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Image header Agence Europe
Europe Daily Bulletin No. 10860
Contents Publication in full By article 27 / 28
ECONOMY - FINANCE - BUSINESS / (ae) anti-fraud

Clamping down on illegal tobacco

Brussels, 05/06/2013 (Agence Europe) - On 6 June 2013, the European Commission unveiled a strategy to clamp down on the illegal trade in cigarettes and tobacco, which is undermining attempts to reduce smoking levels and depriving member states' budgets of some €10 billion in lost duty each year.

The plan in set out in a communication from the Council of Ministers and European Parliament and it is hoped to bring it on stream at the end of 2015. It aims to remove the incentives for contraband tobacco and illegal tobacco sales by improving implementation of cigarette duty rules and introducing common standards; improving security along the supply chain, by transposing and applying across the EU a World Trade Organisation protocol on tackling the illegal tobacco trade, a protocol annexed to the WTO anti-smoking convention; introducing repressive tax and customs measures with action in the field, joint customs operations, technical support for countries, better exchange of information and greater cooperation with countries of origin and transit; stronger penalties, harmonisation of the definitions of breaking customs rules and non-criminal penalties.

The action plan analyses existing legislation and practices, highlighting weaknesses and gaps, such as the over-complex nature and disparity of existing rules, substantial prices differences among the member states, grey areas that encourage people to get round the rules and more practical problems like lack of expertise and lack of resources, insufficient cooperation among authorities in different countries, corruption at customs and the like. It recommends practical measures to improve the exchange of information and cooperation within the EU and with non-EU countries (information technology, databases, exchange of best practice and the like). The measures recommended in the communication will be followed up and the Commission will unveil a progress report three years after publication. (FG/transl.fl)

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ECONOMY - FINANCE - BUSINESS