DPM Koprivica: Ban on tobacco storage to be incorporated into the new Law

Emphasizing the strong reform commitment of the 44th Government to systematically eliminate smuggling, illicit trade, and associated corruption, the ban on tobacco storage in free zones will be integrated into the new Law on Free Zones. This decision reflects the stance of both the Government and the Ministry of Economic Development, which has established a highly competent and inclusive working group to implement this reform as part of the Anti-Corruption Strategy, stated Deputy Prime Minister for Political System, Justice, and Anti-Corruption Momo Koprivica.

For decades, the Free Zone of the Port of Bar was exploited for cigarette smuggling rather than serving economic development. The misuse of the Free Zone was the most common method of carrying out cigarette smuggling, causing immeasurable damage to Montenegro’s reputation and budget, as well as to the budgets of Western European countries. This abuse was enabled by systemic corruption, said Koprivica.

He recalled that the Government’s decision to ban tobacco storage in the Free Zone was first enacted in 2021, following a proposal from the Ministry of Finance under the 42nd Government.

This decision remains in effect, continues to produce legal consequences, and is strictly adhered to in practice—there is no tobacco storage in the Free Zone, Koprivica emphasized.

He further highlighted that by enshrining this prohibition in law, it gains stronger legal authority and, most importantly, allows for the establishment of penalties and enforcement mechanisms for any violations.

A law is necessary to impose penalties. Believing that the ban on tobacco storage must be protected by legal sanctions, we have decided to embed it in the law, accompanied by explicit penal provisions and additional measures such as product confiscation, seizure of illicit profits, mandatory disclosure of documents and data, issuance of official orders, and more. This will ensure that no one considers exploiting the Free Zone again, allowing it to serve its intended economic purposes exclusively, stated Deputy Prime Minister Koprivica.

From a state-policy perspective, he noted that by codifying the tobacco storage ban in free zones, Montenegro is sending a clear message—both domestically and internationally—that its determination to eradicate smuggling and illicit tobacco trade is unwavering. This strengthens the country’s reputation and accelerates efforts to combat smuggling, corruption, and organized crime.

The new law will be based on the implementation of OECD recommendations on combating illicit trade, the Code of Conduct for Clean Free Trade Zones, and the World Customs Organization’s Practical Guide on Free Zones. It will also introduce the use of advanced technologies in control procedures, Koprivica explained.

He acknowledged that the Ministry of Finance, led by Minister Vuković, has taken extensive reform measures that have significantly reduced the grey market and boosted budget revenues. Additionally, customs and police officials have effectively prevented and prosecuted smuggling cases, while the Special State Prosecutor’s Office has delivered remarkable results in dismantling organized criminal groups involved in cigarette smuggling—efforts that deserve full recognition and support.

Koprivica also highlighted that the Government’s Coordinating Body for the inventory of seized tobacco has conducted a credible process, with participation from international partners. The final steps are underway to ensure that all confiscated tobacco is destroyed in a fully transparent manner, with every stage recorded and verified, ensuring accountability down to the last cigarette pack.

This approach not only demonstrates the reform-oriented will and determination of the 44th Government but also strengthens Montenegro’s system and international reputation. It will position our country as an attractive destination for legitimate investors—never again for illicit traders and smugglers, concluded Koprivica.