GREECE: Smuggling of Illegal Goods
Introduction
The data on smuggling of illegal goods cover the undeclared imports of the economy. Undeclared imports are split and treated into two different sub-categories: (a) The smuggling of cigarettes, alcohol beverages, hemp and other synthetic drugs (such as cocaine, LSD, amphetamines, ecstasy etc.); and. (b) The smuggling of the other products not included in category (a). Tobacco, clothes and wearing apparel and other low-value manufactured products are part of this category.
Sources
(a) The data on smuggling of cigarettes, alcohol beverages, hemp and other synthetic drugs are derived directly from the Illegal Activities part of the Gross Domestic Product (GDP), as calculated in Annual National Accounts.
(b) For smuggling of other products not included in category (a), there are not available sources and therefore, an estimation method is applied.
Compilation Method
As referred previously, the data on smuggling of cigarettes, alcohol beverages, hemp and other synthetic drugs are derived directly from the relevant calculations of GDP. For GDP purposes, analytical calculation has been made for the base year 2000. For the rest of the years of the time-series, extrapolation techniques are applied. A brief summary of the compilation method used in GDP for these data, for the base year, is presented below:
Smuggling of Cigarettes
The basic input for the calculations is the seized quantities in packets of smuggled cigarettes, per label of cigarettes, as provided by the Custom Services of the Ministry of Finance. The imports value of the smuggled cigarettes is calculated as the product of these quantities by the wholesale price per label of cigarettes. The wholesale price is the retail price minus the share of the special consumption tax. Data on the retail price per label are available by the Union of Tobacco Industries, as well as by several private firms.
Smuggling of Alcohol Beverages
The imports value for smuggled alcohol beverages is calculated by multiplying the adjusted seized quantities per alcohol category (ethyl alcohol and bottles of beverages) by the respective wholesale prices. Information on the seized quantities is provided by the Custom Services of the Ministry of Finance and the adjustment performed is based on the estimation of the Custom Services that the actual smuggled imported quantities are 3,5 times more than the seized ones. Information on the wholesale prices is provided by the Union of Alcohol Beverages Enterprises.
Smuggling of Drugs
According to information provided by the Coordinating Body of Drugs Prosecution in Greece, all drugs, except of hemp, are imported. Especially for hemp, the Body estimates that the 30% of the total quantity consumed in Greece is produced domestically, while the rest 70% is imported. ELSTAT applies the demand side approach, according to which, the total domestic consumption of each drug type is calculated as the product of the number of drug users by the daily-consumed quantity by the price of the drug. The sources for the number of users, the daily-consumed quantities and the prices are the Coordinating Body of Drugs Prosecution in Greece, the Research University Institute for Mental Health and the Drugs Section of the General Chemical State Laboratory. The imports value for drugs is the total domestic consumption of all drugs types, except of hemp, as described previously, and for the hemp the domestic consumption that corresponds to the 70% of the total quantity consumed in Greece.
Smuggling of Other Products
The smuggling of the other products was initially incorporated in GDP figures in 2000, following Eurostat’s recommendations, as a stable percentage over GDP. This figure is since then extrapolated following the % yoy changes of Extra EU Imports excluding oil petroleum products and ships.
