2023 Review

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Until the early 2000s, all tax administration and tax services including excise stamps performed entirely on paper-based forms in Georgia. However, since then, significant results have been achieved in Georgia to the extent that the Revenue Service is now one of the most advanced and rapidly developing tax administration in the world. Now, excise stamps are two type: paper-based and electronically (direct marking) and all of them are traceability. Georgia Revenue Service strives every day to make the use of excise stamps more efficient for tax purposes. In this presentation, the Georgia Revenue Service will present the information about Tax Stamp and Traceability System in Georgia.

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The objective of the WHO FCTC Protocol to Eliminate Illicit Trade in Tobacco Products (Protocol) is the elimination of all forms of illicit trade in tobacco products. The Protocol aims to secure the supply chain of tobacco products through a series of government measures. It requires the establishment of a global tracking and tracing regime by September 2023. There were 67 parties to the Protocol by 31 May 2023. 28 Parties to the Protocol are high income, 15 are upper-middle income,14 are lower-middle income and 10 are low income. We estimate that there are thirty-seven existing track and trace systems among Parties: 20 Parties have a system based on the EU regulations, 10 on tax stamp regimes and 7 on other characteristics. Low and middle-income countries struggle with the implementation of the Protocol obligations and the establishment of the tracking and tracing provisions. A global tracking and tracing regime, compromising national and/or regional tracking and tracing systems, might help to secure the supply chain and assist in the investigation of illicit tobacco trade, if enough Parties have a tracking and tracing system, covering all the obligations of the Protocol, based on robust data, without tobacco industry interference, access to the unique identifiers outside the jurisdiction and mutual recognizable data.

A review of the role excise duties play in the broader context and what it means for your business; what Ministers of Finance and Commissioners tend to focus on; current focus areas in respect of compliance, trade facilitation, tax administration strategy, and digitalisation; and developments in respect of public procurement.

The basic premise of tax stamps, as originally intended, not only holds true today but the business case for using tax stamps has actually increased considerably as revenue authorities worldwide have secured valuable excise revenue from the importation and manufacturing of excisable products. The stamps act both as a record of payment and a barrier to the distribution of illicit products in any impermissible form.

Ghana Revenue Authority (GRA) therefore embraced its tax stamp programme, from its birth in 2010, and has gone through an iteration of processes amidst some significant investments, successfully sustaining the continued use of tax stamps in 2018 to leverage on their benefits.

This paper adopts an exploratory data analysis approach to weigh the benefits that have been reaped, thus far, whilst proffering measures that could streamline any jagged edges. It analyses excise tax revenue performance prior to and post-implementation, scope and coverage, and the legal undertakings between GRA and tax stamp contractors, whilst assessing compliance by manufacturers, importers, and retailers to inform future policy.

Between 2018-2021, it was estimated that illicit cigarettes accounted for 25% of the total market within the Republic of Lebanon, costing the government between $200-$250 million in annual lost revenues.

Instability in the region, a prolonged economic crisis and the Covid pandemic combined to create the perfect storm for this illicit trade.

To combat this challenge, OpSec Security was contracted to plan, develop and implement a complete authentication and traceability solution for cigarette products produced in and for the Republic of Lebanon.

This white paper presentation details the specific regional and technical challenges faced during this process, and the key solutions developed to protect these vital government revenues.

Areas covered include new optical and digital security technologies, online industry protection and citizen authentication. The paper further highlights key regional customisations and considerations to ensure ongoing success of the programme.

Panama is small country, but with a strategic location, where the Pacific and Atlantic oceans meet on either side of our borders. Our economy is based mainly on the services we provide in the canal zone, and the various alternative services we can provide in terms of free trade zones, free zones, port areas and fuel trade-zones.

Additionally, Panama maintains a robust financial center and has become in this way a business hub for the Americas.

All these advantages are very good, but at the same time these conditions leave us vulnerable to a series of crimes committed in the region. Samples of illicit trade are trafficking of psychotropic substances and merchandise such as liquor, cigarettes and gasoline.

For this reason, over the years, Panama has established laws and mechanisms to counteract these attacks, establishing new penalties, administrative sanctions, modifying procedures, etc. It has also created multidisciplinary teams that can help in the fight against these activities and trained its customs and tax officials in the different regions of the country where there is a threat of entry of illicit merchandise, to reduce incidences of illicit trade. Currently, Panama expects our next tender to address traceability of many of these products using modern traceability technology

There are many examples of digital fiscal marking and production monitoring programmes that have generated significant benefits for the impacted countries or regions. Even programmes which include a minimum of best practices and low levels of enforcement deliver benefits that justify the cost of the programme. Join us in this presentation as we share our thoughts regarding why, despite these considerations, many programmes still fail to launch or deliver the expected results.

Beer is one of the most common product categories subject to excise duties, along with non-alcoholic beverages, such as soft drinks and bottled water. However, using paper-based tax stamps for these products poses several operational challenges.

A track and trace solution that prints unique codes directly on the bottle or can, using security inks, offers significant advantages, while keeping the ability to protect the system from fake and duplicated codes.

