WCO: Technology solutions: Secure marking, authentication and tracking & tracing to combat illicit trade

D HubertDirector3rd July 2014

• Formal Association, registered in Zurich

• Produce 75% of the world’s tobacco products (ex China)

• Raise over US$150 billion in taxes annually

WHO WE ARE

Digital Tax Verification

Track & Trace

Product Authentication

Drive for the adoption of standards (and approved

solutions) to fight illicit trade in excisable products.

SEPARATE PROBLEMS & SOLUTIONS

Volume/Tax Verification

CounterfeitSmuggling

PROBLEM

Track & Trace Authentication

Tax Evasion

SOLUTIONS

Regulatory Response: • EU Tobacco Products Directive• FCTC Illicit Trade Protocol

REGULATORY REQUIREMENTS

Manufacture External Distributors/ Wholesalers

ConsumerRetailOutlet

Pallet

Stick

Master Case

On site warehouse

Distribution Centre

Carton

Pack

EU CooperationAgreement

TPD(Beyond

1st Customer)

FCTC Protocol

TPDSecurity Feature

(Overt/CovertAuthentication)

. .

TRACKING & TRACING

T&T AIT Portal & Database

Internal Distribution Production

Mastercase PalletOuter Warehouse1 Warehouse 2,etc.

T&T regulatory Queries

Pack

1st Customer

2nd Customer

.

External Distribution

PRODUCT AUTHENTICATIONIn

crea

sing

Acc

urac

y/R

elia

bilit

y

Overt: Mass authentication

Covert: Law enforcement

Forensic: Evidence in court

Unique digital codesSecure/encryptedNon-proprietary scanners

Material basedAdded to packagingProprietary scanners

Intrinsic to packaging: non-material basedUniqueness of every packageNon-proprietary scanners

+Optimum combination

+(Confidential: Brand Owner & Government)

AN INTEGRATED APPROACH

Volume and tax verification

Product Authentication

Manufacture Distribution Market Enforcement

Tracking & Tracing

Based on GS1 & international technology standards

SINGLE POINT OF VERIFICATION

Proven Solution: Based on international marking, data and technology standards

Verification: any time, anywhere

DCTA: TRACK RECORD

Operating in over 50 countries worldwide

On-going projects to integrate with WCO’s IPM and Interpol Global Register

702 product lines

868 distribution points

>5.3Bn cartons

>106Mn master cases

Thank You