Contraband Tobacco

Contraband tobacco can be recognized by the absence of a red (Alberta) or peach/light tan (Canada) stamp bearing the words “DUTY PAID CANADA DROIT ACQUITTE” on packages of cigarettes and cigars or pouches of tobacco.

• Contraband tobacco packaging does not contain health warnings in accordance with Health Canada regulations.
• Contraband tobacco packaging may also come in odd sizes, unusual brand names and printed with bright colours. Under federal tobacco regulations, legal cigarettes are required to be printed in plain and standardized packaging.

In the past five years, AGLC has seen a significant rise in contraband tobacco activities in Alberta. During that same time, Alberta has seen a drop of more than $500 million dollars in tobacco tax revenue. This loss of tax revenue impacts funds going towards health care, public safety and essential services that all Albertans use on a day-to-day basis. 

Given the financial situation that some Albertans are facing, people are turning to cheaper alternatives for tobacco that includes contraband cigarettes.

Illegally manufactured tobacco products pose public health and safety risks as they lack regulatory controls and inspections oversight. Contraband tobacco products lack self-extinguishing filters that increase the risk of personal injury and property damages due to fires. 

Contraband tobacco can be distributed by anyone, but it is primarily being done by individuals or groups related to organized crime across Canada.

Once the court process is completed, all seized contraband tobacco products are destroyed.

Under the Alberta Tobacco Tax Act, fines for possessing or selling contraband tobacco can range from $300 to $1200 under the Specified Penalty Listing. Based on the quantity of contraband tobacco seized, an individual or group can face charges resulting in mandatory court appearances pursuant with the Tobacco Tax Act or Criminal Code of Canada. Penalties for those offences may include jail time and the possibility of receiving fines of three times the tax avoided.

Under a Memorandum of Understanding with Alberta Treasury Board and Finance, AGLC enforces the Tobacco Tax Act and conducts criminal investigations related to the possession, distribution and trafficking of contraband tobacco products.

The vast majority of contraband tobacco products being sold in Alberta are manufactured in underground facilities in provinces including Ontario and Quebec and then shipped west.

Albertans who suspect illegal tobacco production, packaging and/or trafficking are encouraged to contact AGLC’s Tobacco Enforcement Unit at 1-800-577-2522. If you wish to remain anonymous, please call Crime Stoppers at 1-800-222-TIPS (8477).