Up in smoke: Waterford's tobacco black market

In a special report, we take an in-depth look at what the illicit cigarette market in Waterford means to smokers, retailers and the agencies tasked with putting an end to smuggling

“ Snitches get stitches”

That was the prevailing sentiment when the Waterford News & Star put out two call-outs for information on illicit tobacco products on social media last week. That, and that the practice is something that should remain unexamined.

We asked people to come forward with their stories of the black market via email, and some did. But, for the most part, those who contributed to this report did so in the comments section on social media. Some readers insisted others keep quiet, writing “rat” or “snitch”. Others thought our request for information was a waste of time and that we should focus on drugs or other unspecific issues.

Some made jokes, while others offered an explanation for the growing trade of illegal tobacco. But, speaking to experts in retail and detection, it is far from a victimless crime.

It will come as no surprise that when investigating the black market one might find themselves facing a wall of secrecy and fear. The key message was clear- don’t tell.

The Waterford News & Star are happy to protect the identities of those who came forward, especially those who feared retaliation. Here is what they told us.

A THIRD IN A YEAR

“I’d say 33% on average gone in a year.”

That was the estimated loss, one retailer told the Waterford News and Star, to their sales of tobacco products.

Legitimate retailers must pay high taxes on their products and adhere to strict rules for their sale. Every Budget, the price of cigarettes and tobacco goes up, but according to the retailer, the profit margin is very tight. For every €100 of products sold, the shop makes €8. This, according to the retailer, is one reason the black market is so appealing.

Benny Gilsenan of Retailers Against Smuggling agrees. He told the Waterford News & Star that increases in the cost of cigarettes and tobacco means shops are charging four times what a pack on the street would cost.

“Politicians and government don’t want to act on cigarettes other than those sold by honest-to-god retailers,” said Mr Gilsenan.

Some of you said the same. One poster on social media said: “Ireland biggest nanny state in the world with the most expensive alcohol and cigarettes by far, this is why you have a black market and thank God for it.”

Another said: “No one wants to give you any information on this topic. It wouldn’t happen if it was normal prices for cigarettes. Unfortunately, we get robbed with the price.”

Yet another added: “If you want no to sell illegal cigarettes, put the price normally. For 22 years prices go up at least four times.”

YOUR FRIENDLY NEIGHBOURHOOD SMUGGLER

“Stop stirring up trouble between people... asking people to snitch on friends and neighbours,” a social media poster said. One of the most prevalent opinions when we requested information was that smuggling and selling cigarettes is something individuals do to make a bit of money. Or is a community service to those who cannot afford the shops. Indeed the retailer we spoke to said they don’t blame anyone for buying something cheap, but it does hurt his business.

Mr Gilsenan said that to a small shop, it’s not just about cigarettes.

When someone comes into a shop to buy cigarettes or tobacco, they may buy a bar of chocolate, a newspaper, milk or some other goods. So the retailer is not just out the money on the pack or pouch but the rest of the potential sale.

“There is no such thing as a victimless crime. When I hear that it sends a shiver down my spine. There is no such thing. There is a victim in every crime,” said Mr Gilsenan.

There is also a much darker side to the seemingly ad hoc trade.

According to Revenue, your illicit cigarettes may not be from your friendly neighbourhood smuggler. Revenue and Customs are responsible for the detection, seizure and prosecution of smuggling in Ireland.

A spokesperson told us that the importation and trade of illicit products is done both by individuals and organised gangs. They said they regularly share information with intelligence on national, EU and international agencies to combat gang activity. Either way, the practice is not without innocent bystanders.

COLLATERAL DAMAGE

Following our information call-out, a reader made contact with the paper. They told us that they worked at a well-known Waterford City takeaway several years ago. While at the takeaway, they witnessed cigarettes being sold under the counter and alcohol being delivered to customers.

SEIZURES IN THE MILLIONS

In October 2024, Revenue seized 1.2 million cigarettes with an estimated value of €1,005,000 from an unaccompanied container at Belview Port in Waterford.

The illicit cigarettes, branded L & B, had arrived in Ireland from Rotterdam and represented a potential loss to the Exchequer of approximately €603,000.

The seizure was the result of an “intelligence-led operation”. We asked Revenue about their methods of detection.

“Our enforcement teams operate at all main ports, airports and mail centres, as well as freight forwarding premises, and use a variety of resources such as detector dog teams, x-ray scanners and physical examinations in their work.

“Our teams also develop and share intelligence with both national and international law enforcement agencies. This enables our teams to effectively identify and screen cargo, vehicles, baggage and postal packages to intercept the supply of illicit tobacco products,” said a Revenue spokesperson.

