UK Launches New Tobacco Product Tracking System

The UK has implemented a new tobacco product tracking system established and operated by Dentsu Tracking. Launched on July 1, the system provides traceability across the entire tobacco supply chain for the UK government. This system is part of the UK's anti-illicit trade strategy, supporting HM Revenue and Customs in cracking down on illegal trade.

Philippe Castella, Managing Director of Dentsu Tracking, has released a statement expressing the company's pride in working with the UK's HM Revenue and Customs to combat the illegal tobacco trade. Castella highlighted that Dentsu's digital system was specifically tailored to meet the policy goals of HM Revenue and Customs, with the aim of addressing the unique characteristics of the UK market. He added that the system ensured the highest level of visibility for HM Revenue and Customs, allowing the government to effectively monitor the entire tobacco supply chain in the UK.

A new tracking system utilizing digital technology has been implemented to monitor the flow of legal tobacco products and enable British authorities to detect and combat various forms of illegal trade. This will curb the distribution of non-tax compliant and non-compliant products in terms of content, packaging and other regulations, while increasing national tax revenue and protecting citizens and legitimate businesses.

The new system was designed in accordance with all applicable UK and international laws, including full compliance with the FCTC Protocol to Eliminate Illicit Trade in Tobacco Products which requires signatory parties to ensure tracking and tracing of tobacco products along the manufacturing and key distribution points.

Dentsu's system is able to convert collected supply chain data into useful information through complex data analysis, aiding UK authorities in identifying potential fraudulent activity. According to Dentsu, the new system provides real-time detailed analysis, statistical data, and alerts for the UK's tax and customs agency, with some stakeholders describing it as a "ground-breaking" development.

Government Business Director Jan Hoffman stated, "At Dentsu Tracking, we firmly believe in the added value of data tracking, which is as powerful as the supply chain insight provided to government institutions by this system." "Therefore, simply collecting data is not enough. We generate strong business intelligence to assist UK authorities in targeted control and real-time investigations.

All aspects of the tobacco industry including manufacturing, importing, exporting, storing, distributing, and selling, as well as any tobacco products entering or passing through the UK, now require the use of a new tracking system. Since May 2019, tracking requirements have been in place for cigarettes and roll-your-own tobacco, and from May 20, 2024, all other tobacco products must also comply with these regulations.

In November 2021, Dentsu Tracking was appointed as the supplier to establish and operate a new tobacco tracking system in the UK through a public procurement process. Dentsu replaced the former supplier, De La Rue.

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