HM TREASURY News
Release (PN 38/09) issued by COI News Distribution Service on 20
April 2009
The Government has
today taken another significant step in the fight against tobacco
smuggling as Exchequer Secretary to the Treasury, Angela Eagle
today signed anti-smuggling agreements with two international
tobacco manufacturers.
The agreements - with Philip Morris International (PMI) and Japan
Tobacco International (JTI) - complement the legislation that the
Government introduced in 2006, requiring all tobacco manufacturers
to help prevent smuggling through careful control of their supply chains.
The Exchequer Secretary Angela Eagle, said:
"These
agreements are an important new element in the fight against
tobacco smuggling. In the last decade we have halved the size of
the illicit cigarette market in the UK and by signing these
agreements, we are demonstrating that we are determined to
continue working with tobacco manufacturers to tackle smuggling."
Since the UK's first Tackling Tobacco Smuggling strategy was
published in 2000, HM Revenue & Customs and the UK Border
Agency have:
* reduced the proportion of illicit cigarettes
from 21% in 2000 to 13%;
* seized more than 14 billion
cigarettes and more than 1000 tonnes of hand rolling tobacco in
the UK and abroad;
* broken up 370 criminal gangs involved in
large-scale smuggling;
* prosecuted more than 2,000 people and
issued more than £35m worth of confiscation orders.
Notes for Editors
1. Under the new agreements, PMI and JTI
are committed to working with the European Commission, the UK
Government and customs authorities across the EU to tackle the
smuggling and counterfeiting of their products. They will do this
through measures which include Know Your Customer rules and
track-and-trace technology.
The agreements also require PMI
and JTI to make payments to the UK authorities if their genuine
products are seized by HMRC.
2. Further details of the two agreements can be found in the
following European Commission press releases:
http://europa.eu/rapid/pressReleasesAction.do?reference=IP/07/1927&format=HTML&aged=1&language=EN&guiLanguage=en
http://europa.eu/rapid/pressReleasesAction.do?reference=IP/04/882&format=HTML&aged=1&language=EN&guiLanguage=fr
3. The Government announced its intention to conclude
negotiations on signing these agreements at the time of the 2008
Pre-Budget Report, when it published Tackling Tobacco Smuggling
Together: An Integrated Strategy for HM Revenue and Customs and
the UK Border Agency. This document, which sets out the
Government's record on and future plans for tackling tobacco
smuggling can be found at:
http://www.hmrc.gov.uk/pbr2008/tobacco-2800.pdf
4. In April 2009 HM Revenue & Customs established inland
detection teams to target the illegal trade in tobacco, alcohol,
and oils. (HMRC Press Notice no. NAT 29/09) The UK Border Agency
operates detection functions at UK borders having brought together
officers staff from HM Revenue & Customs, the Border and
Immigration Agency and Foreign and Commonwealth Office visas. UKBA
began operation on 3 April 2008 and was officially launched by the
Home Secretary at Gatwick Airport. Its formation was announced in
November 2007 (Home Office Press Notice no. 178/2007).
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Correspondence and Enquiry Unit on 020 7270 4558 or by e-mail to public.enquiries@hm-treasury.gov.uk
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