This article is the third in a series on the topic of illicit trade and its relationship with free trade zones (FTZs). It is intended to foster consideration and discussion for secure traceability solutions, building upon the analyses provided in the articles published in this newsletter in March and August 2023.

Looking back over the year that was, three key developments stand out from the rest, as captured in this article.

While tax stamps often use diffractive effects to protect against counterfeiting, the process for making these stamps can often be time consuming and limited to printing firms with specialist equipment. But that could be about to change!

The Malawi Revenue Authority (MRA) has announced it will be expanding the use of excise tax stamps to a broader range of excisable products beyond cigarettes, following a 2021 amendment to the country’s Customs and Excise Act.

Tax stamp and traceability developments in Argentina, Ecuador, Panama, and Venezuela; Kenya Revenue Authority seeks tax stamp price increase in bid to grow revenue collection;

This month, we are pleased to present the latest entry in our ongoing interview series exploring the professional perspectives of International Tax Stamp Association (ITSA) members.

Never a dull day in Latin America! The recent general election in Argentina saw flamboyant libertarian Javier Milei ascend to the presidency, with a promise to re-invent the Argentine economic wheel by eliminating not only the Argentina peso, but also many ministries and thousands of government employees.

The Uganda National Bureau of Standards (UNBS) has revealed that the country’s fuel marking and quality monitoring programme has led to a drastic reduction in fuel adulteration, from 30% in 2015 to less than 0.5% this year.

Recently, the Pan American Health Organization (PAHO) and Tabaconomía, a tobacco control think-tank that is part of Bloomberg Philanthropies, held a webinar to discuss the status of tobacco taxation post-COVID-19.

Demax Holograms was one of the first manufacturers of security holograms in eastern Europe and now sells its products to over 70 different countries. It took the opportunity to present its latest nano-optical elements for physical security at the recent Tax Stamp & Traceability Forum™ in Tbilisi, Georgia (2-4 October 2023).

In early October, the Georgia Revenue Service (GRS) co-hosted the Tax Stamp and Traceability Forum™ with Reconnaissance International to showcase the success of its local solution and discuss the latest developments in the industry.

With three new companies recently added to the growing membership base of the International Tax Stamp Association (ITSA), the total number of members now stands at 28 – the highest level yet!

The 10th session of the Conference of the Parties (COP10) to the WHO Framework Convention on Tobacco Control (WHO FCTC), and the Third session of the Meeting of the Parties (MOP3) to the Protocol to Eliminate Illicit Trade in Tobacco Products, has been postponed from November 2023 to as early as possible in 2024.

During the summer of 2021, I looked at the illicit trade that had started to spin out of control in Australia in the wake of the pandemic.

Singapore is making amendments to its Free Trade Zones Act to enhance regulation and control of goods that flow through the 10 free trade zones (FTZs) in the country.

The International Tax Stamp Association (ITSA) has responded to a claim by economic advisory firm Oxford Economics (OE) that tax stamp-based track and trace systems are not compatible with the WHO FCTC Protocol to Eliminate Illicit Trade in Tobacco Products, while ‘fully digital’ solutions, based on open standards, are.

Oumolat Security Printing, owned by the Central Bank of the United Arab Emirates (CBUAE), has entered into a strategic partnership with SICPA to print enhanced tax stamps and track activities through the integration of advanced technologies.

As previously reported in Tax Stamp & Traceability News™, the international standard for excise tax stamps, ISO 22382:2018, is now due its five- year review, in accordance with ISO procedures (the International Organization for Standards).

This month, we have a new entry in our ongoing interview series investigating the experiences of International Tax Stamp Association members, diving into their personal perspectives on the tax industry, today’s challenges and opportunities, and tomorrow’s potential advances.

The governor of California, USA, has approved a law to eliminate single-use plastic RFID tags for tracking and tracing marijuana plants.

One of the best comments coming out of the 11th Tax Stamp & Traceability Forum™ (TSTF), held from 2-4 October in Tbilisi, Georgia, was from a revenue authority attending the forum for the first time. They said that now that they’d seen first-hand what they’d been missing by not attending this event, they would be sure to attend all security printing conferences in future.

Whether you use tax stamps or you don’t use tax stamps, let’s face it, illicit trade still exists. The difference is, tax stamps and associated track and trace and production monitoring systems help make illicit trade stand out more (like a sore thumb), plus they make it easier to trace illicit trade back to its origin, and identify at what point in the supply chain legal trade may have become illegal trade.

