AManda persico

As part of the Stop Contraband Tobacco campaign, law enforcement agencies and retail groups put together an education campaign for convenience store owners and school boards on the negative effects of contraband and counterfeit cigarettes. It was presented at a meeting hosted by the Canadian Convenience Stores Association (CCSA), the RCMP and Crime Stoppers Thursday evening in Newmarket.

Contraband cigarettes are legitimately produced and sold on First Nations reserves, said Cpl. Kelly Helowka of the RCMP customs and excise section in the Newmarket detachment. Usually marked with a peach-coloured band, they become illegal when they are diverted off reserves and the tax-exempt smokes are sold in local stores or bought by non-natives.

In September, the CCSA conducted the annual Butt Study, where cigarette butts were collected from 155 high schools in Ontario and Quebec. The study found more than 35 per cent of student smokers smoked contraband cigarettes. Locally, 50 per cent of discarded cigarettes near school properties in Newmarket were contraband, followed by 47 per cent in Aurora, 27 per cent in Markham and 15 per cent in Richmond Hill.

Many students are getting those cigarettes cheap, Mac's convenience stores director of customer relations Bruce Watson said.

"No one wants to see a 14-year-old kid with a bag of cigarettes who only paid a quarter of their allowance to get it," he said.

"They can get these illegal cigarettes for the same price as a stick of gum."

There is also a growing number of dealers going directly to students, who don't have to show ID, he added.

"Think Al Capone, that's who we're creating," Mr. Watson said. "Criminals sell illegal cigarettes to students. The evidence is all over the school yard."

Another growing concern is counterfeit cigarettes smuggled into Canada from China or India, Cpl. Helowka said. Counterfeit cigarettes, usually sold in look-a-like packs or plastic baggies, are not tested under any health controls in Canada.

"Cigarettes are smuggled into the country the same way cocaine is smuggled in," he said. "Why risk the dangers of smuggling cocaine when there is more money and less risk with cigarettes."

There is also growing concern about the connection to organized crime groups that sell illegal cigarettes in addition to selling drugs and weapons.

To make, ship and sell counterfeit cigarettes costs the dealer about $3 a carton, Cpl. Helowka said. Dealers sell the cartons to retailers for about $60 a carton and the retailer sells them for about $80 a carton. That's more than a $50 profit for each carton of cigarettes for organized crime dealers.

Evidence suggests a portion of profit from counterfeit cigarettes is funding terrorist activities, Cpl. Helowka said.

According to the CCSA, about $100 million is lost in provincial sales taxes each year as a result of contraband and counterfeit cigarettes.

Taxes make up about 75 per cent of the retail cost on a carton of cigarettes and those taxes go toward community health education programs.

Most contraband cigarettes are sold to unknowing retailers, so the RCMP and York Regional Police are warning retailers to look out for dealers trying to sell big brand look-a-likes at cheap prices.â?¨

For more information on contraband cigarettes, visit www.stopcontrabandtobacco.ca or the RCMP Contraband Tobacco Enforcement Strategy at www.rcmp-grc.gc.ca