Belgian customs officers expected a routine inspection when they approached an anonymous warehouse last September in Ledegem. Instead, they uncovered a fully operational illegal cigarette factory running day and night behind insulated concrete walls.
Inside, production lines hummed beside drying racks and packaging machines. Two oil-fired generators powered the site, while makeshift sleeping quarters, a shower, kitchen and even a ping-pong table revealed workers were living on-site to avoid detection.
“When we raided the premises, 29 people were arrested, most of them Ukrainians,” said Florence Angelici, spokesperson for Belgium’s Finance Ministry, in comments to The Brussels Times.
According to Angelici, the factory produced roughly six million counterfeit cigarettes every day. Within weeks, the criminals had already recovered their investment, illustrating the scale and profitability of the trade.
Workers rarely stepped outside. Surveillance cameras monitored the surroundings constantly, while heavy insulation masked the roar of generators. Neighbours reported nothing unusual, allowing the operation to function undisturbed for months.
Authorities say such discoveries are becoming alarmingly common. In 2024, customs dismantled 12 illegal cigarette factories across Belgium, a record number, compared with 10 the year before.
Belgium’s location makes it attractive to smugglers. Its dense road network and easy access to neighbouring markets enable counterfeit products to move swiftly into Britain and France, where high excise duties create strong demand for cheaper alternatives.
The problem extends beyond Belgium. Angelici notes that Poland remains Europe’s largest producer of illicit cigarettes, often serving as a recruitment ground for labourers promised steady wages.
During a parliamentary exchange, Interior Minister Bernard Quintin said workers are sometimes lured by online advertisements offering €2,000 a month. Once abroad, many find themselves trapped in illegal factories with limited freedom.
“This criminal activity generates hundreds of millions of euros for organised networks,” Quintin warned, describing cigarette fraud as a gateway to broader illicit operations including drug trafficking.
While most counterfeit cigarettes are exported, illegal consumption within Belgium is rising. Smokers now pay around £12 for a pack of Marlboro, the country’s most counterfeited brand owned by Philip Morris International. Prices have doubled over the past decade.
Excise duties have climbed sharply — 85% on cigarettes and 142% on rolling tobacco over five years — widening the price gap between legal products and black-market alternatives that can cost half as much or less.
Health officials warn these cheap cigarettes carry hidden dangers. Tests often reveal heavy metals or other toxic contaminants. “The factories we shut down do not comply with hygiene rules in any way,” Angelici said. “It’s always very dirty there.”
The impact is especially visible in Brussels, where illegal vendors openly sell cigarettes at the Abattoir Market in Anderlecht. Traders frequently approach shoppers, sometimes aggressively.
“They impose themselves on visitors,” said market representative Paul Thielemans, adding that police patrols have struggled to keep pace. Fights between rival sellers and links to drug dealing have heightened tensions.
Anderlecht Mayor Fabrice Cumps said thousands of cartons are seized annually, yet enforcement remains a challenge. “The dealers are becoming more aggressive. We are using all the resources we can,” he said.
The tobacco industry argues that rising taxes fuel the underground trade. But public health experts at Sciensano dispute that narrative, noting smoking rates have dropped from 28.5% in 2001 to 17.6% in 2024.
Instead, officials point to “tobacco tourism” to Luxembourg, where lower taxes attract cross-border shoppers. The European Commission is exploring price harmonisation measures to reduce such loopholes.
On the criminal side, the threat remains transnational. Europol estimates at least 34 gangs across Europe specialise in excise fraud, some controlling entire production chains from manufacturing to street sales.
Belgium is responding with tighter cooperation and specialised customs units. Finance Minister Jan Jambon recently pledged to intensify the fight, promising stronger intelligence sharing and more targeted raids.
For authorities, the warehouse in Ledegem serves as a stark reminder that behind cheap packs lies a sophisticated network of exploitation, tax evasion and organised crime — one that Belgium is now racing to dismantle.
