Duty-free industry welcomes agreement on illicit trade protocol

http://www.dfnionline.com/article/Duty-free-industry-welcomes-agreement-on-illicit-trade-protocol-1862540.html

 

Duty-free industry welcomes agreement on illicit trade protocol

Andrew Pentol

12-Apr-2012, DFNIonline.com

 

The protocol is not believed to call for a ban on duty-free tobacco sales

Consensus has been reached by the parties to the Framework Convention on Tobacco Control (FCTC) to tackle the smuggling of tobacco through the adoption of a protocol on illicit trade. It is understood that the protocol does not call for a ban on duty-free tobacco sales, but does subject the channel to further scrutiny.

The fifth meeting of the Intergovernmental Negotiating Body took place in Geneva at the beginning of the month where the parties agreed a way forward to tackle the illicit trade of tobacco.

The decision marks the end of a negotiating process spanning five years. In 2008 a proposal was made during the negotiations to ban duty-free sales claiming they contributed to illicit trade. The duty-free industry associations immediately responded and since then have been promoting a strong illicit trade protocol while resisting claims that duty-free was part of the problem.

The protocol will now be submitted to the next meeting of the Conference of the Parties of the FCTC to be held in Seoul in November when it is expected to be adopted. This will then begin the process of the protocol being ratified by individual states. Once the protocol has been ratified by at least 40 countries, it willcome into effect and become binding on signatory parties.

A join statement from the European Travel Retail Council; International Association of Duty Free Stores; Asia Pacific Travel Retail Association; Asociación Sudamerica de Tiendas Libres; and Middle East Duty Free Association read: “We are especially pleased that spurious claims that the duty- free industry was itself involved in illicit trade have been rejected by parties to the FCTC. Illicit trade in tobacco products is a criminal activity that also hurts the duty- free industry. It is good news for the industry that this long running process has now come to a positive conclusion.”

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http://www.moodiereport.com/document.php?c_id=28&doc_id=30646&over18=1

 

Duty free associations welcome agreement on Illicit Trade Protocol

Published: 12/04/12

By Dermot Davitt

 

INTERNATIONAL. Consensus has been reached by the parties to the Framework Convention on Tobacco Control to tackle the smuggling of tobacco through the adoption of a Protocol on illicit trade. In positive news for the duty free business, it is understood that the Protocol does not call for a ban on duty free sales of tobacco.

The fifth meeting of the Intergovernmental Negotiating Body took place in Geneva at the beginning of April where the parties agreed a way forward to tackle the illicit trade in tobacco. 

The European Travel Retail Council (ETRC), the International Association of Duty Free Stores (IAADFS), the Asia Pacific Travel Retail Association (APTRA), the South American Duty Free Association (ASUTIL) and the Middle East Duty Free Association (MEDFA) welcomed the news. Although a duty free tobacco ban is not called for, the Protocol does still subject the duty free industry to scrutiny in the years to come. The duty free representative organisations said they were confident that the industry would stand up to any scrutiny. 

In a joint statement, they said: “We are especially pleased that spurious claims that the duty free industry was itself involved in illicit trade have been rejected by parties to the FCTC. Illicit trade in tobacco products is a criminal activity that also hurts the duty free industry. It is good news for the industry that this long running process has now come to a positive conclusion.”

The decision brings to a close a negotiating process that has spanned five years. In 2008 a proposal was made during the negotiations to ban duty free sales claiming they contributed to illicit trade. The duty free industry associations immediately moved to respond and since then have been promoting a strong illicit trade Protocol while resisting the claims that duty free was part of the problem. 

The Protocol will now be submitted to the next meeting of the Conference of the Parties of the Framework Convention on Tobacco Control to be held in Seoul in November when it is expected to be adopted. This will then begin the process of the Protocol being ratified by individual states. Once the Protocol has been ratified by at least 40 countries, it will go into effect and become binding on signatory parties.

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