Reconnaissance International is pleased to announce the release of its new publication – ‘Smartphones for Authentication’ – the only publication of its kind.

This month, we continue our interview series exploring the experiences of International Tax Stamp Association (ITSA) members, who offer personal perspectives on the tax industry, today’s challenges and opportunities, and tomorrow’s potential progress.

As a large number of Tax Stamp & Traceability News™ readers are already aware, tobacco and alcohol producers spend significant amounts of time and effort lobbying against the installation of tax stamp and traceability systems that are fully managed by national revenue authorities.

Nanotechnology has been a fertile breeding ground for authentication and brand protection devices – given that structures that can be controlled at the nanoscale (roughly the size of a few atoms or molecules) exhibit responses to light that are distinctive and near impossible to replicate. Now, a team of researchers and entrepreneurs has launched a new optical ink feature into the market.

Since the introduction of its digital tax stamp, tracing, and reporting programme, Uganda has experienced continuous and sustained acceptance, implementation of and compliance with the programme.

As previously announced in Tax Stamp & Traceability News™, it has been five years since the international standard for tax stamps (ISO 22382:2018) was published by the International Organization for Standards (ISO), so in accordance with ISO procedures, this standard is now due to be reviewed.

Following the news from the UK that tougher sanctions are being introduced on illicit tobacco sellers, this article takes a closer look at the close-knit network of organisations engaged in tackling illicit trade at retail level in the country.

This article is second in a series that aims to educate readers on the dynamic nature of free trade zones (FTZs) and key issues that warrant addressing, and offers a means by which suppliers of secure track and trace technologies may find opportunities in this potential new market. The first article can be found in the March 2023 issue of this newsletter.

Established in 1952, the WCO (World Customs Organisation) is the global centre of customs experience, representing 185 customs administrations that collectively process approximately 98% of world trade.

Smoke Free Partnership, a coalition of NGOs working on EU policy analysis and advocacy linked to the implementation of the WHO Framework Convention on Tobacco Control (FCTC), has published a report by Luk Joossens, Senior Advisor, on the status of track and trace in countries that are party to the FCTC Protocol to Eliminate Illicit Trade in Tobacco Products.

Smart packaging is a term that means different things to different communities. The aim of this article is to take a wider look at trends in smart packaging and consider some of the potential implications for tax stamps and track and trace solutions.

This month, we continue our interview series exploring the experiences of International Tax Stamp Association (ITSA) members, who offer their perspective on the tax stamp industry, and their predictions of challenges and opportunities that lie ahead.

It is International Standards Organization (ISO) practice to review its standards every five years. So, ISO 22382, titled ‘Guidelines for the content, security, issuance, and examination of excise tax stamps’, which was published in 2018, will now go through this regular review.

KPMG has released the 2023 edition of its annual study, ‘Illicit Cigarette Consumption in the EU, UK, Norway, Switzerland, Moldova and Ukraine’, which reveals an overall increasing rate of illicit consumption in the region, especially in France.

Nanobrick, the South Korean company founded in 2007 by its current CEO, Jae-Hyun Joo, is building a presence in the security and authentication field with what it calls its ‘active nano platform’ (ANP). Tax stamps are one of its target markets.

De La Rue has announced that its Authentication division is on track to exceed £100 million in revenue for fiscal year 2024, demonstrating good growth versus 2023 results.

India’s government banknote printer, Security Printing and Minting Corporation of India Ltd (SPMCIL), is looking to target the tax stamp export market. The organisation is inviting bids for consultants or agencies to represent it globally for procurements related to excise labels and other security products, including banknotes, coins, security paper, and inks.

At the recent World Customs Organisation (WCO) Council session, in Brussels, Edward Kieswetter, Commissioner of the South African Revenue Service (SARS), was elected as chairperson of the Council, replacing Shaikh Ahmed bin Hamad Al Khalifa, Director General of Bahrain Customs.

Revenue authorities, experts, and solution providers from around the world have confirmed their speaking slot at the Tax Stamp & Traceability Forum, taking place in Tbilisi, Georgia from 2-4 October 2023.

This month, we present the sixth interview with an International Tax Stamp Association (ITSA) member, providing their perspective on the present opportunities and challenges of the industry, and the developments they anticipate for its future.

