Korean Tobacco Maker Urged to Cut Illegal Cigs

Billions of pine brand cigarette sticks have long been smuggled into Pakistan, most likely from the neighboring Afghanistan, revealed industry sources latest data here on Tuesday. They told Business Recorder that the amount of smuggled pine cigarettes was so substantial that it prompted Pakistani authorities to formally complain to the Korean government and KT&G last year. The KT&G, the nation's leading tobacco maker, exports to 45 countries, including four countries in the Middle East - Afghanistan, the United Arab Emirates (UAE), Iraq and Iran - through the firm's regional offices and UAE-based importer Alokozay International. The company does not have any official dealer or representative office in Pakistan. A pack of 20 cigarettes is said to be sold at around Rs 30 (400 won). Sources said tobacco maker was made aware of the smuggling when Pakistan Embassy in Seoul raised the issue with Korean Ministry of Strategy and Finance in April 2011. A meeting was arranged between the embassy and the tobacco maker. There are two reasons why the Pakistani government is concerned with the large-scale smuggling of pine cigarettes: loss of tax revenue and the lack of health warnings on the cigarette packs. Pakistan's tobacco regulations require the packs be printed with health warnings using visual images or pictures. The company says that it complies with the regulations of each country it exports to Iran, for example, demands pictorial warnings while there is no warning requirement for Afghanistan. That is one of the reasons why the pine brand cigarettes available in Pakistan are suspected to have come from Afghanistan. The company mentioned the possibility of fake pine brand cigarettes being manufactured locally. Last year, Secretary Ministry of Health has addressed a letter to the Commercial Counsellor Embassy of Pakistan in Seoul on the smuggling of pine cigarettes. As per letter, though, the brand "Pine" of 20 cigarettes pack is freely available in the market, but it is smuggled and not imported legally. Government of Pakistan is unable to take action against the unknown supply chain. However, the point made by the Secretary Health is relevant in the sense that "Pine" brand, which is manufactured by the Korean company for export abroad does not carry any health warning, Ministry added. Last year, the Commercial Counsellor of Embassy of Pakistan in Seoul had informed the Ministry of Finance of Korea that nearly 500 million cigarettes of "Pine" brand of Korea were smuggled into Pakistan annually and they did not comply with pictorial health warning laws ie they did not carry any health warning.