A contraband market is one in which illegal products are bought and sold. In some instances, a contraband market consists entirely of an illicit commodity, such as cocaine or heroin. In other instances, the commodity may be itself legal and sold within a legitimate marketplace along side a parallel contraband market consisting of illegally diverted products. For the purposes of this report, CISC will concentrate within this section on two selected commodities, tobacco and firearms, that would come under this second form of a contraband market.
Contraband operations range from small-scale enterprises in scale and scope (geographic reach and profitability), to very large-scale operations and thefts that are often inter-provincial and/or international in scale and scope.This last type of operation requires a significant network of individuals working in different domains that can acquire, produce, distribute and transport the products to their destined markets.The impacts of contraband markets are manifold, including the avoidance of taxes and other government regulations that are meant to guarantee a measure of quality control and/or public safety.