Tobacco product traceability and security
Association of Independent Tobacco Specialists (AITS)
Email to Chair, 5 December 2017
Dear Sir,
We refer to the draft EU Regulations below relating to Articles 15 & 16 (Traceability & Security) of the EU Tobacco Products Directive (2014/40/EU):
Draft Commission Implementing Regulation on technical standards for the establishment and operation of a Traceability System for tobacco products;
Draft Commission Implementing Decision on technical standards for Security Features applied to tobacco products;
Draft Commission Delegated Decision on key elements of Data Storage contracts to be concluded as part of a Traceability system for tobacco products.
The Association of Independent Tobacco Specialists (AITS) represents over 80 independent Specialist Tobacconists and our members specialise in the business of ‘Other Tobacco Products’ (OTPs) i.e. cigars inc. cigarillos, pipe tobacco and snuff.
It is clear to us that the proposed EU system of traceability & security will be prohibitively costly and unworkable for our suppliers and that, unless some relief is granted. Our members will not be able to trade without these products.
We are therefore urging the UK Government to grant concessions to these products, which are predominantly manufactured and distributed by SMEs like our members, and attach a copy of our response to the Consultation.
In particular we would urge HMT to include an obligation to review the regulations for suppliers of OTPs when transposing into UK law the EU TPD's traceability and security measures.
We would be grateful if you could give due consideration to the significant threat which these measures pose to our members businesses. If you would like any further information please do not hesitate to contact us.
Attached for your information is a copy of AITS's consolidated response to the original Consultaion.
Kind regards,
Mike Davies, Connoisseur Ltd, On behalf of AITS
Gawith Hoggarth
Email to the Chair, 1 December 2017
Dear Sir
I refer to the measures on Traceability & Security under Articles 15 & 16 of the EU Tobacco Products Directive (2014/40/EU)which are under consideration by the EU Scrutiny Committee in the context of their transposition into the UK.
TPD Articles 15 and 16. Regardless of certain amendments which have made to the EU Regulations, compliance by OTPs, and also by the SMEs and micro-businesses involved in this specialist part of the trade, cannot be achieved on the grounds that the measures will prove prohibitively costly and unworkable. Theywill therefore have a disproportionate and devastating effect on these small businesses and the wholesale and retail customers they supply.
There is no illicit trade in Other Tobacco Products anywhere in the EU, and in the UK the duty levels are so high that there can be no diversion of tobacco products from the legitimate supply chain because it is simply not economically worthwhile.
Please find attached a presentation which outlines the very severe consequences for these businesses in this sector if the measures are introduced.
Kind regards
Christopher Mercer, National Sales Manager, Gawith Hoggarth
Imported Tobacco Products Advisory Council (ITPAC)
Email to the Chair, 1 December 2017
Dear Sir,
I represent the Imported Tobacco Products Advisory Council (ITPAC) which is a trade association representing the interests of 18 importers and distributors of tobacco products in the UK. The Association’s 15 Core Members consist mainly of small and medium (SME) sized private companies, most of whom employ less than 50 people. These companies focus on specialist tobacco product ranges such as cigars, pipe tobacco and snuff (OTPs).
We refer to the measures on Traceability & Security under Articles 15 & 16 of the EU Tobacco Products Directive (2014/40/EU) which are under consideration by the EU Scrutiny Committee in the context of their transposition into the UK.
The proposed EU Regulations, which in many areas represent significant gold-plating of the measures outlined in the original Directive, together with an extremely compressed implementation timetable, would oblige all companies in the tobacco supply chain to re-organise and modify their business and trading processes significantly beyond, in our view, what is necessary to establish a well-functioning tracking and tracing system as specified in TPD Articles 15 and 16.
ITPAC’s position remains that, regardless of certain amendments which have made to the EU Regulations, compliance by OTPs, and also by the SMEs and micro-businesses involved in this specialist part of the trade, cannot be achieved on the grounds that the measures will prove prohibitively costly and unworkable. They will therefore have a disproportionate and devastating effect on these small businesses and the wholesale and retail customers they supply.
It is worth emphasising also that the fundamental intention behind these measures is to assist in tackling illicit trade, when (i) there is virtually no illicit trade in OTPs anywhere in the EU, and (ii) in the UK the duty levels are so high that there can be no diversion of tobacco products from the legitimate supply chain because it is simply not economically worthwhile.
