Stakeholders mobilise to defend industry as WHO prepares ‘evidence-based’ study on illicit duty-free tobacco

INTERNATIONAL. Travel retailers, supported by the Duty Free World Council and industry associations, are stepping up their engagement with authorities around the world against the backdrop of a threat to duty-free tobacco led by the World Health Organization (WHO).

The Protocol to Eliminate Illicit Trade in Tobacco Products is a WHO initiative under its Framework Convention on Tobacco Control.

The Protocol requires Parties to take comprehensive measures to prevent and counter the involvement of the tobacco industry in illicit trade. A key concern for the duty free & travel retail sector is Article 13.2, which seeks to link illicit trade in tobacco products to duty free sales.

Parties to the Protocol agreed to commission ‘evidence-based research’ to “ascertain the extent of illicit trade in tobacco products related to duty free sales”. That study is due to be published by September, in advance of the latest Meeting of the Parties (MOP4) in Geneva in late November.

DFWC and the wider industry has long rejected what it highlights as unfair and unsubstantiated allegations that duty-free & travel retail is a major contributor to illicit trade.

DFWC President Sarah Branquinho said in a media briefing: “We have been ramping up our activity industry-wide since the start of this year, in particular with our retailer partners and other stakeholders. They in turn are engaged with decision makers in key markets, supported by our associations.

“We know that duty free is not a source of illicit tobacco and the resources of WHO and enforcement agencies around the world would be better deployed targeting criminals who produce contraband and counterfeit products.

“In our retailers’ engagement with Customs authorities and other stakeholders, we have had unanimous feedback that they are satisfied with the controls and processes that are in place and they see duty free as a secure, transparent and trusted retail channel.”

A new independent study from York Aviation, which is being shared with governments, Customs and supra-national agencies, partners, supports the industry view that illicit tobacco in duty free is not an issue.

Among the key findings are that genuine duty-free products account for just 0.056% of illicit trade in tobacco worldwide; that a single clandestine factory produces nearly twice as much illicit tobacco as that accounted for by genuine duty-free products; and that illicit manufacturers continue to fraudulently mislabel their products as duty free.

The DFWC and partners are planning a robust response to the WHO study once it appears.

Branquinho said that industry stakeholders look forward to demonstrating that the sector is a partner in the fight against illicit trade and not a contributor to it.