Outline

Cigarettes are among the most commonly traded products on the black market due to high profit margins, relative ease of production and movement and low detection rates and penalties. Illicit market share has grown for 8 consecutive years.

There are huge costs to be paid as a result of the illegal tobacco trade. Transnational tobacco companies, governments, and legitimate retailers are among the affected, along with millions of smokers affected since counterfeits are generally riskier to health than genuine products.

To prevent adverse impacts of tobacco smuggling and to eliminate all forms of illicit tobacco trade, regulators, governments and transnational tobacco companies have joined their efforts.

Therefore, in the fight against illicit trade, the Tobacco industry has been regulated in terms of traceability for almost ten years now via several agreements and regulations: the OLAF Agreement for the EU, HMRC in the UK, the newly implemented EUTPD (EU Tobacco Products Directive) and more regulations to come: Russia, UAE, KSA, many local ones (in African countries for example) and FCTC (Framework Convention on Tobacco Control – covering several countries, 40+, around the Globe).

EUTPD so far has been the most complex regulation ever implemented, which is live since May 2019 and covers everything from serialization to full track and trace for tobacco products within the whole Supply Chain. The EUTPD Implementing Acts were ready only since the end of 2017, with many adjustments implemented until just 2 months before go-live.

Every single finished goods movement must be tracked (down to pack level), from production (code request for serialization on the pack level), via the full Supply Chain until the last distribution point before retail.

On top of that, there is the need to report: orders, invoices, payments; linked to all tracked goods.

3keys can offer a high level of expertise in tobacco Track & Trace, analyzing, designing, implementing and monitoring highly complex requirements – with many resources experienced in this field within some of the largest tobacco companies worldwide.

EUTPD so far has been the most complex regulation ever implemented, which is live since May 2019 and covers everything from serialization to full track and trace for tobacco products within the whole Supply Chain. The EUTPD Implementing Acts were ready only since the end of 2017, with many adjustments implemented until just 2 months before go-live.

Every single finished goods movement must be tracked (down to pack level), from production (code request for serialization on the pack level), via the full Supply Chain until the last distribution point before retail.

On top of that, there is the need to report: orders, invoices, payments; linked to all tracked goods.

3keys can offer a high level of expertise in tobacco Track & Trace, analyzing, designing, implementing and monitoring highly complex requirements – with many resources experienced in this field within some of the largest tobacco companies worldwide.