UK tobacco consultation proposes possible exemptions for duty-free

The UK government has published a consultation document on proposed tobacco control regulations which, if implemented, could dramatically affect the way tobacco is displayed in stores. According to the document, released by the Department of Health on October 13, exemptions will be imposed for the duty-free channel if the proposals are accepted. The consultation, which seeks public and stakeholder views on the proposed tobacco regulations under the Health Bill, will run until January 4 2010.

 

The consultation covers four sets of proposed regulations on tobacco displays, tobacco product price displays, advertising and display of tobacco products in specialist tobacconists, and requirements with regard to tobacco vending machines. One possible exemption could ensure that the needs of duty-free and bulk sale businesses are recognised. The proposed regulations could allow airside duty-free shops to display bulk tobacco provided no other products are on show nearby and that the display cannot be seen from outside the area.

 

In addition, the document acknowledges the potential impact of a complete tobacco display ban on the duty-free industry and recognises that fewer customers purchasing tobacco would result in a reduction in income at regional airports. The report said: “It is expected that these customers would purchase duty-free tobacco at the arrival airport, resulting in a displacement of trade from UK regional airports to airports in non-EU countries.”

 

Meanwhile, airport duty-free and cash-and-carry stores were also identified as selling tobacco differently from high street outlets during the consultation and development of regulations. The report added: “It was decided that [such] bulk tobacconists should receive different regulatory treatment taking into account the nature of their business.”