Baltic Criminological Seminar

since 1987

RU

Smuggling and Illicit Trade of Excise Goods in Lithuania: Sociological Analysis of Administrative Offences

Abstract: Smuggling and illicit trade of excise goods is one of the most actual problems in Lithuania. The control efficiency of smuggling and illicit trade of excise goods is one of the priorities of the Governmental Program. Most Government initiatives are directed towards permanent tightening of sanctions. However, the extent of the smuggling and illicit trade of excise goods problem is not decreasing. What is more, there are indications that mostly small offenders become “addressees” of the draconian administrative sanctions. The report is based on the sociological research of administrative offences and analysis of the socio-demographic portrait of offenders. The sociological analysis has been done on the basis of 1100 administrative cases of the year 2013. The sociological analyses included socio-demographic characteristics (age, gender, residence, citizenship, employment) of offenders, characteristics of administrative offences (type of goods, value of goods, value, amount and type of cigarettes, place of the offence, etc.) and characteristics of administrative penalties (type of administrative penalty, confiscation, etc.).

Key words: smuggling, illicit trade of excise goods, administrative offences, socio-demographic portrait of offenders, characteristics of administrative offences, characteristics of administrative penalties

Introduction

Smuggling and illicit trade of excise goods is one of the most actual problems in Lithuania. Different researches show that in Lithuania counterfeit and smuggling increased, along with an overall increase in consumption. According to the KPMG LLP data, Lithuania was one of leading countries in illicit cigarette consumption as a percentage of overall consumption in 2013.[1] Lithuanian Free Market Institute annually publishes results of the researches carried out at three Baltic States. According to the data published in 2013, Lithuanians mostly justify or rather justify (62 percent of the all respondents) smuggling and consumption of illegal goods (such as cigarettes, alcohol products and fuel) in comparison with Latvians and Estonians (respectively 51 percent and 31 percent). One third of Lithuanians confesses purchased the smuggled or illegally produced or marketed cigarettes in 2012.[2]

The Lithuanian Government has adopted some measures against the smuggling and illicit trade of excise goods. The control efficiency of smuggling and illicit trade of excise goods is one of the priorities of the 2012-2016 Governmental Program. In the paragraph 56 of the Program a special attention is directed towards controlling smuggling and shadow economy in Lithuania.[3]

Most Government initiatives are directed towards permanent tightening of sanctions. However, the extent of the smuggling and illicit trade of excise goods problem is not decreasing. What is more, there are indications that mostly small offenders become “addressees” of the draconian administrative sanctions. The report will be based on the sociological research of administrative offences and analysis of the socio-demographic portrait of offenders. The sociological analysis has been done on the basis of 1100 administrative cases of the year 2013. 

1. Administrative responsibility for the smuggling and illicit trade of excise goods in Lithuania

The Code of Administrative Offences provides the administrative responsibility for the excise goods storage, transportation, use or disposition in violation of established procedures (Article 1632) and for the smuggling (Article 210).[4]

Excise goods storage, transportation, use or disposition in violation of established procedures, trade of such goods without labels or with the old labels incurs a fine from 28 Euros to 14 481 Euros with the confiscation of goods. The vehicles might be also confiscated. The penalty depends on the value of illegally stored, transported, used or disposed goods and is counted in minimal subsistence levels (MSL).[5]

Smuggling is a transportation of goods, money, art or other items which must be submitted to the custom, except movable cultural property or antiques, firearms, ammunition, explosives, radioactive materials or other strategic goods, poisonous and highly active materials or drugs and their precursors (precursors), within the state border of the Republic of Lithuania avoiding the custom control. Smuggling incurs a fine from 144 Euros to 5 792 Euros with the confiscation of goods. The vehicles might be also confiscated. As in Article 1632 the penalty depends on the value of goods and is counted in minimal subsistence levels (MSL).[6]

For the sociological analysis only parts of these two Articles which incur severe penalties were selected. 

2. Preliminary results of sociological analysis

The sociological analyses included socio-demographic characteristics (age, gender, residence, citizenship, employment, education, family status) of offenders, characteristics of administrative offences (type of goods, value of goods, value, amount and type of cigarettes, place of the offence, etc.) and characteristics of administrative penalties (type of administrative penalty, confiscation, etc.). 

The preliminary results of the analysis of socio-demographic characteristics of offenders punished for violation Article 1632 show that mostly offenders were under age 35-45 or older than 55 years. More than half offenders were men. Unfortunately, in administrative cases there is little information about such socio-demographic characteristics as employment, education or family status. Almost all cases (92.8 percent) were related with storage, transportation, use or disposition cigarettes. As KPMG LLP data also shows the most popular cigarettes (more than half of all stored, transported, used or disposed cigarettes) in Lithuania were from Grodno Tobacco Factory.[7] The minimum value of cigarettes was 1.59 Euros while the highest value 9 288.55 Euros. The highest amount of cigarettes exceeded 4 500 packs. The highest fine for excise goods storage, transportation, use or disposition in violation of established procedures exceeded 14 481 Euros. 

