OLAF helps Lithuania to close an illegal factory of counterfeit nicotine pouches.

The Lithuanian authorities discovered in Kaunas a fully operational line that produced, packaged, and labeled nicotine pouches with the brands of some well-known manufacturers. The investigation started from information provided by OLAF, and the factory is suspected of supplying markets in Scandinavian and Baltic states, as well as the United Arab Emirates.

The Lithuanian authorities also discovered and closed in Kaunas a completely operational illegal factory that produced counterfeit nicotine pouches, after the European Anti-Fraud Office, OLAF, identified signs of production activity and forwarded the information to the Lithuanian customs service. Following the raid, over 330,000 boxes, unmarked finished products, and significant quantities of raw materials were confiscated.

In short OLAF identified signs of an illegal production operation and forwarded the information to the Lithuanian Customs Criminal Investigation Service. The investigation by the Lithuanian authorities led to the discovery of a sophisticated factory that produced, packaged, and labeled nicotine pouches using the brands of some well-known manufacturers. Over 330,000 boxes containing approximately 30 types of products, with different flavors and nicotine concentrations, were confiscated.

The authorities also found unmarked finished products, liquids, and other bulk substances intended for continued production, including nicotine classified as a substance with acute toxicity.

The factory is suspected of supplying products to markets in Scandinavian and Baltic states and to the United Arab Emirates.

The operation began after OLAF identified elements indicating the existence of illegal production activity in Lithuania. The information was forwarded to the Lithuanian Customs Criminal Investigation Service, which opened an investigation.

The investigation led the authorities to a production unit in Kaunas. The factory was operational and had equipment for manufacturing, packaging, and labeling nicotine pouches.

The products bore the brands of some well-known manufacturers, although they were produced outside the authorized production chains. OLAF does not identify the brands used.

During the raid, the authorities found approximately 30 different types of nicotine pouches. The products had different flavors and concentrations and were prepared for sale in over 330,000 boxes.

Significant quantities of already manufactured pouches were also discovered, but they had not yet been labeled. This indicates that production was ongoing at the time of the intervention.

The factory also contained raw materials intended for new batches, including liquids and substances stored in bulk.

Among the materials found was nicotine classified as a substance with acute toxicity. Handling it requires strict safety conditions, as exposure to high concentrations can pose health risks.

In the case of an illegal factory, production takes place outside the applicable control systems for authorized manufacturers. Authorities cannot assume that the raw materials, nicotine concentration, manufacturing process, and labeling have been verified through standard procedures.

The use of brands from well-known manufacturers can make illegal products appear authentic to consumers. The consumer may believe they are receiving a product made and verified by the company indicated on the packaging.

OLAF's Director General, Petr Klement, stated that such products can exploit consumer trust in the brands they imitate and can reach the market without the safety checks applicable to legitimate products.

"Illicit nicotine products can reach people without the safety controls that apply to legitimate products," Klement said.

The factory is suspected of supplying several external markets. OLAF indicates the Scandinavian and Baltic states and the United Arab Emirates as probable destinations.

This distribution shows that the activity was not limited to the Lithuanian market. The products were set to enter trade networks that crossed national borders. OLAF does not provide information on the quantity that may have already been sold before the intervention or the period during which the factory operated. The commercial value of the over 330,000 confiscated boxes or the estimated damage to the manufacturers whose brands were used is also not specified. Nicotine pouches are part of a growing European market for alternative products containing nicotine. Unlike cigarettes, these do not involve the burning of tobacco, and nicotine is absorbed after placing the pouch in the oral cavity.

The counterfeit nature of the confiscated products concerns the origin and unauthorized use of the brands, and the safety issue is related to their manufacture outside regulated circuits.

Counterfeit products also affect brand holders, as the packaging and names can be used without their consent to market products they did not manufacture and over which they have no control.

In this case, OLAF played a role in identifying the suspicious activity and forwarding the information to the competent national authority. The investigation and intervention in the factory were carried out by the Lithuanian authorities. Cooperation is relevant as OLAF can use information from multiple states and from European customs activity to identify patterns or operations that affect the revenues and financial interests of the Union. Customs play a role in such cases as the circulation of counterfeit products and raw materials can involve imports, exports, and taxes due at the border. The national investigation will establish the responsibilities of the individuals and companies involved in production and distribution.

OLAF investigates fraud, corruption, and other activities that may affect the financial interests of the Union, including certain European revenues from customs duties. When it identifies relevant elements for a national criminal or administrative investigation, the agency cooperates with the competent authorities. The operation in Kaunas started from information provided by OLAF and led to the closure of a unit capable of producing and distributing counterfeit nicotine pouches on a large scale in multiple markets.

https://2eu.brussels/en/news/olaf-helps-lithuania-close-an-illegal-factory-of-counterfeit-nicotine-pouches