Alcohol Fraud
Customs; latest estimates of the level of spirits fraud is thatin 2002/03 the illicit market accounted for around 7% of the legitimate market in the UK and cost around £250 million. This is a significant reduction from 2001/02 when the revised estimate was that 13% of the market was illicit.
In 2002/03, activity has yielded:
- Seizure of more than 900,000 litres of spirit worth around £10 million in evaded duty
- Secured convictions against 21 defendants for spirit offences.
Evidence from Customs’ intelligence and operational teams show that fraudsters continue to exploit the inherent weaknesses in the EU holding and movement system that was designed to facilitate the legitimate industry by removing varies to trade amongst member states.
