Luxury Goods Overtake Tobacco in Andorra-Spain Smuggling Value at Farga de Moles

Smuggling patterns at the Farga de Moles border crossing between Andorra and Spain have shifted markedly, with high-end watches, perfumes, alcohol, and other luxury goods now outpacing tobacco in seizure value.

Data from Spain's Tax Agency show that the value of seized luxury items—categorised as "other" goods including cameras, lenses, mobiles, medicines, and perfumes—rose from €85,939 in 2021 to €416,192 in 2024. It remained above €370,000 in 2025, a fivefold increase over four years. The number of related cases jumped from 49 to 114 in the same period, surpassing tobacco seizures consistently since 2022.

Tobacco smuggling, long dominant due to tax disparities on VAT and excise duties between Andorra and the EU, has held steady. Annual cases ranged from 73 to 117 between 2021 and 2025, with values fluctuating between €46,900 in the first half of 2026 and €184,500 in 2023, showing no clear upward or downward trend.

Daniel Alaya, acting head of the Guardia Civil company in La Seu d'Urgell, pointed to growing interest in luxury watches as a key driver. Their compact size relative to high value makes them easy to conceal, he said, with potential profits exceeding 20% if undeclared. Officers have intercepted timepieces worth €50,000 to €100,000, yielding significant gains for smugglers willing to take the risk.

A recent ruling by the Superior Court of Justice of Catalonia (TSJC) has clarified penalties for such cases. It determined that individuals sanctioned in 2021 for attempting to bring undeclared luxury watches across the Spanish-Andorran border must pay a fine equivalent to 80% of the item's value to recover it. This reduces the stance previously defended by Spain's Tax Agency, which sought 100% sanctions, though the doctrine could still face review by the Supreme Court this September.

In contrast, undeclared cash seizures have plummeted. After peaking at 72 cases and €1.3 million in 2022, figures fell to 38 cases in 2023, 28 in 2024, and 22 in 2025, with €289,468 seized—a fifth of the peak. Emilio Bayano, head of the customs passenger service, attributed this to improved intelligence reducing administrative currency violations. Spain limits cash entry to €10,000; excesses trigger fines up to 200% of the amount, with funds confiscated but travellers allowed to proceed. Authorities recently added a dog named Amy trained to detect banknotes. Alaya stressed pursuing such infractions to ensure fair competition and prevent clandestine cross-border money flows, noting most cases involve entry into Spain.

Perfumes have also drawn attention beyond smuggling, as theft targets. Last Saturday, police at the Franco-Andorran border detained three non-resident men aged 38, 49, and 52 as suspected thieves. French customs stopped their French-plated vehicle, alerting Andorran police after finding numerous perfumes and cosmetics without purchase receipts. The men were arrested on suspicion of stealing the goods.

Farga de Moles, the Iberian peninsula's sole land customs post with a non-EU country, handles seven million passengers yearly—around 12,000 light vehicles and 350 heavy ones daily. It runs parallel controls: National Police for people under Schengen rules, and Guardia Civil fiscal guards with the Tax Agency for goods, aiming to protect legitimate trade in an EU customs union.