A retailer we spoke to told us that smugglers go across to Britain or Spain, especially in the winter when it’s cheaper to smuggle back cigarettes.

Benny Gilsenan from Retailers Against Smuggling said smugglers go over on the ferry three to four times a week and bring back duty-free cigarettes for a round €6.50 a pack. The money from that funds the next trip.

Last year, Revenue seized 112.3 million cigarettes with a total value of €96.6 million and 39,407kg valued at €32.6 million nationwide.

HANDS TIED

Mr Gilsenan praised the work of Revenue, in detecting and seizing illicit products but he said he was concerned that they don’t have the resources to tackle the problem properly.

“Revenue are doing their job with their hands tied behind their backs,” said Mr Gilsenan.

A Waterford retailer we spoke to also voiced concerns about whether or not Revenue could stop people from smuggling in tobacco and cigarettes.

Indeed, the number of seizures made by Revenue does appear to be down, though not significantly.

In 2022, 6,994 seizures of cigarettes and tobacco were seized by Revenue. Seizures went down to 6,837 in 2023 and 6,420 in 2024.

Yet, the size of seizures is increasing year on year. So, we asked Revenue if resources were a challenge for them.

This was their response:

“Revenue has over 500 staff assigned across the key points of entry to the State, working on a 24/7 basis where relevant.

“Such staff are involved in a range of trade facilitation and enforcement duties. Those involved in trading illicit goods and products, including cigarettes and tobacco products, often modify their modus operandi with regard to import/export routes, product and methods of concealment.

“Our deployment and use of resources is therefore kept under regular review, having regard to ongoing risk assessment of smuggling, and criminal activities both at points of importation and within the country.

“This approach enables us to respond to evolving operational needs in an agile way.”

A second problem raised by those we spoke to was that when Revenue does catch smugglers and sellers, the punishment does not act as a deterrent.

Mr Gilsenan said he believes that even when Revenue catch someone, the courts do not take it seriously.

He said he has worked in restorative justice and defendants don’t usually understand the seriousness of the crime.

A retailer we spoke to says they have seen cigarettes sold brazenly and out in the open.

They said that is an indication that more needs to be done to combat the trade.

“If they were afraid. It won’t stop it completely, but if they get a bit scared, it might slow them down,” said the retailer.

A FIFTH OF PACKS ARE ILLEGAL

“Just join a buy and sell FB group and watch lol” - poster on Facebook.

The buying and selling of illegal cigarettes is possibly the county’s worst-kept secret.

Each year since 2009, Revenue, in conjunction with the HSE’s National Tobacco Control Office commissions Ipsos MRBI to survey smokers to find out where they get their cigarettes. In 2023, Revenue found that 19% of packs were illegal.

Of those, 99% were contraband, which are normal brands bought duty-free and smuggled in.

One percent were illicit whites, which are manufactured to be smuggled. None were counterfeit, which are cigarettes made without authorisation and to deceive customers or avoid paying duty. A further 15% were legal, but duty was not paid.

When it came to roll your own, 20% was found to be illegal while 12% were legal but not duty paid. This represents a notional estimated loss of €422 million to the Exchequer.

One might argue that with such a loss, the government should do more to tackle the problem.

Would the cost of stopping smuggling exceed the loss from turning a blind eye?

Others argue that cigarettes are bad for you however you buy them.

But Benny Gilsenan from Retailers Against Smuggling offers a different view.

“As far as I am concerned, they are a core product and a product that is a very important part of small shops. If they want to do that, ban them completely - that is not for me to say. They are a core product,” said Mr Gilsenan.

He suggested that if the Government is so concerned about the impact of cigarettes that they need to raise the prices every year, perhaps they should invest that money back into health interventions for people who smoke.

“Extra billion going into the Exchequer, you would be amazed at what you can do with that,” said Mr Gilsenan.

RESPONSIBILITY

Mr Gilsenan asks politicians of all levels of Government to focus on combating the problem.

“Every one of them has a responsibility to ensure criminality is not a thriving business,” said Mr Gilsenan.

He suggested councils who approve licences for market traders also inspect those stalls.

“They grant a licence and walk away.

“They say ‘that’s our job done’ - it’s not,” said Mr Gilsenan.

Retailers Against Smuggling also supported a bill introduced by former Fianna Fáil TD Declan Breathnach that would have criminalised the buying of illegal cigarettes. That bill was stalled when the last government was being formed, and no progress has been made since.