SMUGGLING VIA LITHUANIAN EU EXTERNAL BORDER

CURRENT SITUATION, TRENDS,

COUNTERACTIONS

Brussels

2013-04-23

Outline of the presentation

• Threats of cigarette smuggling

• Results of the fight against smuggling • Are there any side effects of the efficient fight against cigarette smuggling?

• How do we deal with the threats

• How to enhance cooperation at the EU Eastern Borders

• Ideas for further improvement, counteractions

Counterfeit cigarettes from

China From the Russian

Federation

From Kaliningrad Region

Smuggling and illegal transportation routes

Reduced quantities of seized cigarettes “Jin

Ling“

From Republic of Belarus

Increased number of seized cigarettes

produced in Belorussia

Price differences between the EU and third countries is the accelerator of smuggling

Cigarette smuggling is among the most lucrative types of smuggling. Having acquired legitimately manufactured tobacco products in the third countries (predominantly Belarus and Russia) and having illegally sold them on the EU market generated profits reach up to 1 000 % .

Results of the fight against smuggling

• Cigarettes seized by Lithuanian Customs: - 211 million cigarettes seized in 2010 - 112 million cigarettes seized in 2011 - 168 million cigarettes seized in 2012 • 2 large scale organized criminal groups were detected and arrested

in 2011 by the Customs Criminal Service; • 70 tons of raw tobacco seized in 2011

6

• 12 special operations conducted

• 9 pretrial investigations commenced in Lithuanian, 3 pretrial investigations commenced in other countries (Belarus, Germany and Poland)

• ~ 90 000 000 pieces of smuggled cigarettes (Jin Ling, Viceroy, Imperial Classic) seized

• 50 persons of the said criminal group have been prosecuted for cigarette smuggling and possession of the latter in Lithuania, Poland and Germany

• 8 customs officers are officially suspected of bribery

• Investigations in Lithuania, Poland and Germany were coordinated by OLAF

Example

In 2009-2011 Customs Criminal Service conducted a covert

investigation on cigarette smuggling from the third countries

to the customs territory of the European Union.

Side effects of the efficiency • Effects of the investments into the fight against cigarette

smuggling: - the fight becomes more efficient - more cigarettes are seized - more investigations are initiated - spending increases at the national level • Seized cigarettes are different from other types of seized

goods, cigarettes have to be destroyed • More seized cigarettes = more spending for customs

(transportation, warehousing, destruction, overtime pay) • 695.088 euro is the annual spending of Lithuanian Customs

for maintenance of the “F type” warehouse

To be deployed

in 2013

Since January, 2012

Since July, 2012

To be deployed

in 2013

CUSTOMS OFFICER LAN

SERVER (BLACK LIST)

CUSTOMS OFFICER

COORDINATION OF ACTIVITIES

AT NATIONAL LEVEL. JOINT CRIMINAL

INTELLIGENCE AND RISK ANALYSIS

Border Guards Customs

Police

COMMONLY SHARED: national data basis;

electronic tools for risk analysis,

early warning and identification

of concrete targets; daily incident reports

Financial Crime

Investigation

Service

A Permanent Task Force of the National Law Enforcement Authorities

under the coordination of the Governmental Commission

Customs is the coordinating Authority in fight against Illegal distribution and smuggling of excise goods

Regional Joint Customs operations VIA BALTICA

is a part of the development of cooperation between customs services of Estonia, Latvia, Lithuania and Poland in the fight against smuggling of tobacco products

Baltic Sea Task Force

on organised crime a platform for facilitating cooperation of Law Enforcement agencies fighting organised crime in the Baltic Sea Region (including Russia, EUROPOL, Commission) Interlinked Numberplates recognition

systems of Baltic states customs (2013) common database of vehicles number plates and container codes, possibility to trigger the alarm independent of where the border (external or internal) is being crossed and to receive InfoAlerts on on-line basis

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COOPERATION AT EU AND INTERNATIONAL LEVEL

OTHER LA AUTHORITIES CUSTOMS

WCO

Customs

LOs

Police,

Immigration

LOs

CCWP

DG TAXUD

DG HOME

DG HOME

Finalizing remarks

• Main factors contributing to the efficiency of the fight against smuggling: - human resources - equipment - IT solutions (software & hardware) - national, regional and international cooperation - financial resources • There are two different types of the customs activities in the fight

against smuggling: - customs controls at the borders and inside the territory - investigations, surveillances, undercover operations

• To increase the efficiency of the fight against smuggling customs administration needs:

-to increase the number of equipment, regularly update the equipment and IT; -to enhance customs cooperation with EU Member States and third countries; -to increase the number and capacity of staff, to train and motivate the staff, to increase resistance to corruption; -to ensure sufficient funding for the increasing administration costs.

Ideas for further improvement,

counteractions

• Specialized funding program dedicated for acquisition of customs control equipment (also sharing maintenance costs), which would grant the funding based on EU-wide equipment gap analysis and threat assessment

• Specially allocated financing of campaigns dedicated to raise social awareness and intolerance to contraband and usage of smuggled goods

Thank you for your attention

Vygantas Paigozinas

Deputy Director General

Customs Department under the Ministry of Finance of the Republic of Lithuania