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Importers to pay for disposal of illegal tobacco

The recent amendment brings significant changes by placing the responsibility for disposal costs squarely on importers.

4 November 2024

In a regulatory update aimed at curbing the illegal tobacco trade, the Ministry of Health has mandated that importers bear the costs associated with the disposal of illegal tobacco products.

This new measure, formalized through an amendment to the Tobacco Packaging and Labeling Regulations, was published in the Government Gazette as part of the third amendment to the regulations under the Ministry’s jurisdiction.

The amendment broadens the scope of items classified as "disposables" under the regulation. According to the new rules, disposables now include:

  • 1-

    Equipment and Documents: Any object, machine, or document that may, knowingly or unknowingly, be used in the packaging, labeling, or otherwise facilitating the illegal trade of tobacco products.

  • 2-

    Non-Compliant Tobacco Products: Any tobacco products manufactured without adhering to the regulatory standards or found within the country in a manner contravening these standards, whether intentionally or accidentally.

Previously, the regulation required that these items be disposed of under the oversight of an authorized person, ensuring an environmentally friendly approach. However, it did not specify an institution to bear this responsibility.

The recent amendment brings significant changes by placing the responsibility for disposal costs squarely on importers. Now, any seized illegal tobacco products will be held under the custody of Customs, who will also ensure these items are disposed of responsibly. Key updates include:

  • Financial Responsibility: Importers will now be required to cover all expenses related to the environmentally safe disposal of illegal tobacco products. Customs will handle these costs initially but will recover them directly from the importers.

  • Custody and Running Costs: The amendment specifies that any running costs incurred while illegal items are in the custody of Customs will also be charged to the importers responsible for bringing them into the country.

Previously, enforcement of these regulations fell solely under the authority of the Health Protection Agency (HPA). The amendment now extends enforcement powers to include Customs and the police, allowing for a more comprehensive approach in combatting illegal tobacco products. Key enforcement provisions include:

  • Customs Authority: Customs will have the authority to impose fines on importers found violating the regulations. They are also empowered to recover any unpaid fines from violators, ensuring accountability.

  • HPA’s Role: The HPA remains responsible for subsequent enforcement steps beyond the import phase, ensuring that regulatory compliance continues throughout the product lifecycle.

  • Collaborative Enforcement: The Ministry of Economic Affairs and the police will have the authority to impose fines for violations of inspection rules, expanding the enforcement network to create a multi-layered approach.

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