Philip Morris Luxembourg (PML) and the Luxembourg government have signed a cooperation agreement to exchange information with the goal of addressing the trafficking and illegal trade of tobacco products.
The signing authority at the ceremony, held last Thursday, was the Ministry of Finance represented by Customs and Excise.
The trafficking and illegal sale of tobacco products was highlighted as a phenomenon which can harm both signing actors, due to the fact that illegal trade deprives the government of substantial tax and customs revenues, whilst counterfeiting violates the intellectual property rights of PML. The retail sector may also be affected, as jobs have disappeared as activity turned towards criminal organisations that sell poor quality cigarettes, which have escaped government controls and quality assurance procedures, on the street, which in turn means consumers lose out as well.
The cooperation agreement will involve identifying potential illegal activities and discouraging illicit practices. Whilst the authorities will inform PML of control and seizure operations in the country, whilst PML will provide access to its database and "Track and Trace" system which allows for the precise monitoring of the distribution and sales of its products. PML will also support the training of officials, including the staff of the Customs and Excise Administration.
"This agreement demonstrates that the authorities and the private sector must join together in the fight against illicit trade and counterfeiting," commented Pierrot Reding, head of the Excise division of Customs and Excise. "In addition, counterfeit tobacco products do not meet any health standard! We must therefore eliminate their appearance."
"We are taking important proactive measures in order to help eradicate illicit trade of both genuine and counterfeit cigarettes," Robert Wassenaar, manager of Philip Morris Luxembourg, added. "We however can not do it alone. The commitment of states and effective enforcement are essential to success in the fight against smuggling. We will continue to work with governments and organisations that share outr commitment to this fight. In this context, we fully support the ratification of the Amti-Smuggling Protocol of the World Health Organisation."
Philip Morris International has already signed several such agreements, whilst for Customs and Excise this collaboration is its foruth in the fight against smuggling and counterfeiting.
Photo by Administration des Douanes et Accises (L-R): Pierrot Reding, Head of the Excise Division of Customs and Excise; Alain Bellot, Director of Customs and Excise; Robert Wassenaar, Manager of Philipe Morris Luxembourg
