PMI Calls for Ongoing G2G Dialogues with Source and Transit Countries to Combat Illicit Tobacco Trade

– India faces an annual loss of approximately $1.65 billion, with 25% of the domestic market illicit and an estimated 12,000 jobs lost each year
-Global tax loss from illicit tobacco trade is estimated at $40–50 billion annually, representing around 500 billion cigarettes or 14–15% of global consumption

NEW DELHI, Aug. 1, 2025 /PRNewswire/ — At the recent two-day ASIA Security Conference & Exhibition 2025, Anti-Counterfeiting, Illicit Trade & Brand Protection held in New Delhi, Rodney Van Dooren, Head – Illicit Trade Prevention, Philip Morris International (PMI), stressed on the need for ongoing G2G dialogues with source and transit countries to combat illicit tobacco trade. Addressing the audience, including enforcement agencies, policymakers, security solution providers & brand owners, he highlighted how Illicit tobacco products exploit regulatory gaps and enforcement blind spots across the supply chain, requiring immediate prioritization and inter-ministerial coordination beyond customs to address the issue effectively.

Speaking on ‘The Escalating Illicit Trade – Transnational Issue – Comprehensive Solution’, Rodney Van Dooren, Head – Illicit Trade Prevention, Philip Morris International (PMI), said, “Illicit trade is a pervasive global threat that systematically undermines legitimate businesses, drains public revenues, and exposes consumers to unsafe products. India faces an annual loss of approximately $1.65 billion, with 25% of the domestic market illicit and an estimated 12,000 jobs lost each year. ASEAN countries collectively lose $3–4 billion annually in tobacco tax revenue due to illicit trade.”

“Within ASEAN, Cambodia is identified as a source of counterfeit cigarettes-with India, Thailand, and the Philippines as impacted markets, and Vietnam, Singapore, Thailand, and Malaysia acting as key transit countries,” he added.

The World Health Organization (WHO) Framework Convention on Tobacco Control has identified India as both a transit hub and a key destination for illicit tobacco trade. Smuggling routes span the globe, making this a transnational issue that requires international cooperation.

Global tax loss from illicit tobacco trade is estimated at $40–50 billion annually, representing around 500 billion cigarettes or 14–15% of global consumption. Counterfeit cigarettes present a significant public health hazard, containing as much as 160% additional tar, 133% more carbon monoxide, and harmful chemicals. Further Illicit whites, accounting for over 40% of global illicit cigarette trade, are manufactured for export without compliance to destination country laws.

PMI has long invested in technologies that protect supply chain integrity. As part of its continued efforts to curb illicit tobacco trade menace, the organisation’s strategy focuses on five critical areas- research & intelligence, protecting supply chain, partnerships, stakeholder collaboration and raising awareness. Globally and in India, PMI has contributed significantly over the past decade, partnering with law enforcement and investigative agencies in the fight against trade of illegal cigarettes. PMI brings deep, practical experience from some of the world’s most advanced T&T systems- implemented it voluntarily in 150+ markets worldwide. Across all markets, the outcomes have been consistent: better visibility, stronger compliance, and measurable reductions in illicit tobacco trade.

Sharing his recommendations on effectively addressing illicit cigarette trade, Van Dooren added that a multi-pronged approach is key to break the black-market nexus. For India, this means collaborating with ASEAN on shared challenges, ongoing government-to-government (G2G) dialogues with source and transit countries, enhancing manufacturing and export policies, and implementing robust tracking and tracing for all tobacco exports.

At the ASEAN Bloc level focus on formation and activation of the joint task force, expanding collaboration to India and ASEAN dialogue partners, enhancing manufacturing, export, transit/transhipment, and Free Trade Zone (FTZ) regulations to ensure compliance with market of consumption. Additionally, G2G transparency and coordination on suspicious shipments, and collaboration with private sector is essential.

Philip Morris International: A Global Smoke-Free Champion

Philip Morris International is a leading international consumer goods company, actively delivering a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector.

For more information, please visit www.pmi.com and www.pmiscience.com.

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