WAA AIT OverviewC TCape Town
12th November 2013Muhammad AdamA H d AITArea Head AIT
BAT WAA
How IT operates in WAAHow IT operates in WAAFour Principle PortsFour Feeder RoutesFeeding a Network
4 main entry doors (Nouakchott, Conakry, Lome & Cotonou)
Key illicit brands : Ronson Monte CarloKey illicit brands : Ronson, Monte Carlo
Gold Seal, Business Royals, Bond, YES, American Legend, Capital, and host of other Cheap whites
Outflow to Mali through GK and BF, Nigeria through Niger, CDI through BF and beyond
Porous Borders
Lack of good governance results in endemic corruption.
Poor controls for goods in transit.
AIT Operational structure WAA evolution
Muhammad AdamArea Head AIT
SUPPORT
Yakubu Uba AIT mngrNigeria
AIT Investigations/ Operations Manager
External
Stakeholders
Halogen Investigators
Nigeria
Law Enforcement Agencies
NestorBenito
S i P idService
dService ProviderCameroun
Providers:2 Benito1 Cote d voire1 Mali
Sayon TroareM li
InvestigationsNiger
Ihuoma ChutaIntelligence Analyst
Mali
4 Pack Analyst
ClementGhana4 Pack Analyst
Some of our challengesSome of our challengesgg
Draconian regulation Unpredictable excise Spike in illicit
i R f iPLL Vi d Insecurity Return of concessionsPLL Virus spread
Insecurity Insecurity yyCaused difficulty in enforcement reversing gains on last 2years successes, IT incidence down from around 23% to 17% pre crisis but now around 35% in Mali
BURKINA FASO
NIGER
NIGERIA
CAMEROUN
InsecurityInsecurity
Mali MarketKeys FactsMarket size: 2,325 mn sticks y
Only cigarettes manufactured or imported through Sonatam (ITG State monopoly) should be sold in Mali.
,
Illicit trade inc: 35%
Key Players:
Cigarette packs must have “For sale in Mali” written on them
y yLegal‐ ITG (Liberte), PMI (Marlboro)
‐ Illegal : Ronson & Monte Carlo Other illegal competitors: Gold Seal,
Illicit product flowing in from Guinea Conakry therefore easily identifiable
Ronson and Monte Carlo represent major illicit
American Legend, Boss & Oris
Ronson and Monte Carlo represent major illicit operator with DNP product of circa28% out of 35 % total illicit trade.
IT products widely visible in market openly sold andIT products widely visible in market, openly sold and ‘normal’ product to the trade and consumers
DABANANI MARKET VIEWDABANANI MARKET VIEW
Market concentration of distributors and retailers of cigarettes
We embarked on Major campaign to de normalise IT in order to aid enforcement working with our partners in Government
CAMPAIGN SUPPORTS
CAMPAIGN SUPPORTS
TV CAMPAIGN: TV CAMPAIGN: Emission "Emission "itit isis discusseddiscussed""
THEME: "illicit tobacco trade"THEME: "illicit tobacco trade"
Guests (from left to right):Mahamane Assoumane TOURE / National Director of Trade and CompetitionMiten OUFFENE Ag / Representative of the Directorate General of Customs
Niazi COULIBALY / Journalist ORTMMs. Diallo DIAKITE / Pdt Network NGOs and the Fight against tobacco
THEMETHEME: ": "illicitillicit tobaccotobacco tradetrade""TV CAMPAIGN: TV CAMPAIGN:
Diffusion PAD in the TV show: Message from Diffusion PAD in the TV show: Message Diffusion PAD in the TV show: Message from Mr Mahamane Assoumane TOURE /National Director of Trade and Competition
Diffusion PAD in the TV show: Message from MrModibo Keita Kane / Deputy Director of Customs Now DG
Field Teams were Deployed
TRADE FORUMS
SIKASSO
TRADE FORUMS
KAYES
TRADE PROXIMITY CAMPAIGNIn 3 cities (Bamako, Sikasso, Kayes)
PRESS CAMPAIGN
We Lost all the gains in one Go
We now are starting afreshWe now are starting afresh
Customs official showing seized rolls of Ronson
Rolls of Ronson & Monte Carlo being off loaded into a pickup.
Customs officials visit to a convenience shop.
Examples of DRCC raids Octobre 2013
Examples of DRCC raids Octobre 2013
PUBLICITY PUBLICITY ‐‐ PRESS CUTTINGSPRESS CUTTINGS
Journal Le Combat Journal L’ Indicateur du Renouveau
PUBLICITY PUBLICITY ‐‐ PRESS CUTTINGSPRESS CUTTINGS
SUMMARY OF THE DAILIES REPORTThe tobacco industry through SONATAM was the pride of Malians since Independence in 1960. The tobacco industry continues to play an important role in the continues to play an important role in the Economy, in spite of the incidence of illicit tobacco trade.In 2011 for example the revenue contribution of legitimate tobacco industry to National revenue was estimated to be 17 million CFA But for the increase in the million CFA. But for the increase in the incidence of illicit tobacco trade which is estimated to be around 28% to 38%, the legitimate industry’s contribution to National Revenue could have been far in excess of 17 million CFA this year.A f th f t th t illi it t d i Aware of the fact that, illicit trade in any form undermines economies and by extension governments. British American Tobacco in collaboration with Ministry of Industry, Investment and Commerce as well as other Security agencies embarked on
k d kJournal Le Jour
market raids in 6 communities in Bamako to rid the city of this scourge.Smuggling is a criminal activity which deprives the government fiscal resources ( billions of CFA ) every year to better the lot of its people. Monies that accrue to these
SUMMARY OF PRESS CLIPPINGSThe fight against the illicit cigarette trade far exceeds the capacity of one country or one region. It requires international cooperation to track and dismantle the networks of fraud and smuggling. For this reason the Malian customs authorities
criminals are used to finance terrorist activities as well as destabilize legitimate governments in West Africa in particular and the World as a whole.
should request from their counterparts in Guinea to increase their awareness about the fraudulent import of brands such as RONSON and MONTE CARLO: it appears that the import of these brands by far exceed the required market demand of Guinea market and the surplus is irresponsibility exported into Mali as contraband
SUMMARY OF PRESS CLIPPINGSThe fight against the illicit cigarette trade far exceeds the capacity of one country or one region. It requires international
i k d di l h k f f d dcooperation to track and dismantle the networks of fraud and smuggling. For this reason the Malian customs authorities should request from their counterparts in Guinea to increase their awareness about the fraudulent import of brands suchtheir awareness about the fraudulent import of brands such as RONSON and MONTE CARLO: it appears that the import of these brands by far exceed the required market demand of Guinea market and the surplus is irresponsibility exported intoGuinea market and the surplus is irresponsibility exported into Mali as contraband
DRCC Warning Letter to Wholesalers
• This is a letter of notice to• This is a letter of notice towholesale giving a monitorium of6 month after which all noncomplaint Products without theNHWwill be seized. This will be 1stof March 2014
In the Mean timeCombine Action DRCC & Customs carries on at specific locationsCombine Action DRCC & Customs carries on at specific locations
It’s a hard road but we willIt s a hard road but we will continue to tread till we
reach our goal getting ride of ITIT
Until then, Until then, 3 Building Distinct Brands3 Building Distinct Brands3. Building Distinct Brands3. Building Distinct Brands