Tobacco Products Directive

We are helping the EU eliminate the No. 1 revenue-stream for organized crime in Europe: Tobacco Smuggling.

Truck Example

Loading one small truck (two axes) full of original cigarette packs purchased in Ukraine, at 0,88 EUR per pack in average, and transporting it to the UK to sell these packs at half of the UK market price, 10,27 EUR per pack being its regular market price, will result in around 1 Mio. EUR profits for tobacco smuggler. The penalty for this crime however is in many cases less than 12 months jail.
Low Risk but high reward is the reason why Tobacco Smuggling is the No. 1 revenue-stream for organized crime in Europe.

In Addition

  • Approximately 11% of the Tabacco market is illicit.
  • €12.5bn lost in tax for EU versus 'only' €1bn profit loss for tobacco manufacturers.
  • Illicit market share has grown for 8 consecutive years.
  • €1bn roughly equals the amount that the Tobacco industry has to invest to comply with TPD.
  • Most of the €12.5bn lost in taxes goes directly to the cash reserves of organised criminal bands in Europe.
  • The Illicit Trade Protocol (ITP) was created by the World Health Organisation (WHO) to support the Framework Convention on Tobacco Control (FCTC).

This sets out provisions for the tracking and tracing of products to the first customer. As for the original FCTC, the ITP is being promoted by the WHO globally and it is envisaged that over the next 5-10 years an extensive number of countries will undertake its implementation.

The recently negotiated revised Tobacco Products Directive (TPD) in the European Union contains extensive provisions for tracking and tracing at pack level.

The TPD will impact all 28 EU Member States. Full track and trace compliance, and security feature provisions are expected in all Member States by May 2019. However, there is nothing preventing Member States pushing for compliance at an earlier date.

The Tobacco Products Directive will become a reality by May 2019 and we are helping the EU to implement its directive across all 4,000+ Distributors and Retailers in Europe in order to eradicate tobacco illicit trade.