Illegal cigarettes import from Estonia, Latvia evades €2m tax

Finnish Customs detected an incident of suspected tax evasion of about two million euros in illegal import of cigarettes from Estonia and Latvia last year, said Customs in a press release on Wednesday.

Customs together with the Estonian Tax and Customs Board investigated the criminal case where a large amount of cigarettes has been imported from the two Baltic countries in commercial freight consignments for distribution in Finland.

The preliminary investigation is about to be completed and the case will be forwarded to the Prosecution District of Southern Finland for consideration of charges.

As part of the criminal investigation, the authorities seized two freight consignments containing almost half a million cigarettes in total. The seizures are part of a criminal case where it is suspected that a total of around 6 million cigarettes have been imported to Finland on more than 20 occasions between March and December 2022.

Some of the cigarettes seized in the case under investigation have been found to be counterfeit products. No import declarations was lodged and no taxes was paid for the freight consignments, and it is suspected that the tax benefit gained through this amounts to around two million euros.

Illegally imported cigarettes are increasingly being detected in postal and express consignments and within the commercial transport of goods. The goods flows have changed due to the sanctions imposed on Russia, as there has been a considerable decrease in the vehicle and passenger traffic between Finland and Russia.

“Criminals try to make use of legal goods flows in their illegal imports of cigarettes, and based on our controls, these cases are on the increase. International cooperation is important in uncovering professional crime, and in this criminal investigation, our cooperation with Estonian Customs has been particularly important,” said investigator in charge Mari Sarahete.

During the criminal investigation, five persons have been apprehended in Finland and Estonia, and four of them have been remanded in pretrial detention.

The persons are suspected of having participated in the acquisition and sending of the cigarettes from Estonia to Finland.

The investigation has shown that the cigarettes have been distributed in Päijät-Häme and North Karelia, and possibly in other regions as well.

Customs has investigated the criminal case as aggravated tax fraud and unlawful dealing in imported goods.