Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether the Government has made an assessment of the potential effect of an increase in counterfeit goods on the potential suspension of the tobacco track and trace system at the end of the transition period.

The UK has now left the EU and entered a transition period which ends on 31 December 2020. During the transition period there will be no change to the track and trace system. At the end of the transition period, HM Revenue & Customs (HMRC) will need to make some changes to the current system for it to continue to operate. The changes will be kept to the minimum necessary to enable the UK to have full regulatory control.

In addition to the track and trace system, cigarettes and hand rolling tobacco incorporate a UK security label that contains sophisticated anti-counterfeit security technology. There will therefore be no increase in the risk of counterfeit cigarettes and hand rolling tobacco entering the UK as a result of any changes to the track and trace system at the end of the transition period.

The UK has a strong record of tackling the illicit trade in tobacco products, and the track and trace system is a key component of HMRC’s strategy. The strategy continues to evolve, reflecting constant changes in the nature of the fraud, and will continue to do so at the end of the transition period.

At the end of the sell-through period, all cigarettes and hand rolling tobacco in the UK supply chain must be marked with a UK ID code and security label. Any remaining unmarked stock that can no longer be sold in the UK can be returned in accordance with the existing procedures retailers have in place with their suppliers.