HAVE YOU GOT A 'UK DUTY PAID' MARK ON YOUR TOBACCO? TOUGH NEW PENALTIES FROM THIS WEEKEND

29 Jun 2001 12:00 AM

The ''UK Duty Paid'' mark becomes a legal requirement on all cigarette and hand-rolling tobacco packets bought and sold in the UK from this weekend.

New offences and penalties for trading in unmarked tobacco come in to effect from Sunday 1 July. Anyone caught trading in unmarked cigarettes will lose their tobacco, risk a criminal conviction, a fine of up to #5000 and a possible restriction on the sale of legitimate tobacco goods for up to six months.

The fiscal mark is part of a massive #209 million strategy to clamp down on tobacco smuggling. Customs and Excise Minister Paul Boateng today officially launched the pack mark at a newsagent in Finchley, North London.

Speaking at the launch, he said:

''Some of the UK''s most organised criminal gangs are behind tobacco smuggling. These same gangs traffick cocaine, heroin and people. Anyone involved in selling or buying illicit cigarettes is helping fund these serious criminals.

''The ''UK Duty Paid'' mark will not only allow Customs officers but anyone buying or selling tobacco to identify smuggled cigarettes more easily within the UK. The pack marks provide tough new sanctions for those that break the law and new offences will mean that officers can deal with criminals more quickly.

''Let''s be clear, if you are caught dealing in illicit cigarettes you could face a #5,000 fine, a criminal conviction or a restriction on your sale of tobacco - Customs officers could even seek to remove your lottery terminal or liquor licence.''

Mr Pishu Mukhy, who runs ''Mucksons'', a family newsagent in Finchley, North London hosted the pack mark launch this morning. He said:

''Our sales of cigarettes and particularly hand-rolling tobacco have dropped dramatically because of illicit tobacco selling in North London. I am pleased that the pack mark is now on the shelves. The new penalties send a strong message to all those dealing in this trade - that also goes for the owners of premises who allow sales to continue on their property.''

The Pack Mark together with the extra 1000 Customs officers and new x-ray scanners, provided as part of the Government''s anti-smuggling strategy, is aimed to put the problem of tobacco smuggling in to decline.

All establishments must make it their business to ensure that the selling of illegal tobacco does not take place on their premises. If anyone is in any doubt about this or the tobacco they are buying or selling, they should call Customs Confidential Hotline on 0800 59 5000.

Notes to Editors

1. From Sunday 1 July it will be an offence to possess, sell, deal, transport or store cigarettes or hand-rolling tobacco without the pack mark or for premises to be used for the sale of unmarked products.

2. It is not an offence to possess tobacco without the pack mark if it is bought legitimately from abroad, as Duty Paid or Duty Free.

3. Each packet of cigarettes and hand rolling tobacco for sale in the UK must carry the words ''UK DUTY PAID'' in a rectangular box printed indelibly on the packet. For an interim period to 30 September 2001, the duty-paid fiscal mark may be carried on the tear-strip of packets.

4. Wholesalers and distributors have until 31 July to return unmarked tobacco.

5. The Government announced the introduction of the fiscal mark in March 2000 along with the Government''s tobacco strategy, ''Tackling Tobacco Smuggling''.

6. The UK DUTY PAID mark does not apply to cigars, cigarillos, pipe tobacco, chewing tobacco and hand-rolling tobacco sold loose from containers that hold at least 500 grammes.

See attached tobacco smuggling fact sheet for facts and figures on tobacco smuggling and details of the strategy.

Issued by Customs and Excise Headquarters, London.

For further information, please contact: Nadine Smith 020 7865 5715 Robert Buxton 020 7865 5010 Out of Hours 020 7620 1313 FACT SHEET ON TOBACCO SMUGGLING

Tobacco strategy

In March 2000, the Government published the Tackling Tobacco Smuggling strategy document. The strategy includes additional Government investment of #209 million to fund almost 1000 new Customs officers, a national network of the latest x-ray scanners and a hard hitting publicity campaign. The strategy, which is designed to reduce tobacco smuggling within three years, also involves a range of penalties and sanctions, such as Customs tough vehicle seizure policy and the introduction of pack marks.

