Contraband tobacco products found in a southeast Calgary storage facility. (Supplied/AGLC)

By Josh Hall (Twitter: @Vancan19)

$4.5 million worth

Red Deer man charged in one of province’s largest ever tobacco busts

Jul 29, 2021 | 11:43 AM

An investigation by Alberta Gaming, Liquor and Cannabis has led to the seizure of an estimated $4.5 million of contraband tobacco.

The agency says the seizure represents one of the largest in Alberta history and represents more than $2.5 million in lost tax revenue.

Calgary police and the RCMP discovered the contraband during a search of a storage facility in southeast Calgary.

Ali Al-Hameedawi from Red Deer and Husham Hakeem from Calgary have been charged with trafficking in contraband tobacco and are to appear in provincial court on Aug. 26.

AGLC advises that contraband tobacco:

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• is any tobacco product that does not comply with federal and provincial laws related to importation, marking, manufacturing, stamping and payment of duties and taxes;
• comes from four main sources: illegal manufacturers, counterfeits, tax-exempt diversions and resale of stolen legal tobacco; and
• can be recognized by the absence of a red (Alberta) or peach/light tan (Canada) stamp bearing the “DUTY PAID CANADA DROIT ACQUITTÉ” on packages of cigarettes and cigars or pouches of tobacco.
  Contraband tobacco products found in a southeast Calgary storage facility. (Supplied/AGLC)

“In addition to lost revenues that may otherwise benefit Albertans, illegally manufactured products also pose public health and safety risks as they lack regulatory controls and inspections oversight,” AGLC notes in a release.

“All wholesalers and importers of tobacco into Alberta must be licensed to sell or import tobacco for resale. Furthermore, all tobacco products must be labelled according to federal and provincial regulations. Albertans who suspect illegal tobacco production, packaging and/or trafficking are encouraged to contact AGLC’s Tobacco Enforcement Unit at 1-800-577-2522.”

In 2020-21, provincial revenue from tobacco taxes was approximately $755 million.