We will describe a solution that has been implemented by revenue authorities in over a dozen countries, and the benefits achieved. We will also present some recent innovations, which provide additional benefits, such as interoperability and consumer verification.

Governments are extending tax collection programmes beyond traditional luxury products such as tobacco, wine and spirits to finance post-pandemic economic recovery and health care programmes. An example of these new markets are soft drinks, beer and water, to name a few.

While physical tax stamp technology has been used to address traditional market requirements, using track and trace systems, labels and enhanced security features, their application to new markets may become challenging due to several reasons.

First, products such as beer and soft drinks are less expensive than luxury goods such as tobacco and spirits. This makes manufacturers more price sensitive and requires an optimised project cost.

Second, production line speeds are faster and labelling products may reduce line performance.

Last but not least, product shapes and colours are variables and adding labels to the same production line is challenging. It may also raise some concerns related to the product brand.

Traceability has been used in various industries over the past decades to track and trace products across the supply chain. We discuss how this technology can help implement successful digital tax stamp programmes and how it can open the door to other applications such as returnable bottles management and inventory tracking, to name a few. We also provide a few recommendations about using the direct-to-print approach on beverage products.

In traditional secure design/printing, all prints are identical and authentication is based on differences from the original print. In most cases, security design is connected to some key security elements such as guilloche, microtext, and latent images. These elements protect the product only if they are designed and printed based on strict rules. These rules are not flexible, they are limited by the existing technologies of the commercial market.

In the case of digital security printing, all prints are different and authentication is based on coded personal information that has to be decoded and identified. It is also important to note that security features should not be borrowed from traditional security printing but should be developed specifically for digital printing.

One of the biggest advantages of digital printing is that all the documents can be personalised, not only with a simple serial number but in a very complex way. We can personalise the design as well as any of the printed elements.

This paper presents real-life cases of how different combinations of design and personalisation can solve the challenges of authenticating and identifying secure documents.

The presentation will cover an update on status of the track and trace aspects of the WHO’s Framework Convention on Tobacco Control (FCTC) Protocol on the Illicit Trade in Tobacco Products, and the upcoming 3rd Meeting of the Protocol Parties (MOP3) due to take place in Panama in November this year. It will also provide insights from the government perspective re meeting the national obligations under the Protocol, as well as companies that are required to implement the provisions.

The journey to legalisation of recreational cannabis in Canada tells a story that the rest of the world can use to plot its own course. From public favour to political will, through the rigours of legislation and on to the practicalities of assembling and launching a brand new excise regime in a brand new market… it’s a remarkable tale.

The Canadian Bank Note Company was both quietly in the background and at times front and centre for most of these efforts. The lessons and experiences our organisation gained as being part of this success story are worth sharing. In our presentation, we will touch on themes and practical lessons which industry and government delegates alike can learn from as the rest of the world ponders the question: how to manage legalisation?

Tim McIntyre is Chairman of the International Tax Stamp Association (ITSA) and head of the Excise Control Division at Canadian Bank Note Company. The excise division is responsible for delivering Canada’s tax stamp programme to tobacco, cannabis and vape licensees, as well as other international excise programmes.

Previously, Tim was in the logistics industry, where he helped FedEx and Purolator (Canada’s top domestic courier company) to build and strengthen their government service verticals.

As Chair of ITSA, Tim is committed to reinforcing the association’s position as an impartial authority on tax stamp solutions around the globe, by ensuring ITSA’s ongoing active engagement with revenue authorities and governments.

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De La Rue implemented the first Digital Tax Stamp solution with the Federal Tax Authority in the United Arab Emirates in 2019, with similar schemes being implemented in Saudi Arabia, Oman, Qatar and Bahrain in the following years.

These solutions use a combination of physical tax stamps and directly printed pack codes to enable compliance with the WHO FCTC, Protocol to Eliminate Illicit Trade in Tobacco Products.

The presentation will share learnings from the implementation and operation of these schemes, with particular emphasis given to providing helpful advice for Tax and Customs Authorities considering how best to introduce a scheme for their country.

Switzerland-based Thymaris provides integrated authentication technologies (software and machines) based on the principle of integrating serialisation and authentication into every barcode. For example, its AMACENA® Secure product authentication technology for high-volume security printing combines a full-stack serialisation suite with anti-counterfeiting technologies integrated as an additional layer into the barcode.

This technology is currently being used for a large-scale tax stamp programme, for an annual production of multiple billions of stamps, all of which carry an AMACENA Secure barcode.

The programme comprises a dashboard for data queries, as well as for analysing the different counterfeit codes found in the market on a daily basis.

This paper describes the different types and quality of counterfeits found, the equipment used by counterfeiters for high-end serial code printing, and the different levels of difficulty in detecting counterfeits. It also addresses the question of how many counterfeits should be identified in order to ensure successful outcomes.

