 2007 Johns Hopkins Bloomberg School of Public Health Section B Strategies to Control Illicit Trade

 2007 Johns Hopkins Bloomberg School of Public Health 2 Global Tobacco Control and Illicit Trade Global tobacco control recognizes the importance of controlling the smuggling of cigarettes Global recognition needed so that international community can acknowledge that the control of the following are considered equally important: illicit trading, manufacturing, and counterfeiting Global recognition needed to acknowledge that the illicit trade of non-cigarette smoking forms of tobacco and chewing forms of tobacco are also an issue

 2007 Johns Hopkins Bloomberg School of Public Health 3 FCTC Article 15 Recognizes the need for the elimination of all forms of illicit trade Development/implementation of national laws Sub-regional/regional/global agreements  The first Conference of Parties (COP1) has identified control of illicit trade as one of the first areas for development of a protocol

 2007 Johns Hopkins Bloomberg School of Public Health 4 Strategies to Control Illicit Trade Not a customs issue Diverse strategies/multisectoral issues  Information/data from agriculture/industry/revenue  Control of the supply chain  Sharing of intelligence/cooperation between agencies within the country/with other countries

 2007 Johns Hopkins Bloomberg School of Public Health 5 Strategies to Control Illicit Trade Also requires rationalization of government’s policy  Taxation and trade  World Trade Organization (WTO) Bound Rate (150% and 100%)  Imposition of tariff barriers/non-tariff barriers (not contrary to WTO/General Agreements on Tariffs and Trade (GATT) principles)  E.g., control of supply chain through licensing

 2007 Johns Hopkins Bloomberg School of Public Health 6 Strategies to Control Illicit Trade Discuss some of the specific strategies recommended in the FCTC Discuss some recommendations given by the WHO Expert Group constituted to develop the template protocol on illicit tobacco control

 2007 Johns Hopkins Bloomberg School of Public Health 7 Strategies to Control Illicit Trade Licensing  To control the supply chain  Facilitate enforcement  Provide database  Issues:  Additional expenditure/cost  Corruption  Capacity to maintain/share data

 2007 Johns Hopkins Bloomberg School of Public Health 8 Strategies to Control Illicit Trade Anti-money laundering  Need to build the ability to track payments for tobacco- related transactions  Issues:  Parallel economy/black market/cash transactions outside banking channels rampant and anti-money laundering has ramifications beyond tobacco trade

 2007 Johns Hopkins Bloomberg School of Public Health 9 Strategies to Control Illicit Trade Tracking and tracing  Tracking: ability to monitor tobacco products from a place of manufacturing, through a distribution chain, to intended market of retail sale  Tracing: ability to recreate route (post audit/seizure) from place of manufacture, through distribution chain Methods for tracking and tracing: covert/overt  Marks and numbers  Country of origin  Holographic stamps

 2007 Johns Hopkins Bloomberg School of Public Health 10 Strategies to Control Illicit Trade Tracking and tracing  Using banderol stamp(s)  Embedded information about the manufacturer/country of origin; place of import/destination, etc.  E.g., California (U.S.), Brazil, and Vietnam  Holographic marking  Counterfeiting by manufacturers is still possible

 2007 Johns Hopkins Bloomberg School of Public Health 11 Strategies to Control Illicit Trade Record keeping  At manufacturers and distributors Regulating internet sales  Licensing Security and preventative measures

 2007 Johns Hopkins Bloomberg School of Public Health 12 Strategies to Control Illicit Trade Enhanced law enforcement capacity  Number of law enforcers  Resources  Technology  Training

 2007 Johns Hopkins Bloomberg School of Public Health 13 Strategies to Control Illicit Trade Enhanced law enforcement capacity  Look at how to detect offenses  Look at how to prevent safe havens  Impose strong sanctions and penalties for offenses  Create laws for search, seizure, and confiscation of illicit goods  Create guidelines and policies for destruction and disposal of seized tobacco products  Look at how to dispose of proceeds of crime and seizure of assets

 2007 Johns Hopkins Bloomberg School of Public Health 14 Strategies to Control Illicit Trade Enhanced law enforcement capacity  Special enforcement techniques  E.g., e-surveillance, undercover agents, controlled delivery operations  Jurisdiction International cooperation  Information sharing  E.g., statistical trade data, operational investigation data, operational data protection, and safeguards

 2007 Johns Hopkins Bloomberg School of Public Health 15 Strategies to Control Illicit Trade International cooperation  Need to build capacity for technical assistance and cooperation in scientific, technical, and technological matters  E.g., transfer of technology in...  Law enforcement capacity  Intelligence collection  Tracking and tracing  Information management  E-surveillance  Forensic analysis

 2007 Johns Hopkins Bloomberg School of Public Health 16 Strategies to Control Illicit Trade International cooperation  Cooperation  In respect of investigation and prosecution of offenses  Training  Mutual legal and administrative assistance  Designated authority who would have the mandate to share information across different countries  Extradition

 2007 Johns Hopkins Bloomberg School of Public Health 17 Strategies to Control Illicit Trade: Summary Transparent system of revenue administration Action against corrupt officials Strong penalty/civil proceeding against tax evaders Customs intelligence collection; information sharing agreements with...  Other agencies  Other countries

 2007 Johns Hopkins Bloomberg School of Public Health 18 Strategies to Control Illicit Trade: Summary Develop country-specific strategies to curb illicit trade Encourage bilateral agreements of customs cooperation and mutual agreements on...  Rules of origin  Tracking and tracing Agree on multilateral agreement of mutual cooperation and capacity building leading to the development of intelligence and information sharing on illicit tobacco trade Negotiate the FCTC protocol keeping in mind the capacity building needs of developing countries

 2007 Johns Hopkins Bloomberg School of Public Health 19 Summary Evidence shows that illicit trade impacts on public health Global evidence shows that elimination of illicit trade is essential to tobacco control  Seen in both developed and developing countries Any strategy should encompass all forms of tobacco Article 15 of the FCTC provides the broad strategy to control illicit trade of tobacco Strategies for effective control of illicit trade need to include many different sectors of society and agreements among countries

 2007 Johns Hopkins Bloomberg School of Public Health 20 Summary Strategies need to look at many different areas:  Control of supply chain  Anti-money laundering  Law enforcement  International cooperation Appreciate constraints in these sectors Build upon knowledge from different countries Seek technical assistance and cooperation Build upon agreements amongst countries