Tobacco Track and Trace
Prevent tax evasion, safeguard citizens' health, and protect brands from trademark infringement by combatting illicit tobacco trade.
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If the illicit cigarette trade were eliminated, governments would instantly gain at least $31 billion
According to World Bank, illicit tobacco generally sells for considerably less than their tax-paid equivalents and causes the most harm to price-sensitive populations, particularly young people and those with low incomes.
The International Union Against Tuberculosis and Lung Disease (The Union) reported that the illicit tobacco trade predominantly impacts lower-income countries, where it constitutes an average of 16.8% of the cigarette market. In contrast, high-income countries have an average of 9.8%. By tackling illicit tobacco trade, it's possible to prevent over 160,000 tobacco-related deaths per year.
183 countries covering more than 90% of the world population have joined the FCTC protocol. One of the obligations under FCTC is to implement track and trace.
How does it work?
- By providing transparency and traceability throughout the supply chain, it discourages illegal activity and protects legitimate businesses, governments, and consumers.
- Traceability assigns unique identifiers to tobacco products, allowing authorities to track their movement from production to sale. This disrupts the ability of smugglers to move illicit tobacco through the supply chain undetected.
- Track and trace systems can flag products with missing or invalid identifiers, potentially leading to the seizure of counterfeit tobacco before it reaches consumers.
- Traceability data can be used to verify the legitimacy of tobacco imports and exports, helping customs officials identify and seize illicit tobacco shipments entering a country.
- By ensuring genuine products are taxed appropriately, track and trace reduces lost tax revenue due to illicit trade.
Key features
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Unique identification
Each tobacco product receives a tamper-proof identifier, traceable throughout the supply chain.
Anti-counterfeiting measures
Validate product authenticity and identify fake or smuggled tobacco using secure identifiers.
Real-time tracking
Monitor movement of tobacco products from production to sale, pinpointing potential diversions.
Data sharing & analysis
Share tracking data with authorities for coordinated enforcement efforts against illicit trade.
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Consumer protection
Protect consumers by empowering them with information about product origin and authenticity.
Tax revenue protection
Ensure proper taxation of genuine tobacco products, safeguarding government revenue.
A win-win solution for all stakeholders
traceCORE Tobacco Track and Trace discourages the production and distribution of fake tobacco products, which benefits governments, manufacturers, and consumers.
- Reduced illicit trade. Disrupts smuggling operations by tracking and identifying illegal products.
- Increased tax revenue. Ensures proper taxation of genuine tobacco products, leading to higher government revenue.
- Improved public health. Reduces availability of potentially harmful counterfeit products that may contain unknown substances.
- Enhanced border control. Helps identify and seize illegal tobacco shipments entering the country.
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- Brand protection. Makes it harder to counterfeit their products, protecting brand reputation and market share.
- Reduced diversion. Helps track where their products go, minimizing losses due to theft or diversion to illicit markets.
- Improved efficiency. Streamlines supply chain management by providing real-time data on product movement.
- Regulation compliance. Provides a solution for tobacco control regulations in different markets.
- Peace of mind. Provides assurance that they are purchasing genuine tobacco products.
- Enhanced product information. Allows access to data about the origin and journey of the tobacco products they consume.
- Reduced risk of counterfeits. Minimizes the risk of purchasing fake or potentially harmful tobacco products.
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