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Illicit tobacco trafficking: growing in Europe but declining in Italy

The latest report by KPMG and Philip Morris highlights the impact and costs associated with the phenomenon in 2020. France and Greece are doing worse than us. The damage to the Treasury

Illicit tobacco trafficking: growing in Europe but declining in Italy

Il illicit cigarette trafficking is growing in Europe for the first time since 2011 due to counterfeit products: +0,8 billion cigarettes compared to 2019 and with lost revenue to the treasury equal to around 8,5 billion euros. In Italy however the phenomenon decreases in Italy. This is what emerged from the latest independent report produced by the consultancy firm KPMG, with the contribution of Philip Morris International, which highlights the impact and economic costs associated with the phenomenon of illicit cigarette trafficking, in Italy and in Europe, with reference to the year 2020.

Among the European countries where the phenomenon of crime is particularly significant, we find on the podium France and Greece respectively 23% e 22% on total consumption, while the incidence in Italy is 3,4%, well below the EU average of 7,8% of total consumption. Unlike other large European countries such as Germany and Spain, the Italian trend confirms a decrease, thanks to the action carried out by the police forces and by the Customs and Monopolies Agency.

While nationwide, the lost revenue caused by the illicit cigarette trade is around 400 million euro, with a recovery of 68 million euro compared to 2019. And also for 2020, the most affected areas are confirmed to be Friuli-Venezia Giulia and Campania. Compared to the national average of 3,4%, the share of illicit consumption out of the total is respectively 22% and 12% in the two regions.

“It is essential to protect consumers from counterfeit products. For this, it is necessary to continue to reward the synergistic approach between public and private world actors to tackle and eradicate illicit trade in Europe and beyond – he said Alvise Giustiniani, Vice President Illicit Trade Prevention for Philip Morris International -. Eliminating the illicit trade is especially important in the context of transforming our company towards a smoke-free future. Among the initiatives to combat this phenomenon, we recently opened the third round of PMI Impact, a Philip Morris International initiative aimed at funding innovative projects and solutions against the threats deriving from illicit trade. The positive data for Italy require thanks to the forces of order and the institutions for the effort and commitment made to protect consumers, public revenues and the market".

One of the drivers that has increased illicit trafficking in Europe is certainly the digital technology which has facilitated the illicit trafficking linked to them, making tracing even more difficult. For Emilio Gatto, Director General of the Prevention and Contrast to Food Frauds MIPAAF with the increase in exchanges, multi-channels and the explosion of electronic commerce, the mission of those who have to carry out checks has become increasingly difficult. We need the ability to analyze the products and above all a coordinated action between the various operators involved in the control.

Furthermore, "the counterfeiting chain takes advantage of the use of social networks and the system of small online shipments", he underlined Mario Peserico, President of INDICAM – Association for the Protection of Intellectual Property, during the virtual conference “Illicit trafficking and supply chain security. The challenges for the Italian system”, promoted by ISPI and Philip Morris Italia.

He also spoke on the subject Andrea Taborelli, Vice President Treasurer Traceability and Supply Chain, Italian Fashion System and Chief Executive Officer, Tessitura Serica AM Taborelli SRL recalled, however, the importance of technology and in particular of the blockchain tool to increase traceability, a tool used by the fashion system with good results .

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