Tobacco Smuggling: Legal Response to the Eastern European Inflow

Cigarette smuggling is an important part of the illicit cigarette trade in the European Union. The most frequently cited reason for smuggling is a significant difference in cigarette prices resulting from the large share of customs and taxes (primarily the excise tax) in cigarette prices. The magnitude of this phenomenon in a given country depends, among other things, on its geopolitical location and its legal, economic and social conditions. Poland, taking into account its geopolitical location, is one of the EU countries that are crossed by “transit routes” for cigarette smuggling, including the route across the EU’s internal border between Poland and Lithuania. At the same time, it is a country where smuggling detection rates are high. Customs control by customs administration bodies based on risk analysis, supported by international exchange of information, and their cooperation with other entities on the national, European, and international level are of particular importance in this regard. The main objectives of the article are to identify the legal arrangements for customs control as the primary guarantor of compliance with the prohibitions and restrictions on international trade in goods and to assess its impact on the rates of detection of cigarette smuggling.