They thought they were getting a good deal but paid a ‘higher price’ for contraband cigarettes

SINGAPORE – Operating in the shadows and behind parked lorries was not the perfect cover a group of contraband cigarette sellers thought it was as they were caught peddling the illicit goods last Wednesday evening.

Singapore Customs officers who were observing the five peddlers near Tuas Avenue 1 and Mandai Estate apprehended them without giving them the chance to escape.

In total, 53 cartons and 15 packets of duty-unpaid cigarettes were seized at the two locations.

The total duty and goods and services tax (GST) evaded amounted to about $5,352 and $482, respectively.

A total of 3.3kg of chewing tobacco was also seized.

Five male Bangladeshi nationals aged between 20 and 37 were arrested for peddling the contraband cigarettes.

An hour before Singapore Customs officers carried out the night ambush in Tuas, The Straits Times was allowed to observe the proceedings from a safe distance.

As migrant workers returned from work to their dormitories near Tuas Avenue 1, two peddlers and their lookout began to “set up” shop at about 7.30pm.

Workers were seen briefly disappearing behind three parked lorries on a dark road to make their purchases before quickly emerging on the main road once again and walking to their dorms.

A lookout was positioned nearby to alert the peddlers if the authorities showed up.

But at 8.30pm, two Singapore Customs officers walked up to the farthest parked lorry, while other officers rushed towards the vehicles.

The evidence collected at the site showed that the peddlers were well stocked.

In the nearby bushes, officers found a cardboard box containing 45 cartons and 10 packets of duty-unpaid cigarettes, along with 3.3kg of chewing tobacco hidden in red plastic bags.

For one migrant worker in Tuas, who was caught that night, the lure of cheap smokes was too hard to resist.

The man, a 39-year-old work permit holder who did not want to give his name, told ST he knew the risks.

The man, who has been working in Singapore for the last six years, said: “I make $18 a day, and if I buy legal cigarettes, they cost about $14 a packet.

“To save money, I have been buying illegal cigarettes for the last one month. Each week, I buy two packets for $5 each.”

As it was the second time the man was caught buying contraband cigarettes, he was issued a composition fine of $1,000 when he was caught on Wednesday with two packets.

Since February, smokers in Singapore have had to pay more for a packet of cigarettes after a 15 per cent tax hike for all tobacco products.

Today, a packet of premium cigarettes sold at a coffee shop can cost as much as $16.

A survey was conducted by market research firm Milieu to gauge smokers’ sentiments after the excise hike this year.

There were two rounds to the study, with the first one conducted one month after the excise hike and the second one half a year later.

In the second round, the survey found 44 per cent of smokers wished to switch to cheaper cigarette brands or variants.

In both rounds, 31 per cent of smokers indicated their intention to switch to alternative products. Among them, 79 per cent said they intended to switch to e-cigarettes or e-vaporisers.

In the second round of the study, 26 per cent of smokers said they intend to buy cheaper cigarettes from alternative sources such as duty-free, online and messaging platforms – higher than the 21 per cent in the first round.

Singapore Customs figures show that 4,963 duty-unpaid cigarette offenders were apprehended in 2021, and 7,869 in 2022. The half-year figures for 2023 show 6,300 offenders.

In 2022, 2.16 million packets of duty-unpaid cigarettes were seized. A total of 1.36 million packets were seized in the first half of 2023.

Mr Chua Teck Hui, head of the Suppression and Community Engagement Branch at Singapore Customs, told ST that some of the migrant workers may be tempted to peddle or buy duty-unpaid cigarettes to make a quick buck or save money without fully realising the risks involved.

He said: “We actively monitor areas where peddling activity is observed or suspected. We also work closely with dormitory operators and other agencies to reach out to and educate the migrant worker community.”

Under the law, it is illegal to buy, sell, deliver, store and possess duty-unpaid goods. Offenders can be fined up to 40 times the amount of duty and GST evaded and/or jailed for up to six years.