Since the publication of the strategy Customs have implemented the following:

- 600 new customs officers

- 6 new x-ray scanners - which have been responsible for the detection of 32 million cigarettes, 3 tonnes of hand rolling tobacco (HRT) and 11 illegal immigrants.

- Tougher vehicle seizure policies

- A ''Don''t be blind to the crime'' national advertising campaign.

- Frontier and inland national strike forces have also been implemented. Their role is to disrupt inland and frontier smuggling attempts by intensive, high profile, operational activity. This has so far resulted in the seizure of over 50 million cigarettes, 30 tonnes of hand rolling tobacco and over 5,000 inland visits.

Detections

In the first 9 months of 2000/01 Customs seized 2.1 billion cigarettes: 1.4 billion in the UK and 0.7 billion overseas in conjunction with our enforcement colleagues abroad.

Almost 7000 vehicles have been seized by Customs and Excise in the same period.

Seizures

The following have been among the big seizures at the frontier and inland over the last three weeks:

8m Regal ex China at Felixstowe 4.6m various ex Austria at Hull 4.6m ex Hungary at Dover 3.7m Regal ex Greece at Hull 3.6m Sovereign + Regal ex Portugal inland (NW) 3m Superkings ex Belarus at Harwich 3m Regal ex Greece inland (Staffs) 2.7m various ex Portugal inland (Sheffield) 2.5m B&H ex China at Isle of Grain 2m Superkings origin unknown inland (Staffs)

Revenue Loss

The total overall revenue loss associated with all forms of tobacco smuggling in 2000 is #2.9billion for cigarettes and #0.9billion for hand rolling tobacco (HRT).

A little over one in five cigarettes (22%) smoked in Britain is smuggled. Without action Customs estimate this would have risen to one in three within a few years.

Revenue loss for the calendar year 2000 from cigarettes smuggled by freight accounted for #2.3 billion.

Revenue loss for the calendar year 2000 from cross channel smuggling of cigarettes is estimated at #470 million.

The total amount of revenue lost through cross channel smuggling of tobacco in the calendar year 2000 is estimated at #1.36 billion most of which (#0.89 billion) is HRT.

Estimated revenue loss from smuggling of cigarettes by air passengers /internet/parcel in calendar year 2000 is about #120 million.

Tobacco and Health

120,000 people die each year from smoking-related illness. Smoking is the single greatest cause of premature death and preventable illness in the UK.

For every 1,000 20 year old smokers, 250 will die from smoking in middle age and another 250 will die in older age from smoking.

The UK has the worst death rate for lung cancer amongst women under 65 than any other EU country apart from Denmark.

Treating illness and disease caused by smoking costs the NHS up to #1.7billion every year in terms of GP visits, prescriptions, treatment and operations.

Facts about tobacco smuggling

Criminals

75% of all convicted tobacco smugglers have previous criminal records, these include convictions for drugs smuggling, GBH and manslaughter.

Distribution

The vast majority of illicit cigarettes are traded in pubs, clubs, on the factory floor, at car boot sales and in housing estates. Whilst a small number of retail and wholesale outlets have been detected dealing in illicit cigarettes, the vast majority are honest retailers affected by this illegal and unfair competition which threatens to put their businesses in jeopardy.

Origin of smuggled tobacco

The cigarettes, mainly well-known brands, are being routed to the UK from all over the world. The vast majority of these cigarettes come from outside the EU. 70%-80% of illicit cigarettes are smuggled in freight - up to 8 million in a container at any one time. Particularly large numbers have been smuggled from China, the Middle East, former Soviet states, the Balkans and Africa.

Concealments

Tobacco smugglers are now using sophisticated concealments akin to those used by Class A drug traffickers. Recent seizures show the lengths tobacco smugglers will now go to:

- 1 million cigarettes discovered in a floor and roof concealment of a freight vehicle carrying a consignment of fish.

- 3.6 million cigarettes in 8 crane arms carried on a 15 metre trailer. Access was gained by using an oxyacetylene torch. The cigarettes had been covered by fire blankets in order to protect them.

HM Customs & Excise www.hmce.gov.uk

FOR THE ATTENTION OF NEWS DESKS

Anyone with information about illegally imported drugs, tobacco or alcohol or about VAT fraud can speak to a Customs officer in complete confidence. Call Customs Confidential 24 hours a day on 0800 59 5000