What are the multiple benefits of tax stamps?

Are you aware of the dangers of fake cigarettes and illicit alcohol? Well, you may be lured by their cheap prices, but they may lead to numerous medical complications and even death. Moreover, they also hamper government revenue and tarnish the image of the manufacturers.

Governments across the world use tax stamps as a physical indicator to determine if the tax has been paid on the product or not? A bottle of alcohol or a cigarette pack usually has tax stamps affixed to them. In addition, tax stamps also serve the purpose of authentication and determine if a product is genuine or fake. Tax stamps also leverage the aesthetic appeal of the product and make it highly saleable.

Market research suggests that tax stamps currently share a significant proportion in the security print market. Billions of tax stamps are printed annually for cigarettes and alcohol alone which makes them number one in terms of volume. In India, tax stamps are generally used in the tobacco and liquor industries where they are affixed on cigarette packs, cartons, and liquor bottles.

Tax stamps have been put to multiple uses – although unintentionally. Besides, being attached to the product for taxation, tax stamps are an evident proof that a product is authentic. It also serves the purpose of an anti-tampering seal, as it is placed over the opening of tobacco products or alcohol bottles. Moreover, tax stamps are printed with serialized code which is used for supply chain track and trace and production monitoring.

Since liquor and tobacco products are highly susceptible to counterfeiting, therefore, it is essential that tax stamps with high-security features should be used to avoid the sale of fake products and restrict any further losses.

Holostik offers tax stamps that incorporate different types of anti-counterfeiting technologies that encompass digital product authentication (QR codes & barcodes), holographic and non-holographic features. The company offers customized tax stamps as per the need of the consumer which helps in increasing tax revenues, curbing duplication, reducing the sale of hooch and deaths due to it and easy identification of genuine products. Some of the high-security features which Holostik offers in its tax stamps are as follows: human-readable variable data, machine-readable encrypted code, microprint, copy void feature, thermochromic inks, colour changing image, UV (ultra-violet) feature, user-defined screen, UV papers, security cuts, raster image, etc.

Used prominently on substrates like cardboard, paper, PVC, glass, plastic, and metal Holostik offers multiple variants of the tax stamps- as per client’s requirement. It includes holographic tax stamps, holographic tax stamps with taggant/talking pen, paper tax stamps and paper tax stamps with a holographic transfer.

To get the best and customised anti-duplication products and solutions call us on +91–785-785-7000 or mail us at connect@holostik.com.

Large stock of illicit cigarettes and cash seized by authorities in Bristol,UK

Of late, (HMRC) Her Majesty’s Revenue Customs has confiscated approximately 500000 suspected illicit cigarettes and around 700kg of hand-rolled tobacco in Bristol. Officers from HMRC searched four residential addresses and two business premises on June 12 as a part of an investigation into cigarette and tobacco smuggling.

A spokesperson from HMRC said that £80,000 in cash was seized by the authorities. Five men and woman were also arrested on suspicion of falsely evading excise duty., A woman was also arrested on suspicion of money laundering and another man arrested on suspicion of illegally evading excise duty.

Illicit white cigarettes have no legal market in the UK. These cigarettes are mass manufactured in factories in Russia and the East and are imported illegally to the UK. No duty is paid on these cigarettes and health warnings are also missing.

On the other hand, counterfeit cigarettes are illegally manufactured and sold by a party other than the original trademark or copyright holder. Counterfeit hand-rolling tobacco is like cigarettes which are illegally manufactured and sold by a party other than the original trademark or copyright owner.

Source: bristolpost.co.uk

Why are counterfeit cigarettes toxic in nature?

It’s a well-known fact that cigarettes are harmful to you and can cause life-threatening disease like Cancer in the long run. But, have you ever imagined what counterfeit cigarettes can do to you? When it comes to cigarette addiction fake ones should be avoided at all costs. Fake cigarettes are usually imported from foreign countries like China and they are able to make their way into different countries due to weak customs laws and poor regulation of the market.

There is an enormous market of counterfeit cigarettes in India. This is due to the ever-growing taxes on tobacco and tobacco-based products. There is an ongoing trend of the rise in consumption of counterfeit cigarettes among the masses which is harmful to their health. According to a research group, a fake cigarette contains adulterants which are quite toxic for the lungs.

