Asean countries asked to work together to stop illicit tobacco trade
Rodney Van Dooren, an expert on regional illicit trade for Philip Morris International (PMI)
MANILA, Philippines – Members of the Association of Southeast Asian Nations (ASEAN) should work together to stop the spread of illegal tobacco trade which has been harming legitimate businesses in the region, according to international experts.
The experts made the call during the National Tobacco Administration’s Second International Tobacco Summit, emphasizing the need for a regional and holistic approach to address the growing crisis.
Rodney Van Dooren, regional illicit trade expert for Philip Morris International, highlighted the cross-border nature of the illicit tobacco trade and the importance of cooperation among ASEAN nations.
“Local law enforcement in the Philippines is making great strides in shutting down illicit tobacco operations, but this needs constant attention as new threats are always emerging. What I want to emphasize today is that according to trade data and news articles in the Philippines, most non-compliant cigarettes in the Philippines originate from ASEAN countries and India, and from China for non-compliant e-cigarettes,” said Van Dooren.
He outlined key recommendations, including compliance with destination market regulations, harmonization of transit country regulations, leveraging international trade agreements, and expanding cooperation beyond customs authorities.
Article continues after this advertisement“An export without a corresponding import should trigger international cooperation,” Van Dooren said, as he called on ASEAN nations to adopt a shared responsibility framework. He also emphasized using platforms like the World Customs Organization and World Trade Organization to facilitate enforcement.
Article continues after this advertisementVan Dooren noted that the Philippines has implemented several measures, including a Bureau of Internal Revenue whitelist of approved manufacturers, importers, exporters, and brands; a temporary ban on online sales of e-cigarettes; and amendments to the Anti-Agricultural Smuggling Bill to include tobacco products.
Despite these efforts, illicit trade persists due to high demand and price gaps between legal and illegal products. “It’s really about supply and demand—once there is demand, there’ll be supply,” Van Dooren said.
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Australian security expert Rohan Pike, who has studied illicit tobacco markets globally, echoed this view. In a May 2024 interview with ABC 黑料社, he pointed out that Australia’s high tobacco prices have fueled a black market dominated by organized crime.
“The number one driver of the problem is the enormous price of tobacco,” Pike said, noting that even law-abiding citizens turn to illicit products when prices reach extreme levels. Speaking at the summit, Pike emphasized that government action should not rely on seizures alone. “Simply seizing tobacco and illicit products is not nearly enough. Seizures have no relevance whatsoever in stopping an illicit market,” he said.
NTA Administrator Belinda Sanchez also cited the need for a holistic approach. “The increasing illicit trade in tobacco is a growing concern, undermining our efforts and threatening the livelihoods of countless individuals,” she said. “We need a holistic approach to tackle this problem, one that addresses not just the symptoms but also the root causes. A multifaceted approach that combines regulation, education, and community engagement.”
The NTA said the illicit trade adversely affects the livelihoods of 2.2 million Filipinos, including over 430,000 farmers and farm workers.
