More than 1 million contraband cigarettes with a value of more than $665,000 were recently seized following an investigation by Alberta Gaming, Liquor & Cannabis (AGLC). The total potential lost tax revenue is estimated to be more than $292,000.
The seizure took place at a storage facility in central Edmonton. Jian Wang of Edmonton was charged with trafficking in contraband tobacco contrary to section 121.1 of the Criminal Code of Canada. The accused is scheduled to appear in Edmonton Provincial Court on February 17, 2021.
- is any tobacco product that does not comply with federal and provincial laws related to importation, marking, manufacturing, stamping and payment of duties and taxes;
- comes from four main sources: illegal manufacturers, counterfeits, tax-exempt diversions and resale of stolen legal tobacco; and
- can be recognized by the absence of a red (Alberta) or peach/light tan (Canada) stamp bearing the “DUTY PAID CANADA DROIT ACQUITTÉ” on packages of cigarettes and cigars or pouches of tobacco.
In addition to lost revenues that may otherwise benefit Albertans, illegally manufactured products also pose public health and safety risks as they lack regulatory controls and inspections oversight.
All wholesalers and importers of tobacco into Alberta must be licensed to sell or import tobacco for resale. Furthermore, all tobacco products must be labelled according to federal and provincial regulations. Albertans who suspect illegal tobacco production, packaging and/or trafficking are encouraged to contact AGLC’s Tobacco Enforcement Unit at 1-800-577-2522.
Under a Memorandum of Understanding with Alberta Treasury Board and Finance, AGLC enforces the Tobacco Tax Act and conducts criminal investigations of contraband smuggling. In 2019-20, provincial revenue from tobacco taxes was $805 million.
Contraband photo 1
Contraband photo 2