Efforts to Combat Illegal Cigarettes by the Medan Customs and Excise Office

The circulation of illegal cigarettes is an excise crime that threatens state revenue and can distort competition in the tobacco industry. This study examines how the Medan Customs and Excise Supervision and Service Office of Intermediate Customs Type B (KPPBC TMP B Medan) handles the circulation of illegal cigarettes through preventive and repressive law enforcement. It also adopts a statutory approach that examines the relevant laws and regulations. The research applies an empirical-juridical approach and legal interpretation based on statutory provisions. The findings show that KPPBC TMP B Medan employs a range of strategies, including preventive measures such as outreach to traders and posters on the dangers of illegal cigarettes, the use of the Tobacco Excise Revenue Sharing Fund (DBH CHT), and repressive measures such as market operations, supervision of transport vehicles, and cyber crawling. In 2025, KPPBC TMP B Medan carried out 149 excise enforcement actions and seized 8,175,222 sticks of illegal cigarettes worth Rp60.2 billion. Under Law Number 7 of 2021 on the Harmonization of Tax Regulations (HPP Law), in conjunction with Minister of Finance Regulation Number 165/PMK.04/2023, the enforcement perspective has shifted toward a revenue recovery strategy based on the ultimum remedium principle. Through administrative fines, this policy can accelerate the recovery of state revenue. However, it must be applied cautiously so that it retains a deterrent effect on illegal cigarette producers and large distribution networks.