Dealing with smuggling

Preventing cigarette and tobacco smuggling

Preventing cigarette and tobacco smuggling has been one of OLAF's core activities for many years.

In 2022, OLAF’s operations led to seizures of over 531 million illicit cigarettes, including 199 million cigarettes confiscated at the EU's external borders and 317 million cigarettes produced illegally at sites across the EU. Moreover, information uncovered by OLAF led to the confiscation of 209 tonnes of raw tobacco destined for the illicit production of cigarettes. OLAF played an instrumental role in identifying and closing down over 10 factories, which produced counterfeit cigarettes in the EU. All in all, 77 smugglers were arrested during the year and over 15 illicit cigarette producing factories were dismantled.

These seizures prevented an estimated €153 million in lost revenue in the EU.

In 2022, OLAF also continued to be active on water pipe tobacco smuggling and identified suspicious consignments of over 66 tonnes. One such case spanned the European continent from Türkiye to Scandinavia.

Fighting waterpipe tobacco smuggling

Working with Member States’ customs authorities, OLAF identified a truck loaded with 20 000 kg of waterpipe tobacco leaving Türkiye destined for Denmark, which aroused suspicions when it became clear that the consignee company in Denmark was bankrupt and had never had a licence to trade tobacco products.

Following this discovery, OLAF coordinated the surveillance activity of the consignment with several Member States along the so-called “Balkan Route” and in four Western European Member States. As a result, it was possible to monitor the movements of the tobacco over an 11-day period. Eventually the truck delivered the waterpipe tobacco to a warehouse belonging to an organised criminal group.

Members of the customs authority raided the warehouse seizing the waterpipe tobacco as well as the truck, several cars and prohibited items, arresting four suspects in the process.

Shattering the illegal trade in glass eels

Several OLAF activities have an environmental impact. One of them is OLAF’s work to prevent the smuggling of animal and plant species. One such operation in which OLAF participated was ‘Operation Lake’, which started in November 2021 and ended in June 2022 under the coordination of Europol. The operation concerned the suspected illegal trade of critically endangered glass eels (baby eels).

OLAF provided operational and technical support and acted as a central point for the coordination of secure information exchanges among law enforcement authorities from 24 countries across the EU and beyond.

During the operation, 27,701 inspections were carried out across Europe as well as 1,255 kilograms of glass eels were seized, and 49 people were arrested.

Combatting the illicit trade in counterfeit semiconductors

Semiconductors are an increasingly crucial commodity. Semiconductors are found in almost every machine including cars, trains, planes and automobiles. They are also integral to many industries including defence and communication. Therefore, it is easy to see how counterfeit semiconductors can potentially cause enormous damage not just to consumer health and safety, but also potentially to national security and society at large.

Over 1 trillion microchips were manufactured around the world in 2021 and the demand is continuously rising. However, global chip shortages in 2022 forced factory closures in a range of sectors, from cars to healthcare devices. This means there is an increased reliance on the semiconductor chain, which is made up of a small number of producers often based in hard to reach parts of the world.

Given this mounting international concern, OLAF is focusing on enforcement initiatives related to semiconductor counterfeiting and fraudulent activity. OLAF is in close contact with Member States and third-country enforcement authorities, as well as industry stakeholders, to address illicit trade trends. OLAF follows up on specific reports of entries into the EU of semiconductors allegedly infringing IP rights and/or presenting a threat to public health and safety.

Fighting the trade of illegally harvested timber

Another important area where OLAF intervened with its investigative and coordination actions was the import of protected wood, specifically timber.

The EU Timber Regulation outlined the obligations of operators who place timber and timber products on the market to counter the trade of illegally harvested timber and timber products. OLAF's investigative work in this area has contributed to prevent the placement of illegally harvested timber and products derived from such timber on the EU market.

Eliminating the pest of the pesticide smuggling

Pesticides can contain substances that are dangerous for the environment, humans and the food chain. In its worst form, unauthorised pesticides can cause serious illness and death of humans or of pollinating insects, which seriously endangers food security.

Forbidden and highly controlled plant protection products have been smuggled into the EU by abusing customs procedures for a long time. In the last years, OLAF identified a new trend, which consists in disassembling the products into individual components that travel separately across the world and arrive at different points in the EU to be assembled locally in illegal factories.

OLAF also detected pesticides, which were misdeclared as fertilizers and cleaning products. High market prices driven by supply shortages (due to Covid) and faltering income levels (because of the energy crisis) have created a perfect storm that pushes individuals and companies to look for a cheaper alternative in purchasing pest control products.

Tackling illicit imports of refrigerant gas. And the award goes to…

Refrigeration is an essential part of everyday life, from chilling food to use in homes and offices. However, because the gases used in this process are potent greenhouse gases, since 2014 their use has been phased out in the EU and a quota was set to limit the amount that companies can import. As a result, there has been a corresponding rise in black market activity related to these substances.

Over the years, OLAF has played a leading role in tackling this black market trade working with partners across Member States and beyond. In 2022, OLAF took part in several joint actions with these partners in supporting investigations, which led to significant seizures and a reduction in illegal shipments.

For example, alongside the Guardia Civil, Spanish Customs and Europol, OLAF took part in ‘Operation Marum’ which successfully targeted a sophisticated Spain-based criminal network suspected to be involved in the illicit import and trade of refrigerant gases. The Operation led to the dismantling of the gang, the arrest of 27 people (including the leaders) and the seizure of 110 tonnes of different types of harmful gases, valued at €11 million. Searches of premises linked to the gang also uncovered €364 000 in cash, 435g of cocaine and 435 ecstasy tablets.

In recognition of its strong commitment to address illegal or unwanted trade in ozone-depleting substances and fluorinated global warming substances controlled under the Montreal Protocol and its Kigali Amendment, in March 2023 OLAF was awarded the prestigious Montreal Protocol medal.