The research group set out to study these cigarettes with one goal in mind—provide more accurate data for assessing their impact on one’s health. “Counterfeit cigarettes constitute a significant crime and public health problem,” Yi He, associate professor of chemistry at John Jay College told R&D Magazine after her session presentation at Pittcon in Atlanta last month titled Elemental Profile of Tobacco Used in Counterfeit Cigarettes.

The researchers at John Jay College of Criminal Justice and CUNY, including Agricultural Research Service (USDA), studied the elemental profile in counterfeit cigarettes that was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives after being seized by the law enforcement agency. The 13 elements they researched in the cigarettes included: As, Ca, Cd, Co, Cu, Fe, K, Mg, Mn, Ni, P, Pb and Zn.

According to academic research presented at a session, a tobacco plant is particularly efficient in accumulating cadmium from the soil and translocating most of the metal to the leaves. Cadmium is the prime focus for this particular investigation of potential toxic effects. The group analysed 46 counterfeit samples, including 22 Newport, six Marlboro Red and 18 Marlboro Light brands, as well as six genuine cigarettes. The research team’s study concluded that there were much higher concentrations of toxic heavy metals consistently found in counterfeit cigarettes that were seized in the U.S. compared to genuine brands.

Source: rdmag.com

The growing menace of counterfeit cigarettes in India

Counterfeiting is growing in India by leaps and bounds and is worth over Rs 40,000 crores according to a report by ASPA (Authentication Solution Providers Association). The counterfeiting industry aims to sell low-quality duplicate copies of original items with the purpose of making profits. Apart from the loss of money, another big threat of counterfeiting is its negative impact on health. While financial losses can be recovered with time the pitfalls of health are life-threatening. Many counterfeit products are being sold in the market which leads to health repercussions in both short and long-term.

One such product is CIGARETTE that has an industry infested with counterfeit products substantially. According to a joint report by KPMG and FICCI the data of seizures from the Directorate of Revenue Intelligence show that the market of illicit trade cigarettes in India rose by Rs 5,775 crore between 2010 and 2015, making it worth Rs 25,000 crore. The report also highlights that the sale of counterfeit cigarettes has upscaled whilst the sale of legal cigarettes has plummeted as the number of smokers keep on increasing. Another reason cited for this trend is the affordability of fake cigarettes compared to the real ones. As the demand for fake cigarettes is increasing it can have serious implications on the health of its consumers. Counterfeit cigarettes contain toxic chemicals like arsenic, human feces, molds, dead flies and insect eggs which are more fatal than the effects of tobacco.

A study by ICC Counterfeit Intelligence Bureau (CIB) has stated disturbing facts about the contents of duplicate cigarettes. The report states, “Studies have shown that when compared to legal cigarettes, fake smokes can contain five times the level of cadmium, six times as much lead, 160 percent more tar and 133 percent more carbon monoxide.” From this, You can easily imagine the extent of damage on health due to a fake cigarette.

Industry experts have suggested to stay away from the lure of fake cigarettes and have given tips to identify them. The important signs of fake cigarette include faulty packaging, spelling mistakes on packaging, incorrect logos or typefaces, foreign health warnings and absence of picture health warnings. You can also check the price of carton or the packaging which does not coincide with the original. Fake cigarettes tend to have cheaper prices. Another way to spot fake cigarettes is by smelling them as you can’t jeopardize your health by smoking them. Even a single piece can be detrimental for your health. You can read one of our earlier blogs to deeply understand the difference between a fake and real cigarette.

Despite the number of measures to spot fake products counterfeiters have come up with ways to replicate every single peculiarity. Today, it has become difficult to segregate fake product from real ones, therefore there has been a rise in the use of anti-counterfeiting technology to keep its genuineness intact.

Holostik India Limited which is one of the pioneers in anti-counterfeiting solutions and caters to different industries. Holostik provides different kinds of anti-duplication products for the tobacco industry. With anti-counterfeiting solutions in place, there can be a massive cutdown in the sale of fake cigarettes in the market. Apart from saving cigarette manufacturers from losses, anti-duplication solutions will save consumers from the harmful effects of fake cigarettes.

Trade

Global Terrorism Relying on Illicit Trade of Cigarettes

FICCI recently launched its report at MASCRADE 2017, titled Illicit Trade: Fuelling Terror Financing and Organised Crime. According to this report, many terrorist organisations, including Al Qaida, Hezbollah, Lashkar-e-Tayiba, and the Irish Republican Army, depend on illicit trade for financing up to 20% of their terror operations. Continue reading “Global Terrorism Relying on Illicit Trade of Cigarettes”