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Select committee inquiry

Tobacco smuggling

Closed

Home Affairs Committee · Opened 10 July 2013 · Closed 13 January 2015

2 recommendations · 3 conclusions
Inquiry on parliament.uk ↗

What the inquiry looked at

“An inquiry into tobacco smuggling.”

The committee's words, from the inquiry page on parliament.uk ↗.

What the government said

The government responded on 31 October 2014.

Summary written by Accountability Index from the government's response.

The government's response describes changes already made to HMRC and Border Force joint working and says current supply chain legislation, communications and guidance are in place or under review, while linking standardised packaging to a consultation.

  • On information sharing, it says Border Force refers all cases with scope for sanctions to HMRC, and a strengthened joint process is expected "to be agreed by December 2014".
  • On penalties for manufacturers, it states the supply chain legislation "has succeeded in its objective", that the relevant criteria are already published in Notice 477, and that HMRC is reviewing the current guidance.
  • On publicity, it says HMRC is "currently revising its communications strategy", with publicising successful operational activity "a key feature" of the approach.
  • On standardised packaging, it points to a consultation published on 26 June 2014 that will inform the decision, and says HMRC is assessing the potential effect on the illicit market. On track and trace, it says transposition of the Directive's requirements "will need to be completed by 2019" for hand-rolling tobacco and cigarettes.

Read the government's response ↗ Read the report ↗ Report an error

How the inquiry ran

Each dot is a dated item listed on this page, from the inquiry's opening on 10 July 2013 to its close on 13 January 2015.

  1. Oral evidence 2 sessions
  2. Report 14 Jun 2014
  3. Government response 31 Oct 2014

What it recommended 2 recommendations · 3 conclusions

1We are worried that not enough is being done by the Government and its appropriate...
Recommended (the committee's words)
We are worried that not enough is being done by the Government and its appropriate agencies to combat the problem of tobacco smuggling at source. We urge the members of HMRC and Border Force set up firm relationships with their counterparts in countries such as Malaysia. This will ensure that intelligence and best practice is shared.
2While there have been some high profile successes, over the last three years the numbers...
Concluded (the committee's words)
While there have been some high profile successes, over the last three years the numbers of prosecutions and convictions for organised crime cases involving tobacco have fallen. We do not believe that these numbers are decreasing due to the reduction in this type of crime and are deeply concerned that these figures may indicate a reduction in enforcement action.
3The lack of media reports relating to prosecutions and enforcement activity in this area is...
Concluded (the committee's words)
The lack of media reports relating to prosecutions and enforcement activity in this area is disappointing for two organisations held in high public regard. As part of their new communications strategy, HMRC and Border Force should publicise prosecutions and enforcement action more widely to deter potential offenders. It is important that the agencies work together to ensure that those who offend are named and shamed and that the public money, spent combating this crime, is shown to have been used effectively.
4We believe that the decision on standardised packaging should be driven by health reasons and...
Concluded (the committee's words)
We believe that the decision on standardised packaging should be driven by health reasons and the imperative need to reduce the numbers of young people who start smoking. We note the statement of Sir Cyril Chantler to the effect that he was not convinced that standardised packaging would bring about an increase in the illicit market; even if this were the case, we believe that the proper response would be a more vigorous effort on enforcement rather than any lessening in the Government’s drive towards introducing standardised packaging.
5An effective track and trace system could potentially mitigate many of the possible risks which...
Recommended (the committee's words)
An effective track and trace system could potentially mitigate many of the possible risks which have led the Government to adopt a more cautious approach to standardised packaging. Any increase in criminality should be avoided at all costs and considerations on standardised packaging must be taken on health and commercial grounds. Therefore, we recommend that any future legislation to introduce standardised packaging should include a requirement for appropriate security and tracking features, in accordance with the EU Tobacco Products Directive and best evidence.

Evidence

Oral evidence sessions 2