Understanding and Progress of the UK's Tobacco Track and Trace System

Understanding and Progress of the UK's Tobacco Track and Trace System

The UK has been a frontrunner in implementing a Tobacco Track and Trace (TT&T) system to combat the illicit tobacco trade, which poses serious risks to public health, law-abiding businesses, and the economy. Introduced in 2019 as part of the UK’s commitment to the World Health Organization’s Framework Convention on Tobacco Control, the TT&T system aims to monitor the movement of tobacco products through the supply chain, from manufacturing to the point of sale. By assigning unique identifiers to each tobacco product, the system ensures that only legitimate, tax-paid tobacco reaches the market, thereby curbing the illegal trade that costs the UK government billions in lost tax revenue.

Number of ‘jump up’ thefts recorded by NaVSIS 2019-2023

The UK's TT&T system has seen significant advancements since its inception. Originally part of an EU-wide traceability system, the UK developed its standalone system following Brexit, fully operational from January 2021. This system mandates that all businesses involved in the tobacco supply chain, including manufacturers, importers, and retailers, register with the UK ID issuer and comply with stringent scanning and reporting requirements. The data collected is stored in a UK-specific repository, accessible primarily by HM Revenue and Customs (HMRC) to ensure compliance and investigate any discrepancies.

Penalties for not complying with Tobacco Track & Trace obligations in UK

Despite its progress, the TT&T system has faced challenges. One of the primary concerns is its limited accessibility, as only HMRC can currently access the traceability data. This has led to calls for broader access, particularly for law enforcement agencies such as the police, to better combat organized crime networks that thrive on the illicit tobacco trade. The system's potential to assist in identifying stolen tobacco products and other related crimes remains largely untapped, with stakeholders advocating for legislative amendments to expand the system's use.

The future of the UK's TT&T system lies in enhancing its functionality and accessibility. By integrating additional features, such as the ability to track stolen tobacco products and providing law enforcement agencies with access to the traceability data, the system could significantly disrupt the black market. Moreover, expanding the system to cover all tobacco products, as planned for May 2024, will further strengthen the UK's efforts to combat illicit tobacco trade and protect public health.

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