CD 42/2018 — Marking tobacco and tobacco products (tax stamps)

Factual summary

Sets the framework for marking tobacco and tobacco products with digital or physical Marks showing that Excise Tax has been paid. The producer affixes the Marks in the State after packaging or abroad before import, Marks are bought only through the Authority's Authorized Supplier after an approved request and fee, and movements of the marked goods are recorded in the FTA's track-and-trace System. It also sets secure-storage duties and requires unused Marks to be returned after 12 months, and leaves the start dates of the scheme to a decision of the FTA Chairman.

What it means in practice Professional insight

Who: tobacco importers, producers, distributors and retailers. What to check: that all Designated Excise Goods carry valid Marks, that movements are reported in the System, that Marks are stored securely, and that Marks not affixed within 12 months of receipt are returned to the FTA.

Key provisions

• Art. 1 Designated Excise Goods are tobacco and tobacco products which must be marked to indicate that Tax has been paid on them; Marks are a digital or physical stamp, seal or mark which the Authority may approve; the System is the electronic system approved by the Authority for the track and trace of the Marks.
• Art. 2 The Chairman issues a decision setting the date on which Marks are available for ordering by the importer or producer for each category of Designated Excise Goods, the date from which Designated Excise Goods without Marks may not be imported, and the date from which they may not be supplied in the State.
• Art. 3 The producer places the Marks in the manner and location specified by the Authority, either at the production facility in the State immediately after packaging, or at a location outside the State before Import; the Authority may vary the method and form of the Marks, including cases where no Mark is required.
• Art. 4 The importer or producer in the State requests Marks from the Authority and, once approved, buys them from the entity the Authority determines; only an Authorized Supplier may supply Marks and no other Person may trade, swap, sell or otherwise supply them; the importer may ask for Marks to be supplied directly to a producer, including one outside the State; the fee approved by the Authority is paid before the Marks are issued.
• Art. 5 The importer, the producer in the State and any Specified Person within the supply chain keep records of the movement of Designated Excise Goods into and within the State and record and report them in the System as the Authority specifies; recorded data may not be modified or deleted; Customs Departments verify the Marks when the goods enter the State.
• Art. 6 Marks must be stored securely before being affixed, under minimum security requirements the Authority may set; Marks must be returned to the Authority where the Person no longer intends to use them, where twelve (12) months have passed since receipt without their being affixed, or in other circumstances the Authority specifies.
• Art. 8 Implemented as of the date of issuance and published in the Official Gazette.