Stronger powers to combat illicit tobacco come into force

New sanctions come into effect for those found selling illicit tobacco products

More than 27 million illicit cigarettes and 7,500kg of hand-rolling tobacco were seized under Operation CeCe in its first 2 years, HM Revenue and Customs (HMRC) and National Trading Standards have revealed.

This comes as new powers come into force from 20 July, which could see penalties of up to £10,000 for any businesses and individuals who sell illicit tobacco products. The sanctions will bolster the government’s efforts to tackle the illicit tobacco market and reduce tobacco duty fraud.

The new powers will also see Local Authority Trading Standards given the ability to refer cases to HMRC for further investigation. HMRC, where appropriate, will administer the penalties and ensure the appropriate sanction is applied and enforced.

Operation CeCe is a joint HMRC-National Trading Standards operation which has been working to seize illicit tobacco since January 2021.

Nis Bandara, HMRC’s Deputy Director for Excise and Environmental Taxes, said: “Trade in illicit tobacco costs the Exchequer more than £2 billion in lost tax revenue each year. It also damages legitimate businesses, undermines public health and facilitates the supply of tobacco to young people.

“These sanctions build on HMRC’s enforcement of illicit tobacco controls, will strengthen our response against those involved in street level distribution, and act as a deterrent to anyone thinking that they can make a quick and easy sale and undercut their competition.”

Kate Pike, Lead Officer for the Chartered Trading Standards Institute, said: “Trading Standards Officers across the country work with colleagues in Public Health to reduce the harm from smoking and with enforcement partners to disrupt criminality in our communities.

“We welcome this addition to our toolkit of measures to tackle illegal tobacco, ensuring that those who seek to profit from supplying these products face substantial penalties for doing so, and their ability to continue to trade is severely impacted.”

Lord Michael Bichard, Chair of National Trading Standards, said: “The illegal tobacco trade harms local communities and affects honest businesses.

“Through Operation CeCe, we have removed 27 million illegal cigarettes and 7,500kg of hand-rolling tobacco from the supply chain and we welcome these new measures to clamp down further on the illicit tobacco trade.”

HMRC will launch a new illicit tobacco strategy later in the year which will replace ‘From Leaf to Light’, which has been the guiding strategy for tackling the illicit tobacco market since 2015.

Further information on the new penalties

Council operation stops sales of illegal tobacco in Leith

Almost £26,000 worth of illegal tobacco has been taken off the shelves by the City of Edinburgh Council’s Trading Standards team and Police Scotland.

Operation CeCe is a UK wide operation targeting illicit tobacco, which is either duty evaded, counterfeit or both and the recent operations in the capital resulted in the seizure of almost £26,000 worth of stock. It included 22,600 cigarettes and 10Kg of hand rolling tobacco which in turn represented evaded duty of over £10,600 defrauded from public funds.

Acting upon intelligence received, Officers from the City of Edinburgh Council’s Trading Standards team, in partnership with officers from Police Scotland, attended a number of premises in the Leith Walk area of the city, along with tobacco detection dog Boo.

Transport and Environment Convener, Councillor Scott Arthur, said: “These recoveries are a fantastic result for our Trading Standards team who work hard to identify and tackle unsafe and illegal products. Stopping such products reaching consumers in Edinburgh and beyond is a testament to their proactive strategy and dedication.

“I am, of course, concerned that this market exists within Edinburgh. These products have not had the required duty paid on them, but also do not comply with the plain packaging, warning requirements, and where they are counterfeit, breach Trade Marks legislation. No tobacco product is safe, but the recovered goods may not comply with the requirements designed to ensure that cigarettes are self-extinguishing to prevent domestic fires.

“Illicit and Counterfeit Tobacco evades taxation and often ends up in the hands of young people, and for that reason tackling it is a key part of Edinburgh’s contribution to the Scottish Government aim to achieve a Smoke Free Generation by 2034.

“We are committed to tackling the supply of illicit tobacco, and will work with our partners in Police Scotland and HMRC wherever possible to disrupt its supply. Legitimate retail sale of tobacco is also disadvantaged where illicit supply routes exist, and we would encourage any legitimate business owners to come forward with any information.”