ACS calls for tougher sanctions to tackle illicit tobacco trade

By Liz Wells in Industry News 4th March 2021

The ACS has highlighted the “detrimental impact” that the illicit tobacco trade has on legitimate retailers and called for tougher sanctions to tackle the problem in its response to an HMRC consultation.

The consultation sought views on proposals for new sanctions linked to the UK’s tobacco track and trace system and extending HMRC’s traceability enforcement powers to trading standards officers.

ACS’ response also highlighted that enforcement action against local shops is not a remedy for all difficulties for the illicit tobacco market.

In the submission, ACS makes a number of key recommendations:

Trading standards powers should be extended to allow them to remove retailers that persistently trade in illicit tobacco products from the market by banning them from selling tobacco products.
HMRC should develop guidance for retailers to understand the process on how and why Economic Operator Identifier Code (EOID) may be deactivated.
HMRC should extend the use of Restricted Premise Orders, currently used for underage sales offences, to illicit tobacco offences.
HMRC should ensure there are clear avenues for businesses to appeal the deactivation of their EOID.

ACS chief executive, James Lowman, said: “The illicit market is extremely damaging to legitimate retailers so we welcome the introduction of tougher sanctions and are calling for greater enforcement action to eliminate illicit sellers from the market.

“But HMRC and trading standards must not solely focus on local shops to tackle the illicit tobacco problem, they must also address sources that are harder to identify and enforce against those trading illicit tobacco in communities, such as criminals selling on streets and from private dwellings.”