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Black market tobacco is sidestepping $287 million in excise taxes - with the illegal trade making up 11.5 percent of the market.
New Zealand has strict laws on the sale and supply of tobacco, but it's estimated 230 tonnes are being marketed completely off the books.
The new law states you now can't import cigarettes and loose leaf tobacco to manufactures and roll your own cigarettes without getting hit with an excise tax.
NZ customs investigation manager Bruce Berry joined Mike Hosking to give us an insight into how the black market tobacco industry is operating.
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