| bacco-related news: Recent reports in several media | | | | the stuff every year) say it’s coming from the |
| outlets throw some light on the deepening problem that | | | | United States. More specifically, they trace some of |
| illegal small cigar factories, known as chinchals, pose | | | | the tobacco to the Akwesasne Mohawk reserve near |
| for the Cuban government. It turns out that other | | | | Ontario, which extends across the US-Canada border. |
| United States neighbors face similar problems in | | | | Thus the problem with enforcement: the tobacco is |
| managing the flow of tobacco. | | | | coming from a place that crosses national boundaries, |
| A flurry of news reports suggests that Canada is | | | | and has a certain amount of limited freedom from |
| having trouble controlling contraband tobacco--generally | | | | both. Several levels of a couple different governments |
| tobacco either stolen from producers or sold | | | | need to be enlisted in any effort to significantly reduce |
| off-the-books in order to avoid the country’s | | | | the tobacco influx … as well as, most likely, a |
| high tobacco taxes. The scale of the problem? No | | | | study of who is producing this tobacco, and what |
| one’s entirely sure, but one of the largest | | | | economic, social or legislative changes might reduce |
| Canadian tobacco companies has suggested that | | | | their incentive to do so. |
| untaxed revenue from contraband tobacco is costing | | | | In the meantime, say critics, the Canadian government |
| the country billions of dollars. And in a recession, | | | | could at least prohibit sales of tobacco products such |
| that’s not chump change. | | | | as rolling papers to those who don’t, you know, |
| The same study (funded by industry groups) found | | | | have a license to make or sell tobacco products. |
| that up to thirty percent of the tobacco used in | | | | In any case, news reports don’t mention a |
| Canada is illegal. That number balloons to forty or fifty | | | | widespread illegal-cigar tobacco problem. And cigars |
| percent in places like Ontario and Quebec. | | | | do indeed represent a less attractive option for |
| One reason this is a serious issue is such tobacco, | | | | counterfeiters. Cigar aficionados are looking for |
| often sold on the super-cheap in bulk to consumers for | | | | better-quality cigar tobacco, and part of the reason for |
| a rate that amounts to pennies per cigarette, does not | | | | growing illegal cigar tobacco is that you don’t |
| have to clear any health, safety, or quality control | | | | have to do quality control. Also, chopped-up cheap |
| boards. | | | | tobacco is easier to transport and hide than the full-leaf |
| In addition, the larger the trade gets, the bigger the | | | | kind that tends to make a great cigar. Illegal |
| revenue that the government misses out on | | | | cigar-making tends only to happen in cases where |
| taxing--which creates big problems for a society with | | | | there’s a strong incentive to do so, as in Cuba |
| such a generous tradition of social spending. It also | | | | … and people don’t exactly stream |
| means lower sales for convenience stores and other | | | | across the border for these great Canadian cigars. |
| legitimate businesses, not to mention the tobacco | | | | Still, in a troubled economy, how long before we can |
| companies themselves, who figure their lost revenue | | | | expect to see similar problems arise in the other |
| at nine hundred million. | | | | areas? In the meantime, the Canadians’ |
| Where is this tobacco coming from? The Royal | | | | problem is one more reason to buy cigars from a |
| Canadian Mounted Police (who seize large amounts of | | | | trustworthy, known source. |