Illicit Whites in Latin America

Illicit whites are cigarettes that are legally produced in one country, often under their own unique brand name, for the sole purpose of being smuggled into other countries for illicit sale. Criminals typically take advantage of vulnerabilities in free-trade zones (FTZs) to traffic these products.

“Cheap whites” not only cause massive tax revenue losses for governments, but they also pose a security risk, and usually infringe the local regulations of destination countries.

The global flow of illicit whites has become an increasingly pressing issue in the fight against illicit trade. This is because they are highly attractive for smugglers, who can generally avoid the risks of prosecution for intellectual property rights infringements that counterfeiters have to contend with.

ApiraSol regularly maps the international illicit trade of cheap whites. We pay special attention to Central America and how tobacco trade is connected to other continents, suppliers and importers.

Recent studies have demonstrated the international nature of the illicit whites trade, monitoring the role of producers in India, China and Vietnam, as well as traders in the Middle East and Paraguay.