Illicit trade in cigarettes is often just one element of the various illegal enterprises that transnational criminal syndicates engage in around the world, and it negatively impacts consumers, taxpayers and public health. 

Kristin Reif, director of external affairs for Philip Morris International, the world鈥檚 leading tobacco company, told an Arizona 麻豆传媒映画 of Commerce & Industry breakfast audience on Wednesday that cigarette smuggling rings are often also illegally trading in consumer goods, trafficking drugs and people and can even contribute to the financing of international terrorism.聽

鈥淧eople often think of us in many corners of the world as the cigarette company,鈥� Reif said. But, she says, 鈥渋t is our background in tobacco that has given us a core competency in combatting illegal trade.鈥�

Cigarette smugglers rarely stick to one crime, she said.

鈥淭hese criminals don鈥檛 simply do one business, they do them all,鈥� Reif said. 鈥�(Illegal trade) cuts across all industries, products, commodities and even human beings.鈥�

Reif said that Arizona has the country鈥檚 4^th highest cigarette smuggling rate, accounting for and contributing to the $6.9 billion in lost tax revenue across the nation. Reif said that reported figure is likely even larger.

鈥淚鈥檓 guaranteeing you that it鈥檚 more than $6.9 billion [in tax revenue] lost,鈥� she said. 鈥淐riminals don鈥檛 file earnings reports.鈥�

It is estimated globally that as much as $2.2 trillion in illicit goods, including arms, tobacco, and pharmaceuticals, are trafficked around the world and that up to 3.3% of world trade is counterfeit and pirated products. 

, a Department of Homeland Security operation to interdict illegally trafficked goods that launched in April 2020, resulted in more than 3,000 Covid-19-related seizures of items like masks, hand sanitizer, and other PPE and led to 362 arrests. 

Illegal cigarettes, whether smuggled out of the regular supply chain or counterfeit, also expose consumers to an unregulated product and make it more likely that children will be able to access tobacco, which undermines public health efforts. 

鈥淚llegal trade gives access to minors,鈥� Reif said. 鈥淢y company is not going to sell to a single retailer who鈥檚 going to sell to anyone below the age of 21. I don鈥檛 think any criminals are going to say, 鈥榃ell, I鈥檒l only smuggle, but I鈥檓 not going to sell to a kid.鈥� They鈥檙e going to sell to anyone who will buy their product.鈥�

Phillip Morris has established USA-IT, United to Safeguard America from Illegal Trade, a coalition of industry leaders and law enforcement agencies focused on drawing attention to the issue of black-market goods. 

鈥淭his problem is too big for one industry to address on its own,鈥� Reif said, arguing that combatting illegal trade across the board is a collaborative effort.

members include the U.S. 麻豆传媒映画 of Commerce, the National Association of Manufacturers and several makers of pharmaceuticals, apparel and consumer goods.

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