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Verband der deutschen Rauchtabakindustrie e.V.

VdR

Der VdR ist ein Zusammenschluss von überwiegend familiengeführten und mittelständisch strukturierten Herstellern und EU-Distributeuren der Rohtabak-, Rauchtabak-, Zigaretten-, Kautabak- und Schnupftabakwirtschaft, der Importeure sowie der EU-Distributeure von Tabakwaren des deutschen Tabakanbaus sowie der sonstigen Unternehmen, die mit der Herstellung, der Verarbeitung, dem Vertrieb von mit dem Tabakgenuss zwingend verbundenen Produkten befasst sind.

Lobbying Activity

Meeting with Gerassimos Thomas (Director-General Taxation and Customs Union) and Philip Morris International Inc. and

18 May 2022 · Videoconference - Stakeholder event to gather views on the upcoming revision of the tobacco taxation directive

Response to Implementing act under Article 16(2) of the Tobacco Products Directive 2014/40/EU

2 Oct 2017

Although the draft of the implementation decision on the technical standards for the security feature does stipulate that "security features must include no less than five types of authentication elements", we believe it is lacking clear and uniform provisions on the security feature. Although the EU commission recognises a combination of open and hidden authentication elements in fighting counterfeit goods and infringement of intellectual property to be more effective, combining five of these is excessive and unrealistic, particularly with respect to products frequently packaged in very small sizes (e.g. nasal snuff, chewing tobacco). The cost per product unit is therefore substantially higher than for mass-produced products. The draft of the implementation decision furthermore identifies three categories of authentication elements (overt, semi-covert and covert). We would like to point out that international standards only recognise and classify two categories. In addition to the International Organization for Standardization (ISO), the EU Science Hub (Joint Research Centre) in its latest survey of techniques for fight against counterfeit goods and Intellectual Property Rights (IPR) only recognised and classified overt and covert authentication elements. The draft of the implementation decision therefore introduces an unnecessary level, as all elements the implementation decision refers to as "semi-covert" are internationally considered as "covert". Article 16 Para. 1 of the EU-TPD only provides the use of security features "from visible (i.e. overt) and invisible (i.e. covert) elements". From the perspective of small and medium-sized companies the introduction of 5 different authentication elements not affordable. With the draft of the implementation decision the Member States may lay down formal guidelines or requirements on the security of production and distribution procedures, such as those relating to the use of secure equipment and other components, audits, monitoring tools for production quantities and secure shipping. This is to prevent the illicit production, distribution, or theft of security features and their authentication elements. From the perspective of our member companies this will potentially result in a number of different solutions. Manufacturers of products for the EU market could potentially be required to procure separate components and conduct audits for each EU Member State supplied. With small and medium-sized companies in mind this must be quashed or is simply not feasible. The technical standard for the security feature should be defined to ensure harmonisation within the EU.
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Response to Implementing act under Article 15(11) of the Tobacco Products Directive 2014/40/EU

2 Oct 2017

The German Smoking Tobacco Association (VdR) represents manufacturers, importers, and exporting companies of fine cut tobaccos, pipe tobaccos, cigar-and cigarillo and of traditional chewing tobacco and nasal snuff. These companies are mainly small, medium-sized and family-owned. Most of them deal with niche products. We would generally like to stress that fine-cut tobacco, pipe tobacco, chewing tobacco and nasal snuff as well as cigars and cigarillos are not smuggled. Despite that fact our 18 predominantly medium-size structure, often family-owned member companies are always willing to actively and constructively cooperate in measures prohibiting illicit trade of tobacco products and supporting customs authorities in the fight against illicit trade. However, in our opinion the drafts of the legislative act presented do not prevent cigarette smuggling and considering the efforts are particularly unreasonable for our small and medium-sized companies. However, we still wonder to which extent monitoring the manufacturing and distribution methods of our legally manufactured and correctly taxed products will stem the sale of illegally produced, or at least not properly declared and taxed products. The additional costs legal manufacturers would incur due to the proposed legislative act will give illicit producers further price and competitive advantage. We believe there are serious problems implementing the proposed drafts. Both on a technical and temporal level. The existence of small and medium-sized companies producing and distributing small and micro-brands worldwide is threatened. The drafts of the EU commission ignore the long-standing practice, in both industry and retail. We assume the proposals will result in further consolidation in the industry. Whilst the European tobacco product directive aims at further harmonising regulations on the manufacturing, packaging, and sale of tobacco products within the EU, to ensure the proper function of the single European market, the draft presented puts the technical details in the hands of EU Member States. We believe this will result in many different, incompatible tracking and tracing systems and a high number of security features. We believe that the timely implementation of all provisions until May 2019 is impossible. For further information, the VdR has attached its detailed position.
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