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Duty-free tobacco under threatDuty-free tobacco under threat
Andrew Pentol
24-Oct-2008
The Framework Convention Alliance has called for a ban on all duty-free tobacco if there are links to illicit trade
Duty-free tobacco sales remain under threat after the Intergovernmental Negotiating Body (INB), set up by those countries which ratified the World Health Organization’s (WHO) tobacco treaty—the Framework Convention on Tobacco Control (FCTC)—were meeting in Geneva this week to develop a protocol outlining ways to reduce the illicit trade in tobacco products. The main anti-tobacco organisation, the Framework Convention Alliance (FCA), called for a provision in the protocol that would ban all duty-free tobacco sales provided there are links to illicit trade and lobbied for this during the discussions.
The final content of the protocol is not likely to be agreed until 2010, giving the European Travel Retail Council (ETRC) time to encourage industry stakeholders to urge the government to reject the proposals in the protocol relating to duty-free tobacco before they are approved.
ETRC secretary general Keith Spinks said in a statement: “Governments know that retailing within traditional duty-free markets is a highly regulated and controlled trading environment, subject to constant customs, scrutiny and supervision, with sanctions available for abuse or misuse, including the withdrawal of licences and/or the authority to trade. Sales of tax- and duty-free tobacco products are transacted in the most controlled retail environment for products subject to excise duties and other taxes and do not contribute to the illicit trade in tobacco products or to commercial smuggling.”
He also called for the industry to pull together and encourage governments to reject the proposals. “The industry in all countries must now take urgent action to lobby their regulatory authorities, government ministries and administrations, as well as mobilising support from all potential allies to call for the removal of any references to duty-free within the protocol on illicit trade,” he concluded.
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