Introduction of Optical Q-ID®

Through a mix of software and hardware solutions, the security printing industry has witnessed stellar technological advancements in its ability to successfully secure global documents, currency, identity and brands across an array of vast and differentiated markets. Central to this success has been a commitment by the industry to drive sustained, collaborative innovation through research and development using next-generation materials, technologies and their effective integration. This commitment has allowed the security print industry to work collaboratively to push technological boundaries, and in doing so has successfully protected central banks, governments, issuers, brand owners and their end users across the globe.

Quantum technologies have been lauded as an enabler of such next-generation solution thinking. As such, we present Optical Q-ID® from Quantum Base Limited as a simple, cost-effective solution to drive unbreakable document security through our simple integration of quantum technologies into existing modern print manufacturing processes.

At the atomic scale, everything is unique. We have created the patented hardware ability to print and manufacture, at scale, Q-ID® tags which have embedded quantum properties, creating natural nanoscale, macroscopic imperfections – in effect, endless unique quantum identities. We celebrate these natural imperfections, creating patented software capabilities to allow a smartphone, with no additional hardware, to read these unique “quantum signatures” from each tag in less than a second – making cloning and simulation impossible. In essence, Q-ID® is the world’s first quantum security technology, empowering all in global markets to be the custodians of their document and brand security, armed with nothing more than a smartphone.

Leonhard KURZ Stiftung & Co. KG newly developed a tax label substrate to be deployed either for wet-glue or self-adhesive application.
By using the Diffractive Tax Stamp Paper, the production step of hologram application could be skipped; significantly reducing production times at the printing facilities.
In the future companies without foil application equipment could easier approach the tax stamp markets, too.
Certainly, our Diffractive Tax Stamp Paper can be serialised and personalised to suit the client’s needs.
This new look with a smooth metallic appearance is clearly visible to the public and definitely an eye catcher, serving as an integrated additional security feature.

Tax and Authentication stamps are found on an ever-increasing variety of products and have shrunk in size significantly over the past years. At the same time, the number of security features prescribed by legislatures have increased which leads to the need for multifunctional security features i.e. features that create security at the various level of authentication. This presentation will give an overview of the leading security features available today.

A chain is only as strong as its weakest link. So why does quality control not get the love it deserves in the world of revenue tax stamps? In this field, precision and quality are of the utmost importance, so we argue that putting QC front and center is vital.

Because overt serial numbers and barcodes on revenue tax stamps need to be human as well as machine readable. A good contrast between the background print and the barcode or serial number is of great importance.

The printable area, or ‘real estate’, on tax stamps is very limited. This provides design challenges especially if multiple different security features are to be applied as well. Adding covert features as an invisible layer can provide the additional area required to integrate multiple features on a small product. Covert serial numbers and barcodes can provide additional security.

Is quality control of covert features even more important than the inspection of visible features? State-of-the-art quality control solutions don’t only assure that all print features are present, in the correct position, and without flaws. They also create special reports and data files. This data can be used to improve production, reduce waste, avoid future issues, and track the stamps through the finishing and packing process. The data files can become the basis of a unique and reliable track and trace solution.

A user-centric cybersecurity approach for machine-readable codes on tax stamps, documents, and products.

The introduction of health passes during the COVID-19 pandemic has popularised the use of 2D barcodes. The upcoming implementation of GS1 Digital Link will further accelerate this trend. In Europe, the EU Eco-design for Sustainable Products Regulation will progressively implement the Digital Product Passport, which will encourage smartphone users to interpret 2D codes on products and components across various sectors.

Today, simply scanning a 2D code can lead to significant damage due to substitution fraud. Numerous testimonies have highlighted the potential risks, ranging from identity theft to compromised bank account access.
In this context, citizen cybersecurity must be prioritised as part of a due diligence approach enforced by authorities. It is essential to develop solutions that serve as a safety net, ensuring citizens’ security even when scanning a seemingly legitimate 2D code – since that code could actually be carrying a malicious link.
Three key goals for a digital tax stamp scheme will be depicted:
1. Centralised data and controlled excises volumes for government authorities
2. Simple and seamless integration for manufacturers
3. High protection and information accessibility for inspectors and citizens.

Excise tax stamps are valuable documents because they are used to regulate the production, distribution and consumption of a certain group of goods like alcohol and cigarettes and confirm payment of excise duty. Therefore, not only the products, but also the stamps themselves have value and are the subject of counterfeiting and falsification. However, the tax stamp industry faces many challenges, such as the increasing sophistication and diversity of counterfeiters, and the emergence of new technologies. Therefore, there is a need for innovative and effective solutions to enhance the security, efficiency, and revenue collection of excise taxation. The use of holograms for tax stamps is an innovative and effective solution to enhance the security, efficiency, and revenue collection of excise taxation. Tax stamps with holographic protection have been successfully used for several decades and the market for tax stamps is estimated at more than $30 billion.

ISO 22382:2018, the international standard for tax stamps, is now due for its 5-yearly ISO review. As project leader for the standard, Ian Lancaster has been asking revenue agencies and suppliers for their view on whether and how the standard should be revised. He will present the key points coming out of this consultation and explain the ISO review process.

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