The preliminary results of the analysis of socio-demographic characteristics of offenders punished for violation Article 210 show that mostly offenders were under age 25-35. The vast majority of offenders were men. More than half offenders were unemployed. Almost all cases were related with cigarettes’ smuggling. One third of all cigarettes were from Grodno Tobacco Factory. The minimum value of cigarettes was 113.89 Euros while the highest value exceeded 9 223.57 Euros. The highest amount of cigarettes was 40 600 packs. The highest fine for smuggling exceeded 5 792 Euros.  

More detailed results of sociological analysis and conclusions will be presented during conference.

Literature:

  1. Bikelis S. Permąstant sankcijas už kontrabandą: proporcingumo problema (I). Proporcingumo principas ir bausmės už kontrabandą // Teisės problemos, 2012, Nr. 4 (78) 
  2. Communication from the Commision to the Council add the European Parliament. Stepping up the Fight against Cigarette Smuggling and Other Forms of Illicit Trade in Tobacco Products – A Comprehensive EU Strategy. 2013, p. 1-21. Access through the internet: < http://ec.europa.eu/anti_fraud/documents/2013-cigarette-communication/communication_en.pdf>
  3. KPMG LLP. A Study of the Illicit Cigarette Market in the European Union. 2013 Results, p. 1-362. Access through the internet: <http://www.pmi.com/eng/media_center/media_kit/Documents/SUN%20Report%202013.pdf>
  4. Lietuvos Respublikos Administracinių teisės pažeidimų kodeksas (Žin. 1985, Nr. 1-1)
  5. Lietuvos Respublikos Seimo nutarimas „Dėl Lietuvos Respublikos Vyriausybės programos“ (2012 m. gruodžio 13 d. Nr. XII-51)
  6. Lithuanian Free Market Institute. Lithuanian Shadow Economy. 2012, No.1, p. 1-35
  7. Lithuanian Free Market Institute. Population Attitude Survey towards Smuggling and Consumption of Illegal Goods 2013, p. 1-10. Access through the internet: <http://files.lrinka.lt/Tyrimas_kontrabanda/Report.pdf>
  8. Malinauskaitė J., Šulija G., Šulija V. Kontrabanda Lietuvoje: kriminologinės, socialinės, ekonominės, teisinės problemos ir kontrolės perspektyvos // Teisės problemos, 2001, Nr. 4 (34)
  9. Malinauskaitė J., Šulija G., Šulija V. Kontrabanda: kontrolė ir prevencija Lietuvoje. Vilnius, Muitinės departamentas, Teisės institutas. 2002 
  10. Nagy J. Tackling cigarette smuggling with enforcement: case studies reviewing the experience in Hungary, Romania and the United Kingdom // World Customs Journal, 2012, Vol. 6, No. 2
  11. Smuggling via Lithuanian EU External Border: Current Situation, Trends, Counteractions. Brussels, 2013-04-23. Access through the internet: <http://www.europarl.europa.eu/document/activities/cont/201304/20130429ATT65438/20130429ATT65438EN.pdf>
  12. Transcrime. European Outlook on the Illicit Trade in Tobacco Products. Trento: Transcrime – Università degli Studi di Trento. 2015, p. 1-303.

[1] KPMG LLP. A Study of the Illicit Cigarette Market in the European Union. 2013 Results, p. 188, 17. Access through the internet: <http://www.pmi.com/eng/media_center/media_kit/Documents/SUN%20Report%202013.pdf>

[2] Lithuanian Free Market Institute. Population Attitude Survey towards Smuggling and Consumption of Illegal Goods 2013, p. 2-3. Access through the internet: <http://files.lrinka.lt/Tyrimas_kontrabanda/Report.pdf>

[3] Lietuvos Respublikos Seimo nutarimas „Dėl Lietuvos Respublikos Vyriausybės programos“ (2012 m. gruodžio 13 d. Nr. XII-51)

[4] Lietuvos Respublikos Administracinių teisės pažeidimų kodeksas (Žin. 1985, Nr. 1-1)

[5] Lietuvos Respublikos Administracinių teisės pažeidimų kodeksas (Žin. 1985, Nr. 1-1)

[6] Lietuvos Respublikos Administracinių teisės pažeidimų kodeksas (Žin. 1985, Nr. 1-1)

[7] KPMG LLP. A Study of the Illicit Cigarette Market in the European Union. 2013 Results, p. 21. Access through the internet: <http://www.pmi.com/eng/media_center/media_kit/Documents/SUN%20Report%202013.pdf>

Renata Giedrytė-Mačiulienė

Law Institute of Lithuania