28th June 2018: Plain packaging for tobacco products came into force in the United Kingdom in May 2017. A year later, serious questions are being asked about the effectiveness of the policy. The UK Government’s own Smoking Toolkit Study found that smoking rates in England from December 2017 until March 2018 were higher than for the same 3-month period in the previous year, before plain packaging was introduced.

In addition, illegal, counterfeit plain packs are being found across the UK. According to a report published in June this year by the UK tax authority, HM Revenue and Customs (HMRC), the UK Government lost £2.5 billion in 2016-17 through the illicit market in cigarettes and hand-rolling tobacco. Of this, £1.9 billion was lost in tobacco duties and £0.5 billion in VAT. The illegal tobacco trade has lost the UK Government £43.5bn in tax revenue since 2000.

Since the implementation of plain packaging, Trading Standards and HMRC have recorded significant seizures of counterfeit packs. Traditionally the illegal trade has been centred on large industry centres with distribution via small retail outlets, car boot sales and other market type places of contact. This has now extended into rural areas in the Eastern counties of England, the South coast, Cumbria in the North West as well as the population centres of London, Birmingham, West Yorkshire and Scotland.

The UK packaging industry and the CPMA have consistently warned that the introduction of ‘simple specification’ plain packs would act as a door opener to the counterfeiter. As soon as complexity is eliminated from the packaging, the opportunity for copying increases.

Normal branded packaging contains enhancements to the design including hot foil stamping, vignettes, embossing, de-bossing and the use of matt and gloss varnish that combine to make life difficult for the counterfeiter. Simply put, branded, complex packaging combats the counterfeiter but plain packaging assists the counterfeiter.

Telling the difference between authentic and counterfeit plain packs is very difficult. Signs of tobacco packs being counterfeit could include the position and size of the health warnings, pack code number errors, bevelled edged features on non-bevelled edged packs, incomplete bar codes and tightness of the film overwrap.

The increasing penetration of counterfeit products into the UK is closely linked to organised criminal gangs whose operations extend into other areas of criminal activity including people smuggling, prostitution, the drug trade and even terrorism.

Informed sources, including border control authorities and Customs officials, indicate that counterfeit plain packs mainly originate from the former Eastern Bloc countries in Europe. In addition, domestic sources have been identified and are currently being investigated by the authorities.

Counterfeit tobacco products have been shown to have excessive tar content and to contain a range of foreign-bodies, including animal droppings and human excrement.