What’s Being Done

What are the authorities doing to stop illicit trade?

In 2025, 2025 Ministerial Advisory Group on Transnational and Serious Organised Crime found “[h]igh duties on cigarettes has made the importation of black market tobacco (undeclared and uncustomed tobacco) a massive growth industry. Organised criminal groups are exploiting the lower risks involved with importing tobacco, compared to drugs, to profit off the New Zealand public and to take those profits offshore.

The Australian experience is that violence and other crime normally associated with control of the illicit drug market will soon emerge in New Zealand in relation to black market tobacco, as this lucrative industry becomes more competitive, placing additional demands on the New Zealand justice system.”

Since 2022, a dedicated tobacco team has proven successful by investigating and prosecuting the illicit import or distribution of tobacco products and to counter tax evasion from tobacco smuggling. During 2024/25, Customs Officers arrested 10 people on 66 charges related to the manufacture, possession, and distribution of illicit tobacco, including revenue evasion and other criminal acts

In 2025, Customs confirmed a new Border Security Bill is being drafted to strengthen its ability to counter transnational and serious organised crime.  The legislation is being shaped by insights from the independent Ministerial Advisory Group on Transnational, Serious and Organised Crime, and updates to the multi-agency transnational and organised crime strategy.

You can continue to follow these important announcements in relation to the fight against illicit tobacco being introduced via the Stop Illicit website at: www.stopillicit.co.nz.

Know the threat

What is
illicit tobacco?

Illicit tobacco is tobacco that is grown, manufactured and/or produced in New Zealand without an appropriate excise licence, or imported into the domestic market without customs duty being paid.

Loose tobacco
Known as “Chop-Chop”
Unprocessed or roughly cut leaf tobacco grown or imported illegally — sold loose, unbranded and untaxed.
Cigarettes
Known as Contraband or Counterfeit
Factory-made cigarettes smuggled across the border or fake branded packs — no excise paid, no quality control.
Know the threat

Types of illicit tobacco

The illegal tobacco trade falls broadly into four categories.

Contraband
Genuine tobacco products produced for lawful distribution in their intended market, but illegally diverted and smuggled into a different market.
Illicit Whites
Tobacco products generally legally produced in one market, then smuggled into another where they have limited or no legal distribution.
Counterfeit
Tobacco products manufactured without the permission of the trademark rights holder — fake branded packaging with no quality control.
Unbranded Tobacco
Finely cut loose-leaf tobacco sold in a range of pack sizes in roll-your-own form. Also known as ‘chop chop’.