1. WCO: Technology solutions: Secure marking, authentication and tracking & tracing to combat illicit trade D Hubert Director 3 rd July 2014

2. Formal Association, registered in Zurich Produce 75% of the world’s tobacco products (ex China) Raise over US$150 billion in taxes annually WHO WE ARE Digital Tax Verification Track & Trace Product Authentication Drive for the adoption of standards (and approved solutions) to fight illicit trade in excisable products.

3. SEPARATE PROBLEMS & SOLUTIONS Volume/Tax Verification CounterfeitSmuggling PROBLEM Track & Trace Authentication Tax Evasion SOLUTIONS Regulatory Response: EU Tobacco Products Directive FCTC Illicit Trade Protocol

4. REGULATORY REQUIREMENTS ManufactureExternal Distributors/ Wholesalers ConsumerRetail Outlet Pallet Stick Master Case On site warehouse Distribution Centre Carton Pack EU Cooperation Agreement TPD (Beyond 1 st Customer) FCTC Protocol TPD Security Feature (Overt/Covert Authentication)

5. .. TRACKING & TRACING T&T AIT Portal & Database Internal Distribution Production MastercasePalletOuter Warehouse1 Warehouse 2, etc. T&T regulatory Queries Pack 1st Customer 2nd Customer. External Distribution

6. PRODUCT AUTHENTICATION Increasing Accuracy/Reliability Overt: Mass authentication Covert: Law enforcement Forensic: Evidence in court Unique digital codes Secure/encrypted Non-proprietary scanners Material based Added to packaging Proprietary scanners Intrinsic to packaging: non-material based Uniqueness of every package Non-proprietary scanners + Optimum combination + (Confidential: Brand Owner & Government)

7. AN INTEGRATED APPROACH Volume and tax verification Product Authentication Manufacture Distribution MarketEnforcement Tracking & Tracing Based on GS1 & international technology standards

8. SINGLE POINT OF VERIFICATION Proven Solution: Based on international marking, data and technology standards Verification: any time, anywhere

9. DCTA: TRACK RECORD Operating in over 50 countries worldwide On-going projects to integrate with WCO’s IPM and Interpol Global Register 702 product lines 868 distribution points >5.3Bn cartons >106Mn master cases

10. Thank You