A serious problem for the Hungary authorities is illegal trade of the tobacco products. The financial damages that experience the economy of this country are equivalent to million dollars. It was estimated that during the 2004-2005, as result of tobacco smuggling, state lost approximately 808.4 million dollars. This sum was enough for repairing 130km of motorway, or around 1 million square meters of apartment floorspace. It is immense amount.

Illegal tobacco trade made a strong blow not only the Hungarian economy but also tobacco companies, as is American tobacco Hungary (BAT). In 2005, the unlawful sale of cigarettes comprises 22% from home tobacco market. It represents nearly ј of the entire market. It can be understood why cigarette producers are so revolted.

Due to the coordinated work of the Hungarian Custom and Finance Guard (VPOP) and other state forces the rate of the illegitimate cigarette purchase become lower. It comes down with 50% in comparison with the first part of the 2006 year. It is great work.

This result was partly realized through introducing special high taxes on smoking cigarettes and on more serious control on the imported products. This process takes some time, but the results are positive. This increases the budget of the Hungary industry and that of the tobacco producers because legal selling of cigarettes goes to financial stabilization.

This cannot be said about the sellers of the prohibited smoking cigarettes. It can with certainty affirmed that they felt “big slimmest” in their pockets.

But this result was touched through vast internal control and near its boundaries. Hungary was prevented by the Ukrainian neighbors about an illegal attempt of bringing around 40.000 packs of smoking cigarettes in boats on the Tisza River. The smugglers tried to enter in Hungary from the North part. Thanks to Ukraine it was obviated.

The fact that the amount of the prohibited cigarettes diminishes is the result of the home and boundary checking.