The third session of the Meeting of the Parties (MOP3) to the WHO Framework Convention on Tobacco Control (FCTC) Protocol to Eliminate Illicit Trade in Tobacco Products will take place on 27-30 November in Panama, and the provisional agenda has now been released.

High security printing is based on features made available exclusively for that market. In the case of special inks, for example, this includes pigments with several modes of fluorescence, rare earth pigments, or different types of color shifting.

A little over two years ago, Costa Rica was in the throes of allegations by TRACIT (Transnational Alliance to Combat Illicit Trade) that the best way to fight illicit tobacco trade was through a close collaboration between private sector companies (eg. tobacco producers) and the public sector.

Authentix has announced that it has acquired Netherlands-based Royal Joh Enschedé, a leading specialty printing and security solutions provider, from investment firm Nimbus.

OpSec Group has announced that it will list on the NASDAQ stock exchange by merging with a special purpose acquisition company (SPAC) – Investcorp Europe Acquisition Corp. The SPAC is an arm of OpSec’s current owners – the private equity firm Investcorp Technology Partners.

The programme for the Tax Stamp & Traceability Forum™ (TSTF) is almost finalised and includes some interesting presentations by tax authorities and solution providers alike.

We continue our interview series exploring the perspective of International Tax Stamp Association (ITSA) members, who offer some of their experiences within the tax stamp industry, and their predictions of challenges and opportunities that lie ahead.

In the May 2023 issue of Tax Stamp & Traceability News™, we reported on how the tobacco lobbying concerns of several EU parliament members were largely being ignored by the European Commission.

Earlier this year, in an update on Latin America in this same newsletter, we posited that Argentina’s AFIP (Administración Federal de Ingresos Públicos), the government institution in charge of the country’s tax policies, would be toughening up its stance against illicit tobacco trade and tax evasion.

Cambodia has revealed the features of its new cigarette tax stamps to vendors in prime locations across the country, thanks to a joint effort between the General Department of Taxation (GDT) and the General Department of Customs and Excise (GDCE), reports Khmer Times.

As the first G20 nation to legalise recreational cannabis, Canada is well-placed to set the regulatory blueprint for the world. But there are still kinks to be ironed out, including a call by operators for a single national excise stamp to replace the current provincial stamps.

As the traditional linear 1D barcode celebrates its 50th birthday, its days could be numbered now that GS1 – the global body responsible for barcode standards – prepares for the worldwide acceptance of younger, 2D codes in retail outlets by the end of 2027.

In April, the Informal European Parliamentary Working Group for preparing the revision of the EU Tobacco Products Directive (IPWG TPD) held a workshop with civil society organisations, to address the lobbying efforts and ‘soft power’ of the tobacco industry to influence EU policies.

One of the most rapidly and widely embraced treaties in United Nations history, the World Health Organisation (WHO) Framework Convention on Tobacco Control (FCTC) celebrates its 20th anniversary in May 2023.

The Ethiopian Ministry of Finance plans to increase excise tax revenue by three to four times through the implementation of excise stamps, traceability, and an advanced excise management system.

Ukraine’s Ministry of Digital Transformation has announced that new excise stamps for tobacco and alcohol will be introduced in the country from 1 March 2025, and that they will be linked to the country’s extensive e-governance platform.

We continue our series of interviews with members of the International Tax Stamp Association (ITSA), by talking with Gábor Zsámboki from ANY Security Printing in Hungary.

The programme for the Tax Stamp & Traceability Forum™ (TSTF) is busy taking shape, with the call for papers deadline coming up at the end of May.

This month, we continue our series of interviews with members of the International Tax Stamp Association (ITSA), who share their experiences of the tax stamp industry and look ahead to some of the challenges and opportunities yet to come.

The Switzerland-based Thymaris group is a second-generation family business that has been operating since 2000. The business provides integrated authentication technologies (software and machines) on a global scale. Its mission is to close the security gap in existing barcode serialisation infrastructures.

At its recent conference held in April, the US Tax Foundation, which is the nation’s leading independent body on tax policy, presented research on some of the most pressing issues in global taxation, including global minimum tax, carbon tax, and excise tax.

Tobacco stakeholders and the European Commission disagree over the practical value of the EU track and trace system on tobacco products, implemented across all member states in May 2019 as part of the Tobacco Products Directive, reports EURACTIV.

This article explores the concepts and current thinking related to AI and the author has a chat with AI to find out what AI ‘thinks’ about tax stamps.

