The black market for cigarettes fell 2% in January compared to November last year, from 15% to 13%, according to the latest data provided by "Novel Research".

Two years ago, in January 2010, contraband reached an all time high of 36.2%, as a result of the massive hike of cigarette excises. Illegal cigarette trade later entered a downward trend, with the exception of the months of July and November of 2011.

The areas in the Eastern region are seeing a contraction in the illicit cigarette trade (significantly more so in the South East), amid the decrease in the traffic of cigarettes with Moldavian stamps.

The West is the only region which is seeing a significant growth of the illicit trade, amid the increase in the traffic of products with Serbian stamps.

The volume of tobacco smuggling on the Serbian border has almost doubled, according to data published by "Novel" in January, rising from 12.9%, in November, to 24.1% - in the first month of 2012. Illicit trade on the Ukrainian border has also increased to 29.1% of the total black market, from 27.1% - in November 2011.

Romanian cigarette makers consider that a good measure needed to improve the legislative framework concerning contraband/evasion would be to grant clear competences to the local police and to the gendarmerie, allowing them to punish the illegal sale of cigarettes in markets, fairs or in the street.

Another situation which needs to be clarified is the one tied to acknowledged and intention, market players say. At the moment, if the person illegally transporting the cigarettes says it is not aware of the origin of the merchandise, they are not prosecuted and the vehicle is not impounded, because it is considered that there was no intent to commit contraband.

In 2011, the three largest companies in the industry paid 2.75 billion Euros to the state budget, repre