Recommendations
1. HMRC
and Border Force must continue to strengthen the lines of communication
between the two organisations, to ensure that relevant and up-to-date
information is passed between teams. In particular, it is vital
that referrals be made to HMRC in all cases of seizures where
it appears that there might be scope for sanctions to be imposed.
HMRC and Border Force should create a platform where effective
examples of joint-working with local police forces and partner
agencies such as Trading Standards across the UK can be accessed
for training and in order to share good practice. Without sharing
information, raising prosecution and arrest rates for tobacco
smuggling will be more difficult, if not impossible. (Paragraph
22)
2. It is
astonishing that no UK tobacco manufacturer has ever been fined
for over-supply of products to high-risk overseas markets, and
that only one statutory warning letter has been issued. The penalties
available are too weak and enforcement too rare. We find it farcical
that a respected enforcement agency such as HMRC has not imposed
tougher punishments on those over-supplying overseas markets.
We recommend that HMRC publish a clear set of criteria setting
out the circumstances in which it would normally impose a fine
and that an immediate review be taken against all historic and
ongoing cases against this criteria in order to ensure those who
have committed an offence do not go unpunished. (Paragraph 26)
3. 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. (Paragraph
31)
4. 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. (Paragraph 44)
5. 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. (Paragraph 53)
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