Tackling Tobacco Smuggling Together

1
Tackling Tobacco Smuggling Together

• Judith Kelly (HMRC Tobacco Policy Manager)
• Richard Ferry (Trading Standards N.E.)
• Tony Emmerton (Programme Manager)

2
Progress made tackling tobacco smuggling
3
Current position

• While we collect roughly 8 billion per annum in
  tobacco duty, latest estimates indicate
• 13 of cigarettes and over 50 of hand-rolling
  tobacco is illicit
• We lose around 2.5 billion in revenue per annum
• Organised crime groups regard illicit tobacco as
  a high profit/low risk activity
• The proceeds of crime are used to fund other
  crimes such as drug, weapons and alcohol
  trafficking
• Illicit tobacco undermines price (tax) other
  tobacco control measures (e.g age of sale
  restrictions)
• Illicit trade damages legitimate retailers

4
Impact on health

• Smoking is the countrys biggest killer
• Smoking causes 87,000 deaths in England per annum
• Smokers in poorer communities use illicit tobacco
  at much higher rates
• Young people are more likely to buy illicit
  tobacco
• The North of England has the highest smoking
  rates in the country
• 22 (North East) 23 (North West) and 22
  (Yorkshire Humber) compared to 21 nationally
  (GHS for 2007).
• In some deprived wards in the North more than
  half the adult population smokes.

5
Not all illicit tobacco is the same

• Composition of UK cigarette seizures 2008/09
• 1. Genuine UK brands -10
• Duty free or tax-paid in other low taxing EU
  member states e.g. Spain
• Typically best selling premium brands
• 2. Counterfeit UK brands - 45
• Fake UK duty paid with the fiscal mark
• Fake EU duty paid goods, including fake foreign
  tax stamps
• Typically best selling premium brands
• 3. Genuine non-UK brands - 45
• Cannot be legitimately bought in the UK
• Mass-produced in factories, mostly outside the EU
• Flooding onto the EU market in huge volumes
• Examples include Jin Ling, Raquel, Palace

6
Organised Crime

• Large scale smuggling
• Highly organised international operations
• Commercial scale manufacture and transport
• Huge profits
• Vast resources available to adapt quickly
• Often funds or is linked to other organised
  criminality

7
Conclusion

• Crucial part of Governments anti-smoking health
  agenda
• Ongoing threat as the demand remains high and the
  incentives remain strong
• Focusing on outcomes reductions in smoking
  prevalence, changes in public attitude a
  reduction in tax losses
• International collaboration with overseas
  enforcement agencies (FCTC)
• Multi-agency collaboration in the UK
• Were in this together your co-operation and
  support is key

8

• Tobacco Control - the Future
• NETSA Tobacco Control Project 2009
• North of England Action Plan

9

• Tobacco Control - Collaboration
• Trading Standards
• HMRC
• Department of Health
• Fresh Smoke Free Northeast
• LACORS
• Local Police Force

10

• Our overall aims are
• Reducing the number of illegal sales to under age
  people
• Disruption of the sale of illegal and counterfeit
  tobacco products
• Enforcing the prohibition on tobacco advertising

11

• Why control tobacco ?
• Smoking causes 87,000 deaths in England annually
• In spite of recent successes smoking rates in the
  North East are high at 22
• Smoking rates are higher amongst routine and
  manual workers

12

• Why Trading Standards?
• Experience of enforcement
• Under age sales work
• Links with Environmental Health Officers, HMRC,
  Police
• Duty on Local Authorities

13

• The Law
• Restricts advertising
• Controls point of sale displays
• Sets an age limit on sales
• Requires pack warnings
• Bans certain oral use tobacco products
• Makes duty paid mark mandatory
• Controls trade marks

14

• NoE Action Plan Our Contribution
• Provide support and expertise
• Develop the intelligence framework
• Organise and fund regional enforcement exercises
• Work with other national projects
• Be key partners in the North of England Project

15
North of England Action Plan Aim To increase
the health of the population through reducing
smoking prevalence by
Reducing the DEMAND for Smuggled
Counterfeit Tobacco
North East
North West
Yorkshire Humber
Reducing the SUPPLY of Smuggled Counterfeit
Tobacco

• Tony Emmerton, Programme Manager
• Office 0161 237 2960, Mob [phone]
• Email tony.emmerton_at_smokefreenorthwest.org.uk

16
NoE Action Plan - Objectives

• Developing Partnerships
• Engaging Health Community workers
• Generating Sharing Intelligence
• Identify Informal Markets Plan Preventive
  Action
• Enforcement (Planning, Action Review)
• Marketing Communications (MarComms)
• Working with Businesses
• Assessing Progress (Performance Management)

17
NoE Programme - Levels delivery

• Governance/Management
• Marketing Communications (MarComms) Strategy
• Intelligence Enforcement Strategy

Programme

• Regional Tobacco Policy
• Regional MarComms
• Strategic Alliances (HMRC, TS, Health, Police)

Regional Level

• Zonal Governance
• Tobacco Alliances
• Crime/Disorder Reduction Partnerships

Sub-Regional (Zonal) Level

• Communications
• Education Training
• Enforcement Planning

Local Area Level (PCT, TS Community
Workers) Local Community (Public, Deprived
Areas, Ethnic Groups)

• Communications
• Intelligence Gathering
• Enforcement Action