He illicit cigarette trade It continues to represent a challenge for the formal industry in the Dominican Republic, despite the recent advances in its fight.
According to the Ministry of Industry, Commerce and MSMEs (Micm), currently there are no illegal active factories identified in the country; However, in February of this year a clandestine operation was dismantled in La Guáyiga, Pedro Brand municipality, where they occurred counterfeit cigarettes and alcoholic beverages.
In the search, led by the specialized body control body and merchandise trade (CECCOM) and the Prosecutor’s Office of Santo Domingo Oeste, 41,800 units of cigarettes of the “Red brand“With evidence of falsification, in addition to machinery, raw material and labels. Two people were arrested and the case continues in Judicial process.
Mario Pujols, Executive Vice President of the Association of Industries of the Dominican Republic (AIRD), said that illicit trade was shot from the tax increases established in the Tax Reform of 2012 (Law 253-12), causing, from 2012 to 2024, the Legal volume of cigarettes It fell about 70 %.
“Aware of the power that the authorities have to carry out investigations and execute confiscation actions throughout the national territory, The Aird It has a constant communication channel with the authorities for any type of complaint or measures to recommend, which we do with some frequency, “said Pujols in response to Free newspaper.
He said that The Aird Participate in the Public-Private Inter-institutional Council created by Law 17-19, which has promoted training and improvements in control equipment.
Smuggling impact
Instead, Andrés Espinal, director of corporate affairs of Philip Morris Dominicanaindicated that around 30 % of the market cigarettes In the country it is still illegal, although it has decreased in recent years by the actions of the authorities.
He stressed that these products lack fiscal stampthey evade taxes, do not comply with health warnings or the information required by law, and that their commercialization is linked to organized crime and money laundering.
“This informality has effects both on the industry and in the same consumers and society. We talk about products that do not have the fiscal stamp which guarantees the payment of taxes and, therefore, evade all taxes, affecting state collections, “he said.
- In addition, he said that The illicit product It does not have the proper information of the brand representatives in the country, which also do not have manufacturing or import licenses (the one that applies), issued by the General Directorate of Internal Taxes.
“We can’t stop highlighting that all this illegal marketing It keeps a close relationship with organized crime, with money laundering and other implications that threaten national security, “said the Executive.
The Micm He assured that registered companies have been detected that produce cigarettes outside The legal parameters and that maintains active cooperation with the General Directorate of Customs (DGA) and the General Directorate of Internal Taxes (DGII) to identify inconsistencies between declared production and sales, thus reinforcing traceability and transparency in sensitive sectors such as tobacco, alcohol and medicines.
