Key Points
Australian Border Force seized 1.77 million illicit cigarettes worth AUD $3.94 million in evaded duty.
Victoria invested AUD $13.4 million to triple tobacco inspectors with new closure powers.
EU loses €13 billion annually as organized crime operates factories in almost every member state.
Fragmented enforcement across jurisdictions allows criminals to exploit regulatory gaps and data shortages.
Australia’s Border Force seized more than 1.77 million illicit cigarettes and 504 kilograms of loose-leaf tobacco during a coordinated operation across Western Australia and the Northern Territory between August 24 and 29. The operation, called TEMPEST, targeted 66 locations including retailers, storage facilities, and postal depots. Law enforcement identified 66 persons of interest and applied for 15 temporary shop closures, with estimated duty evaded reaching approximately AUD $3.94 million.
What Operation TEMPEST uncovered
The Australian Border Force’s National Disruption Group coordinated the multi-phase operation using intelligence from Commonwealth, state, and territory agencies. Officers seized 9,500 vaping devices, 6,310 nicotine pouches, and illicit substances valued at over AUD $814,000. The operation targeted diverse business fronts suspected of selling or storing illegal tobacco, including tobacconists, barbers, clothing stores, restaurants, and motor dealerships. Border Force also screened 22 international flights into Perth for travelers attempting to smuggle illicit tobacco.
Victoria tightens enforcement with new closure powers
Victoria’s government enacted new laws giving Tobacco Licensing Victoria and Victoria Police authority to shut down illegal tobacco operators immediately. Businesses ignoring closure orders face fines up to AUD $2.5 million and 20 years imprisonment. The state has already seized more than AUD $10.6 million in illicit products and issued over 100 infringement notices. This year’s budget invests AUD $13.4 million to triple the number of inspectors targeting illegal operators.
Organized crime networks expanding across Europe and Australia
The European Court of Auditors reported that almost one in 10 cigarettes in the EU are produced illicitly or smuggled, causing an estimated €13 billion in annual tax revenue loss. Organized crime gangs are moving production inside the EU to shorten supply chains and get closer to consumers. Police in Belgium dismantled a factory operating around the clock with 50 workers producing 1 million cigarettes per hour across four production lines. A Spanish raid seized 3 million cigarette packs valued at €15 million and arrested 20 people.
Regulatory gaps hinder coordinated response
The EU’s fragmented enforcement approach prevents unified standards, with finance and health ministries splitting responsibility across member states. Data gaps and uncoordinated policies allow criminals to exploit weaknesses in supply chain tracking and customs enforcement. The auditors demand Brussels establish a unified strategic framework and standardize market monitoring by 2029 to address the growing threat from unregulated nicotine products and illegal manufacturing sites.
Final Thoughts
Australia’s coordinated enforcement action signals intensifying pressure on illicit tobacco networks, but fragmented policies and data gaps across jurisdictions continue to hamper efforts. The scale of organized crime involvement—from factory operations producing millions of cigarettes hourly to cross-border distribution networks—requires sustained investment in inspectors, intelligence sharing, and tougher penalties.
FAQs
Border Force seized 1.77 million illicit cigarettes, 504 kg of loose-leaf tobacco, 9,500 vaping devices, and 6,310 nicotine pouches across WA and NT between August 24-29.
Businesses ignoring closure orders face fines up to AUD $2.5 million and 20 years imprisonment. Landlords can also terminate leases based on the orders.
The EU loses approximately €13 billion annually to illicit tobacco trade, with nearly one in 10 cigarettes produced illegally or smuggled.
Criminal networks are relocating production inside the EU to shorten supply chains, get closer to consumers, and operate in border regions to evade detection.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
About Author

Huzaifa Zahoor
Co FounderHuzaifa Zahoor is the engineer who built Meyka. He has spent years writing Python, training AI models, and building data pipelines specifically for financial markets. His technical articles have reached over 30,000 readers on Medium, so he knows how to make complex things easy to follow. If this article touches on how the tools work, he is the person who actually built them.
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