Eliminate Illicit Tobacco Trade
Protect Government Revenues
Meet the FCTC Requirements
Foster a Fair Tobacco Market
The illicit trade in tobacco represents around 12% of the global cigarette market .
Illicit tobacco trade leads to the government revenue loss of US $40.5 billion and 160,000 deaths annually.
The consequences of tobacco smoking disproportionately affect lower income population. Lower income countries lose 30% more fiscal revenue due to illicit tobacco trade compared to high income countries
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.
Track & Trace: Empowering Governments to Fight Illicit Tobacco.
- 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. This discourages the production and distribution of fake tobacco products.
- Traceability data can be used to verify the legitimacy of tobacco imports and exports. This helps 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. This incentivizes legitimate businesses and supports government budgets.
Key Features
- Unique identification. Each tobacco product receives a tamper-proof identifier, traceable throughout the supply chain.
- Real-time tracking. Monitor movement of tobacco products from production to sale, pinpointing potential diversions.
- Anti-counterfeiting measures. Validate product authenticity and identify fake or smuggled tobacco using secure identifiers.
- Data sharing & analysis. Share tracking data with authorities for coordinated enforcement efforts against illicit trade.
- Tax revenue protection. Ensure proper taxation of genuine tobacco products, safeguarding government revenue.
- Consumer protection. Empower consumers with information about product origin and authenticity.
Tax Revenue Protection
Strengthening Border Controls
Identifying and Seizing Counterfeits
Deterring Criminal Activity
Improving Consumer Protection
Disrupting Illicit Supply Chains
Benefits
Close the Loop: Traceability Secures the Tobacco Trade
- 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.
- 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.
