TobaccoReporter logo

Tag: Track and Trace

  • Pakistan Mandates Tobacco Track-and-Trace System

    Pakistan Mandates Tobacco Track-and-Trace System

    Photo: Taco Tuinstra

    Several tobacco companies are challenging Pakistan’s Federal Board of Revenue (FBR) in court, seeking relief from the country’s new track-and-trace system, according to reports in The International News and Dawn.

    Starting this month, all tobacco companies operating in Pakistan must implement the country’s track-and-trace system. Tobacco products may enter the domestic market only if they carry stamps and unique identification markers.

    To date, only three tobacco manufacturers—Pakistan Tobacco Co., Philip Morris International and Khyber Tobacco Co. (KTC)—have installed the track-and-trace system and made it operational. KTC Chief Technology Officer Shahid Sattar said the system would help the company enhance its presence in the Pakistani market and improve the quality of its products to international standards.

    The companies challenging the FBR want to continue selling old stock. The agency instructed them to discontinue such sales on June 30.

    The tobacco companies that are already operating the system maintain that it will succeed only if all players implement it. According to critics, the companies challenging the FBR instructions engage in illicit trade and fear the track-and-trace system will expose their illegal activities.

    In addition to the multinationals, there are at least 21 tobacco companies operating in Pakistan, including 18 in Khyber Pakhtunkhwa and three in the country’s federally and provincially administrated tribal areas.

    Out of the PKR134 billion ($645.47 million) in taxes collected from the tobacco industry in 2020, PKR131 was paid by two companies, which together held a 65 percent market share.

  • U.K. Launches New Track-and-Trace System

    U.K. Launches New Track-and-Trace System

    Photo: Uzfoto

    The United Kingdom has a new track-and-trace system for tobacco products, established and operated by Dentsu Tracking. Launched on July 1, the system provides the U.K. government with digital, data-driven traceability functionality across the entire tobacco supply chain. The system is part of the U.K.’s anti-illicit trade strategy, supporting Her Majesty’s Revenue & Customs’ (HMRC) efforts to fight illicit trade.

    “We are honored to work with HMRC and help the U.K. in the fight against illicit tobacco trade,” said Philippe Castella, managing director of Dentsu Tracking, in a statement. “Our digital system is tailored to the policy objectives of HMRC and designed to address the specific characteristics of the U.K. market. This ensures that the system provides HMRC with the highest level of visibility and government control over the entire U.K. tobacco supply chain.”

    The new track-and-trace system leverages the advantages of digital technology to enable the movement of legal tobacco products to be monitored (tracking) and allow U.K. authorities to detect and fight the different forms of illicit trade, thereby curbing the circulation of non-compliant products for which taxes have not been paid and that do not meet all legal requirements in terms of content and packaging. Reducing the circulation of non-compliant tobacco products enables the U.K. to increase national tax collection while protecting citizens and legitimate businesses.

    The new system was designed in line with all applicable U.K. and international laws, including full compliance with the FCTC Illicit Trade Protocol that requires parties to ensure the tracking and tracing of tobacco products along both manufacturing and key distribution points.

    By integrating sophisticated data analytics tools, Dentsu’s system transforms the collected supply chain data into meaningful information that helps U.K. authorities to identify potentially fraudulent events. The new U.K. system supplies HMRC with real-time detailed analyses, statistics and alerts, which some stakeholders have already described as “groundbreaking,” according to Dentsu.

    “At Dentsu Tracking, we strongly believe that the added value of tracking and tracing is only as strong as the level of supply chain insights that the system delivers to government bodies,” said Jan Hoffmann, director of government business. “Collecting data therefore is not enough. We generate powerful business intelligence that will help the U.K. authorities to carry out targeted controls and real-time investigations in the field.”

    All businesses engaged in the manufacture, importation, exportation, storage, distribution and sale of tobacco products into and through the U.K. supply chain must use the new track-and-trace system. Track-and-trace requirements have existed in the U.K. since May 2019 and currently apply to cigarettes and roll-your-own tobacco. All other tobacco products will have to comply with the requirements from May 20, 2024.

    Dentsu Tracking was appointed as provider for establishing and operating a new U.K. tobacco track-and-trace system in November 2021 by means of a public procurement process. Dentsu replaces the previous provider De La Rue.

  • New Leadership at Covectra

    New Leadership at Covectra

    Covectra, a track-and-trace company, has named Gary Miloscia as president and CEO. Steve Wood, co-founder and CEO since Covectra’s inception in 2008, will transition to serving on the board of directors and as a senior advisor to the management team.

    “As a leading provider of serialization, track-and-trace and authentication technologies, Covectra is poised to leverage its technology and strategic position to enhance value for its customers,” said Wood in a statement. “I have served over 14 years as CEO and have been proud and fortunate to work with an outstanding and dedicated group of employees. I am deeply grateful for their hard work and commitment and am confident Gary Miloscia will be an excellent leader for Covectra.”

    Since 2015, Miloscia has served as Covectra’s chief financial officer and chief marketing officer, responsible for its strategic business, financial planning, marketing and product development initiatives. Prior to Covectra, Miloscia held senior finance roles at Fidelity Investments, Health Dialog and American Express. Miloscia received a Bachelor of Science degree in finance from Rutgers University and a Master of Business Administration degree from Indiana University’s Kelley School of Business.

    “I am very excited for the opportunity to assume my new role at Covectra,” said Miloscia. “We have a strong business model and very talented management team that uniquely positions us in providing exceptional serialization and innovative brand protection solutions to our customers. I look forward to leading the company through its next chapter as we move forward to fully commercialize our new StellaGuard security label.”