German customs have seized almost 50,000 illegal disposable e-cigarettes in Stuttgart. It is the largest seizure so far in Germany. Now customs police fear a new wave of organized crime focused on disposable vapes.
(Updated March 2023)
48100 disposable cigars, without proper German markings, were crossing the border between France and Germany. The driver of the van carrying the goods was under the influence of drugs and claimed he was transporting the goods "for a friend". He is now suspected of both illegal driving and planned tax evasion, reports eGarage industry magazine.
New tax on nicotine liquid
This is not the first time that customs police in Germany have seized so-called 'disposable weapons' on their way across the border. Most recently, in August this year, 28,000 devices were caught in customs nets near Göttingen. Both customs police and industry associations in Germany suspect that the recently introduced tax on nicotine liquid, along with the popularity of the new disposable models, is contributing to the increase in smuggling.
Attracting criminals
Police seized disposable e-cigs already last spring, even before the tax, but in much smaller quantities.
"Now e-cigarettes are becoming an easy 'startup' in criminal circles," says Frank Buckenhofer, President of the German Customs Police Union to eGarage.
Taxes lead to dangerous price differences
The percentage of smokers in Germany is high, close to 28%. 2% of the population are vejp users and e-cigarettes are regulated under the TPD, the European Tobacco Products Directive. The TPD is intended to harmonize the market for e-cigarettes within the EU, but currently there is no framework for taxation. This means that the price of e-liquid differs enormously between countries. And that worries the president of the German customs union.
"The greater the price difference between legal goods and illegal goods, the greater the returns for criminals. This makes it all the more attractive for organized crime to set up appropriate structures. It is ten times easier and more rewarding, as well as safer, to engage in smuggling than to rob a bank. Those already on the black market are now expanding their range in terms of models and quantity. And that leads to big problems." says Frank Buckenhofer to eGarage.
Similar developments in Sweden
Since 1 July 2022, the tax on e-liquid in Germany is €0.16 per milliliter. This is equivalent to SEK 1.7 per ml. In Sweden, there are two taxes on e-liquid with nicotine: 2 SEK per ml if the concentration is below 15 mg/ml. More concentrated e-juices of up to 20 mg/ml are taxed at twice that rate - SEK 4 per ml. In Sweden, there are also signs that sales of illegal disposable models often takes place in a black market, partly via physical stores but also via social media, where young people are the main target group.
