Customs brokers call for tougher penalties and reduced excise on smokes and tobacco

JAIL terms and reduced excise are among measures governments should adopt to overcome illegal imports of cigarette sticks and looseleaf tobacco, a key industry body says.

The International Forwarders and Customs Brokers Association of Australia (IFCBAA) has issued a statement with several recommendations.

IFCBAA notes the Australian Border Force reported in the 2025 financial year that seizures “in the billions” of illegally imported cigarette sticks and hundreds of tonnes of loose-leaf tobacco, representing multibillion dollar duty evasion.

According to IFCBAA, people and organised crime syndicates continue to take advantage of processes known in the industry as “piggybacking” where illicit tobacco and/or drugs are packed into containers in overseas countries and exported into Australia, under the guise of a legitimate established importer.

IFCBAA has also noted other methods including a first-time importer mis-declaring the imported cargo as legitimate products and then paying zero or minimal import related duty and GST on the illegal shipment.

IFCBAA chief executive Scott Carson said it was their understanding that until recently, the ABF had been provided insufficient resources to deal with the enormity of the issue.

He said while IFCBAA members assisted the ABF wherever they could, they were not a commercial police force and could not continue to be expected to be responsible to notify the regulators every time they thought something might be amiss given the “trade tsunami” with which they were dealing.

“We do welcome the recent announcement of the establishment of the Illicit Tobacco National Disruption Group, with the aim of strengthening Australia’s fight against criminal activity in the illicit tobacco market,” Mr Carson said.

“But will this funding be enough to deal with what is a national issue?”

Mr Carson also noted the increased use of vapes, with complications arising over those imported illegally and those prescribed for medical use, contributing to an additional administrative and cost burden.

IFCBAA has called on the federal government to work with the state governments to implement the following solutions:

• Push the courts to start dealing out jail terms for those convicted of the importation of illicit tobacco and vapes, matching those convicted of the importation of illicit drugs.
• Provide ongoing funding tranches to the newly created Illicit Tobacco National Disruption Group, beyond the modest initial funding that has been provided.
• Increased surveillance and audits of retail tobacconists and convenience stores.
• Reduce the current excise levels for legally retailed tobacco and cigarettes.
• Limit the individual purchase of legal purchased cigarettes or tobacco (over the counter) to a maximum of 5 packets per individual retail store location in any 48 hour period (subject to audit).
• Introduce new national media advertising programmes that provide awareness of the risks of consuming illicit tobacco and vapes.

Announcing the Illicit Tobacco National Disruption Group last month, Minister for Home Affairs Tony Burke said the move demonstrated the government's "commitment to combatting the trade of illicit tobacco and protecting the Australian community at all levels of the supply chain".

“In addition to joining forces with federal agencies, we have also harnessed the powers of state and territory agencies to fight the illegal tobacco trade at the border, the warehouse and retail environment," Mr Burke said.