The 13th World Conference on Tobacco OR Health

Governments should implement comprehensive measures to prevent illicit tobacco trade, in order to maximize the benefits of a high tobacco tax strategy.

Tobacco sales to consumers by Internet or mail order should be banned. Canada and several US states have done this.

Other potential contraband prevention measures include: (1) prominent tax-paid markings, with covert/overt features; (2) a full tracking and tracing system (building on California/Brazil/Malaysia experience); (3) taxes at point of production/importation instead of retail; (4) export taxes; (5) tobacco-specific licences for farmers, manufacturers, importers, wholesalers, transporters, retailers, together with record-keeping and reporting requirements, and public disclosure; (6) strict liability for manufacturers/importers for products ending up in an illicit market; (7) substantial forfeitable bonds for tobacco manufacturers/importers; (8) prohibiting the supply of raw materials to unlicensed manufacturers; (9) banning duty-free sales/imports; (10) effective controls on tax-reduced sales to aboriginals, military, diplomats, etc.; (11) package markings to indicate tax-exempt/reduced status; (12) markings directly on cigarettes; (13) significant potential penalties, including fines of 3–10 times the tax evaded, prison terms, confiscation of proceeds of crime, and suspension of licence/ability to supply legal market; (14) meaningful search and seizure provisions; (15) meaningful enforcement resources; (16) interjurisdictional cooperation among enforcement officials; (17) prohibiting sale of empty cigarette cases.

The process for an FCTC Protocol on illicit trade has been initiated and has significant potential. A Protocol might include an internet sales ban.