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Reemtsma Cigarettenfabriken GmbH/ an Imperial Tobacco Group - DCTA

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Reemtsma Cigarettenfabriken GmbH/ an Imperial Tobacco Group - DCTA

AIM AIDC Case Study Competition Participant

Illicit trade is a major and growing problem worldwide. Be it smuggling, counterfeit or tax evasion, governments are losing billions of dollars in tax revenues, legitimate businesses are being undermined and consumers are being exposed to poorly made and unregulated products.

Excisable fast moving consumer goods such as tobacco and alcohol are widely recognised to be among the most illegally traded products in the world. It is estimated that around 12% of the global cigarette market is illicit, equivalent to some 660 billion cigarettes each year, costing national governments more than US$40 billion a year in lost tax revenues.

Securing today’s global and complex supply chains and preventing illicit trade requires a coordinated, international response underpinned by proven, cost-effective technology solutions that work across national borders.

For this reason British American Tobacco, Imperial Tobacco Group, Japan Tobacco International and Philip Morris International have set up the Digital Coding & Tracking Association (DCTA) to help governments fight illicit trade. The DCTA promotes technical standards and digital solutions designed to secure supply chains for excisable fast moving consumer goods, such as tobacco and alcohol. The DCTA aims to provide all stakeholders – from finance ministries and customs to the trade and consumers – with the tools, information and capacity needed to really tackle illicit trade. The DCTA members legal market coverage in tobacco products is approx. 75%, excluding China. The annual turnover is around US$ 100 billion and the annual tax collected amounts to US$ 150 billion.
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