A Consultation on the 1st Draft of these Regulations closed on 2nd October 2017, and we are attaching a copy of ITPAC’s response which outlines the very severe consequences for these businesses in this sector if the measures are introduced.
We will be very pleased to provide any further information you might require, or answer any questions.
Kind regards,
Wyndham Carver, Secretary-General, ITPAC
Oettinger Davidoff AG/Davidoff Distribution (UK) Limited
Email to Chair, 4 December 2017
Dear Sir,
I am contacting you on behalf of Oettinger Davidoff AG and its UK affiliate Davidoff Distribution (UK) Limited and I refer to the measures on Traceability & Security under Articles 15 & 16 of the EU Tobacco Products Directive (2014/40/EU) which are under consideration by the EU Scrutiny Committee in the context of their transposition into the UK.
The proposed EU Regulations, which in many areas represent significant gold-plating of the measures outlined in the original Directive, together with an extremely compressed implementation timetable, would oblige all companies in the tobacco supply chain to re-organize and modify their business and trading processes significantly beyond, in our view, what is necessary to establish a well-functioning tracking and tracing system as specified in TPD Articles 15 and 16.
Our position remains that, regardless of certain amendments which have been made to the EU Regulations, compliance by OTPs, and also by the SMEs and micro-businesses involved in this specialist part of the trade, cannot be achieved on the grounds that the measures will prove prohibitively costly and unworkable. They will therefore have a disproportionate and devastating effect on these small businesses and the wholesale and retail customers they supply.
It is worth emphasizing also that the fundamental intention behind these measures is to assist in tackling illicit trade, when (i) there is virtually no illicit trade in OTPs anywhere in the EU, and (ii) in the UK the duty levels are so high that there can be no diversion of tobacco products from the legitimate supply chain because it is simply not economically worthwhile.
A Consultation on the 1st Draft of these Regulations closed on 2nd October 2017, and attached you will find a copy of Davidoff Distribution (UK) Limited’s response which outlines the very severe consequences for these businesses in this sector if the measures are introduced.
We will be very pleased to provide any further information you might require, or answer any questions.
Your Sincerely,
Manuel Cantalejos, Senior Manager, Legal Counsel, Oettinger Davidoff AG
McChrystals (Leicester) Limited
Email to the Chair, 1 December 2017
Dear Minister,
I refer to the recent EU Scrutiny Committee EU Track and Trace Proposals made on 22nd November 2017 and the recent EU Consultation which closed on 2nd October 2017 relating to:
Draft Commission Implementing Regulation on technical standards for the establishment and operation of a Traceability System for tobacco products;
Draft Commission Implementing Decision on technical standards for Security Features applied to tobacco products;
Draft Commission Delegated Decision on key elements of Data Storage contracts to be concluded as part of a Traceability system for tobacco products.
McChrystals (Leicester) Limited is a micro-organisation employing 9 people and we specialise in the business of nasal snuff tobacco.
It is clear to us that the proposed EU system of traceability & security will be prohibitively costly and unworkable for our company and that, unless some relief is granted, we will not be able to comply with the requirements.
We are therefore urging the UK Government to grant concessions to these products, which are predominantly manufactured and distributed by SMEs like ourselves, and attach a copy of our responses to the Consultation.
In particular we would urge HMT to include an obligation to review the regulations for businesses like ours operating in the OTP sector when transposing into UK law the EU TPD’s traceability & security measures.
We would be very grateful if you could give due consideration to the significant threat which these measures pose to our business, and remain available to provide any further information which you may require.
Kind Regards
Charles McChrystal, Director of Business Development
Email to Chair, 1 December 2017
Dear Sir Bill Cash, Chair of the EU Scrutiny Committee,
I am aware that you are seeking further information of what measures and what consultation has been undertaken for these proposals, TPD2 (2014/40/EU) Article 15 and 16 : Traceability and Security.
Please find attached and below my recent submissions to the EU as well as to Andrew Jones MP and Mel Stride MP.
I hope that the information I am providing helps your committee understand the impossible task we face in attempting to comply due to the artisan nature of our products made by small family run businesses, mainly in Latin America, versus mainstream machine made tobacco products produced by global tobacco companies; which is clear that this legislation to reduce illicit trade is really targeted towards.
Kind Regards
Scott Vines, Managing Director, Tor Imports Ltd