Monthly Archives: April 2009

Excise Delivery Agreement between HMRC and the UKBA for 2008-09

Key outcomes
UKBA will:
• Undertake a balanced range of border activity in response to agreed fiscal risks designed to ensure
that excise tax gap targets for the CSR ‘04 years are met and at least maintained through the CSR ‘07
years, in particular by:
• Helping restrict the size of the UK illicit cigarette market to no more than a 13% share by seizing
at least 20% of the illicit cigarettes targeted on the UK.
• Helping reduce the size of the illicit Hand Rolling Tobacco market by 1200 tonnes against
2003/04 levels by progressively raising the proportion of HRT seized to 15% and beyond.
Key outputs
In 2008/09 UKBA will:
• Seize in the range of 1.4 to 1.9 billion illicit cigarettes targeted on the UK.
• Seize in the range of 175 to 375 tonnes of illicit hand rolling tobacco targeted on the UK.
• Action all referrals and requests for frontier activity from HMRC Criminal Investigation teams
subject to detailed operating protocols on timeliness and precision of requests.
• Notify all qualifying seizures of tobacco to manufacturers and HMRC under the terms of the 2006
supply chain legislation within agreed timescales.
Other key activities
UKBA will:
• Contribute to the development and implementation of collaborative, multi-functional strategies aimed
at preventing and detecting alcohol, tobacco and oils duty evasion and fraud.
• Provide appropriate support for all agreed national alcohol, tobacco and oils strategy projects.
• Play a full and active part in delivery of excise strategies, including by participating in appropriate
Director-level steering groups and working level delivery groups.
• Follow up excise border activity efficiently and effectively, in accordance with HMRC policy (e.g.
routine appeals against excise seizures, excise restoration reviews and complaints, storage/disposal
of seized good).
• Further increase its visibility at smaller locations including regional airports in order to reassure the
public and deter excise smuggling activity.
• Introduce effective, alternative techniques to ensure a wider coverage of ports and airports.

Senate committee approves stricter smoking ban

The state Senate Health Committee voted Wednesday for a strict smoking ban in North Carolina, eliminating plans to exempt bars and nightclubs from the restrictions.

Strong evidence supporting plain packaging for all tobacco products on the eve of Lords vote

A new study presented today in Dublin  has found a significant link between cigarette branding and ‘false beliefs’ among smokers and children. The authors argue that this link provides strong evidence for the introduction of plain packaging  for all tobacco products in the UK.

Displaying their ignorance on smoking

In December 2008, the health secretary for England, Alan Johnson, announced that the government would proceed with legislation banning the display of tobacco products in shops. According to Johnson, the logic was impeccable, as young people ‘see the point of display and as a result of seeing it, it encourages them to take up smoking’. Since then, the legislation, which is incorporated in the bill providing a constitution for the National Health Service, has gradually made its way through the House of Lords.

Reynolds reports decline in first-quarter net income

A substantial charge taken to reflect lower trademark values for some nongrowth cigarette and smokeless brands contributed to Reynolds American Inc. posting just $8 million in net income for the first quarter today.

Tobacco tax rejected by House panel

A proposal for a $1-per-pack cigarette tax increase was snuffed out by the House Ways & Means Committee in an 11-7 vote Tuesday, signaling probable doom for any proposals to generate major new sources of tax revenue during the current lawmaking session.

300 jobs could be cut at ad firm Burnett

A rumored sharp drop in global ad spending by Philip Morris could spell big trouble for Leo Burnett/Chicago, where the cigarette giant has long been one of the agency’s flagship accounts.

Tobacco International Action

The illicit trade in tobacco products is a serious global problem. As such, enforcement agencies must work together to tackle international organised crime groups operating outside of the jurisdiction where the tax loss occurs.

Smuggling and health

While the primary focus of HMRC and UKBA activity is reducing revenue losses from smuggling, it is important to remember that revenue-raising is not the only driver for the UK’s tobacco taxation policy. The price mechanism is generally accepted to be the most effective
population-level policy lever available to Government to combat smoking.