Prime Minister Najib Mikati of Lebanon was guest of honour at the recent launch of a countrywide authentication and traceability programme to combat tobacco illicit trade and promote economic reform.

This article represents the first in a series that aims to educate readers on the dynamic nature of Free Trade Zones (FTZs) and key issues that need addressing, as well as, ideally, offer a means by which suppliers of secure track and trace technologies can address this heretofore untapped potential new market.

This month, we continue our series of interviews with members of the International Tax Stamp Association (ITSA), who share their experiences of the tax stamp industry and look ahead to some of the challenges and opportunities yet to come.

In January, more than 60 officers from the French National Gendarmerie (Gendarmerie Nationale) raided a location in France, which was found to be an underground factory for counterfeit tobacco. The investigation was initiated as a result of information shared with France by Europol at the end of 2022.

Every year, on 24 February, India observes Central Excise Day, as a way of highlighting the essential role of the Central Board of Excise and Customs (CBEC) in the country’s industrial development.

De La Rue has announced the multi-year extension of tax stamp/security seal contracts across nine countries in Europe and Africa.

In September this year, Reconnaissance International will release a new publication – ‘Smartphones for Authentication’ – the only publication of its kind.

Luminescence Sun Chemical Security (LSCS) has acquired InData System’s (InData) patented invisible barcode reading technology, which consists of dedicated readers that verify and decode ‘invisible’ (fluorescing) codes.

This short series on emerging technologies was a result of presentations made at the Tax Stamp & Traceability Forum™ (TSTF), in May 2022. This final article in the series picks up on one theme not yet covered – the topic of substrates. But first we should consider why this debate should be defined as an emerging technology.

Secure marking and excise taxes operate hand in glove. But excise duties usually account for a small percentage of countries’ overall tax take.

Gerben van Wijk is Sales and Marketing Director of Luminescence Sun Chemical Security (LSCS) and has been a Board Member of the International Tax Stamp Association since 2018, taking over as Chair in May 2022.

In India, each state has the power to control and regulate its own liquor trade. Given that the country comprises 29 states and seven union territories, each with their own set of laws, this presents a major challenge for the alcoholic beverage industry – a challenge that is further exacerbated by the limitations placed on the movement of alcohol between states.

It’s not all about new constitutions, riots and uncontrollable forest fires lately in Chile. There’s actually been some interesting news with respect to traceability, with press releases from both the tax authority, Servicio de Impuestos Internos (SII), and the national customs service, Aduanas de Chile.

The Gambia’s Ministry of Finance and Economic Affairs, in partnership with the Gambia Revenue Authority (GRA), has signed a concession agreement with SICPA for the implementation of a revenue mobilisation platform for excisable goods, telecommunication services, and refined fuels.

We are pleased to announce that this year’s Tax Stamp & Traceability Forum™ will take place from 2-4 October 2023, in the wonderful city of Tbilisi, Georgia.

There is a tremendous amount of activity afoot in Latin America, be it with new governments promising amazing changes amidst the reality of high inflation and worldwide economic instability, or simply because it’s time for existing governments to get back to work after the first real holiday season post-COVID.

Across tax and customs administrations, there are several key trends that are of some relevance to the secure marking and traceability space.

Looking at the interplay of challenges arising from the implementation of Pakistan’s tax stamp and production monitoring system, during 2021 and 2022, one might say Pakistan is riding a perfect storm.

Romanian authorities are investigating China Tobacco’s main factory in Europe, outside Bucharest, in connection with the possible smuggling of large quantities of cigarettes, reports OCCRP.org.

A team from the Institute of Forensic Science and Criminology at Panjab University, India, claims to have conducted the first study of its kind to analyse cigarette filters using ATR-FTIR spectroscopy in combination with statistical models.

Metrc, one of the two leading providers of technology systems for the regulation of cannabis in the United States, has announced the launch of its sustainable radio frequency identification (RFID) plant tags, designed to reduce waste while maintaining durability and RFID efficiency.

Kenyans could soon pay more for alcohol, cigarettes, juice and cosmetic products as the Kenya Revenue Authority seeks to increase the price of excise tax stamps (which are used on all of these product groups), as part of its measures to increase revenue collection.

This short series on emerging technologies has covered a number of topics over previous months. It seems fitting as we commence 2023 to now consider the topic of sustainability, a ‘trending’ theme through recent years but one that I see having an increasing impact on our market sector.