’ll allege this is one syndicate’s operation and they have a fairly extensive distribution network here in south-east Queensland and also northern New South Wales,” she said.
“Have we disrupted the syndicate? I think we have – but we can’t stop. We have to keep going at these groups, including their offshore networks, to shut it down.”
Commander Spies said most of the illegal tobacco sold in Australia was grown overseas.
“Primarily in areas like China and Malaysia, but also from the Middle East and then it’s distributed domestically,” she explained.
“So, it’s produced lawfully in those countries, where it’s not an offence to sell tobacco in that way, and then it’s smuggled into the country.”
Even though it’s legal to use tobacco in Australia, the fact it’s heavily taxed means criminal syndicates seek to sell it more cheaply to make higher margins on the drug.
“From our perspective, it’s a fact that they’re not paying duty on those cigarettes when they’re brought across the border, they’re not paying the tax that is owed and they’re making a profit, these are organised crime groups that are profiting from the illegal sale of illicit tobacco,” Commander Spies said.
‘Not simply a financial game’
Cancer Council Victoria’s Todd Harper said the lower cost of illegal tobacco stops some Australians from quitting smoking — who otherwise would have been motivated to do so because of price hikes.
“We need to remember, of course, that this is a lightweight, high-value product. So, there is a lot of motivation for people with ill means to actually make money out of this,” he said.
“We know that a 10 per cent increase, for example, in the price of [legal] tobacco leads to about a 4 per cent reduction in consumption.
“Anything that interferes with the price of tobacco products has the impact to actually keep people addicted to tobacco for longer and that’s what’s at stake here. It’s not simply a financial game for gain for those involved.”
Other suspected criminal organisations have become increasingly sophisticated in the illegal tobacco trade, with some importing thousands of empty cigarette boxes into Australia to be filled onshore.
ABF officers said the trend may have started because illegal importers believe the boxes can’t be seized by authorities.
However, the Border Force has new powers to seize empty cigarette boxes that are illegally using Cancer Council’s Quitline trademark.
The Quitline number is a mandatory requirement on plain packet tobacco products in Australia.
Last month, Cancer Council Victoria lodged a Notice of Objection that allows the ABF to seize imported goods that infringe copyright or trademarks, including plain packaged cigarette boxes.
“When we found out about this, it certainly pointed to the level of sophistication that’s now involved and the lengths that we see [criminal] elements are prepared to go to subvert Australia’s very strong anti-smoking laws,” Mr Harper said.
Trade and Customs Assistant Secretary Kimberlee Stamatis said criminal syndicates were increasingly importing plain packaging without the tobacco product because they believed it would not be able to be seized or detected by authorities.
“The ABF is very attuned to the changing dynamic of the criminal syndicates to important illicit tobacco or ways in which they can bring it into Australia and pack it on shore with illegally grown tobacco,” she said.
In the past financial year, almost 400 million cigarettes and more than 40 tonnes of loose leaf and molasses tobacco have been seized by the Illicit Tobacco Taskforce.
“The illicit tobacco trade in Australia is growing, and it is significant,” Commander Spies said.
Watch 7.30, Mondays to Thursdays 7.30pm on ABC iview and ABC TV
Posted , updated