Government of Canada announces further initiatives to combat contraband tobacco

Highlights include public awareness campaign, new RCMP Contraband Tobacco Team and CBSA Detector Dog Service

MONTREAL, May 28, 2010 — The Honourable Vic Toews, Minister of Public Safety and the Honourable Keith Ashfield, Minister of National Revenue, Minister of the Atlantic Canada Opportunities Agency and Minister for the Atlantic Gateway and the Honourable Jean-Pierre Blackburn, Minister of Veterans Affairs and Minister of State (Agriculture), today announced further initiatives to combat contraband tobacco and to provide awareness of the damaging effects of contraband tobacco in our communities.

“Our government is taking further action to disrupt contraband tobacco which undermines the safety and security of our communities,” said Minister Toews. “The importing, manufacturing and sale of illegal cigarettes has a significant impact on our economy, and fuels organized crime in our country.”

“Enhancements to tobacco tax compliance programs and enforcement actions will help reduce contraband tobacco in Canada,” said Minister Ashfield. “In addition, the CRA will soon be launching a major advertising campaign to inform Canadians about the negative consequences of participating in the contraband tobacco market by purchasing illegal products.”

“Tobacco contraband has important consequences on our society, and I am proud of the Government’s efforts to combat contraband tobacco. Today’s announcement further demonstrates our commitment to disrupting those who make a profit from the manufacture and distribution of contraband tobacco products,” said Minister Blackburn.

In July 2008, the Government of Canada joined with all provinces in a landmark settlement concerning tobacco smuggling which saw two major Canadian tobacco companies agree to pay $1.15 Billion in fines. As a result of this settlement, the Minister of National Revenue announced a $20 million investment to combat contraband tobacco and to reduce tobacco consumption.

Today, the Government announced the following initiatives as part of this investment:

• The Royal Canadian Mounted Police will establish a Combined Forces Special Enforcement Unit Contraband Tobacco Team;
• The Canada Border Services Agency will establish a Detector Dog Service in Montreal and Vancouver, regions with the highest amount of contraband activity, including illegal tobacco; and,
• The Canada Revenue Agency will develop a multi-media ad campaign to raise awareness among Canadians of the negative impacts of purchasing contraband cigarettes

These initiatives build upon the federal government’s existing efforts to disrupt and reduce contraband tobacco such as the Federal Strategy on Tobacco, the RCMP Contraband Tobacco Enforcement Strategy and the Task Force on Illicit Tobacco Products.

The Government of Canada’s previous steps to disrupt and combat illegal tobacco activity include:

• In May 2008, the Task Force on Illicit Tobacco Products was formed and its work is ongoing.
• Canada and the United States entered into an agreement last year to cooperate on maritime law enforcement designed to crack down on smuggling of drugs, guns and people, in our shared waterways. As a result, law enforcement will be able to continue to pursue and arrest criminals regardless of whose side of the border they are on. The RCMP and U.S. officers were successful in seizing over 1.4 million contraband cigarettes and over 215 pounds of marijuana in a 57 day pilot project of this initiative in 2007.

Establishing the First Nations Organized Crime Initiative which promotes the participation of First Nations police officers in multi-agency task forces in Ontario and Quebec

The Government of Canada will continue to pursue initiatives that address the issue of contraband tobacco and its links to organized crime.

For further information:

Media Relations
Public Safety Canada
613-991-0657

Media Relations
Canada Revenue Agency
613-957-3522