CARRERAS, the island’s largest cigarette distributor, says it stands to lose about $300 million in revenue following the recent recovery of counterfeit Craven A cigarettes on the local market.

“Our information suggests that at least one container which holds about 1,000 cases of cigarettes, valued at approximately $300 million, was detected,” said Christopher Brown, head of corporate and regulatory affairs at Carreras.

Craven A, Brown told the Observer, is the company’s most popular brand which accounts for approximately 65 per cent of its revenue.

In addition, Brown estimated that Government could lose as much as $175 million from duties and taxes from the illegal cigarette imports.

“We recognise that we have to take all the required actions to protect not only the revenue of the company and the returns of our shareholders who have invested in the company, but also that of the Government,” said the Carreras official.

Taxes on cigarettes distributed by Carreras is expected to contribute approximately $11 billion to the Government’s coffers in 2010/11.

Carreras said yesterday that it was made aware of the counterfeit Craven A on the local market after persons involved in the illegal trade offloaded some of the products to its legitimate dealers.

Test of the products subsequently revealed that they were counterfeit, and Brown said the samples were found to be deficient in the smoke, taste and quality.

Carreras, in the meantime, has advised consumers that the safety and quality of the products were likely to be compromised.

Independent tests have found that counterfeit cigarettes can contain ingredients that are more harmful than those in legal cigarettes. According to the International Chamber of Commerce’s Counterfeit Intelligence Bureau (CIB) of Singapore, “fake smokes can contain five times the level of cadmium, six times as much lead, 160 per cent more tar and 133 per cent more carbon monoxide”. Fake cigarettes can also contain dead flies, grass, wood, insect eggs and human faeces.

“Of utmost importance to both smoking and non-smoking public is that Carreras cannot guarantee that the quality is at an acceptable level that ensures required safety levels,” Carreras said in a press release yesterday.

In addition to health and safety concerns, Carreras warned persons involved in the distribution of counterfeit Craven A that they could face prosecution.

“We are working closely with both Jamaica Customs as well as the Constabulary Force to identify, apprehend and prosecute the individuals who are participating in the trade,” Brown said.

Carreras warned, too, that “persons who choose to purchase or are in possession of the counterfeit product are liable for prosecution as this is a criminal offence which contravenes the provisions of the Trade Marks Act and Copyright Act of Jamaica”.

The counterfeit brands can be identified by an expiration date of ’11 June 2010′ and a 12-digit product code: 870-294-051-227 on the bottom panel in gold on each cigarette pack.

Legitimate Craven A cigarettes, Brown said, have ‘best before’ date or product code.