UK strengthens measures to combat illicit trade
June 23, 2023
Par: National Committee Against Smoking
Dernière mise à jour: June 23, 2023
Temps de lecture: 4 minutes
The United Kingdom is strengthening its provisions to combat illicit trade, including by increasing penalties for individuals and businesses found guilty of illegally selling tobacco products. The system, which will be implemented from July 2023, also aims to combat tax losses generated by illegal sales.
During the 2020 Budget discussions, the UK government announced a package of measures to more effectively combat the illicit trade in tobacco products. As the government highlighted, illegal sales pose a major public health risk, as they increase the accessibility of tobacco, particularly to young people. Although the supply and coordination of the illicit market is partly carried out by large-scale criminal networks, the majority of illegal tobacco sales are carried out through small operators, whether they are street dealers or retail outlets.[1].
The tracking and tracing system implemented since 2019
In 2019, the Tobacco Tracking and Trace System was introduced in the UK, following the transposition of the 2014 European Directive. The purpose of this system, which allows any tobacco product to be tracked from legal manufacturing plants to the point of sale, is to help determine precisely at what stage the product left the legal supply chain. In addition, the tracking and trace system should prevent illicit products from infiltrating the supply chain.
Fines of up to £10,000 for selling illicit tobacco products
The new provisions to combat illicit trade thus provide for the Trading Standards (local consumer protection authority) to investigate the proper compliance of tobacco products with the standards relating to the tracking and tracing system. In the event of an infringement being found, the Trading Standards will now be able to refer the matter to the HRMC (the department responsible for collecting taxes in the United Kingdom). At the same time, the government has strengthened the applicable penalties, including a fine of up to 10,000 pounds (11,600 euros) for individuals and businesses found guilty of illegally selling tobacco products, the additional confiscation of stocks of legal tobacco when it is found next to illegal tobacco, as well as the temporary or permanent removal of the tobacco tracking and tracing identifier, preventing them from continuing their activities.
A tracking and tracing system that does not comply with regulations
While the establishment of dissuasive sanctions is part of the arsenal of measures provided for by the Protocol to eliminate illicit trade in tobacco products, these provisions remain insufficient to stem such a phenomenon. Noting the involvement of the tobacco industry in the illicit trade of its own products, the Protocol also recommends the establishment of a monitoring and tracing system strictly independent of manufacturers.[2]. However, to date, this independence is not guaranteed for the system in force in the European Union and the United Kingdom.
Keywords: traceability, UK, illicit trade, tobacco products ©Tobacco Free GenerationFT
[1] GOV.UK, Policy paper, New sanctions to tackle illicit tobacco duty evasion,12/06/2023, (accessed 14/06/2023)
[2] WHO Framework Convention on Tobacco Control, Protocol to eliminate illicit trade in tobacco products, (accessed 06/14/2023)
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