UK: Tobacco Industry Voices Packaging Concerns In No-Deal Brexit Scenario

Source from:  Packaging News 03/06/2019

Analysts say if the UK leaves the EU without a deal on 29 March it will immediately lose copyright for a European Commission-owned library of images showing cancers and other diseases that are currently printed on packs.

The government is thought to be planning to license images from the Australian government if it needs to, but tobacco giants have warned the costs will run into the millions.

The Independent reported that lobbyists said the costs would be far more than the £5m the government assumes, especially when taking the risks of illicit trade and a forced requirement to incinerate millions of unsellable products.

The Tobacco Manufacturers’ Association is thought to have told the government it couldn’t possibly make packaging in the event of a no-deal Brexit, and appealed to the government to negotiate an urgent deal with the EU to extend the copyright.

Mike Ridgway, director of the Consumer Packaging Manufacturers Alliance (CPMA), told Packaging News that switching to the Australian versions will take time and a great deal of effort to implement with a no-deal Brexit arrangement and a change is not a short term operation.

“Gravure cylinder manufacturing  capacity and other printing re-pro alterations would put great pressure on the supply chain and taking into account that virtually no cigarette tobacco packaging manufacturing takes place in the UK now following factory printing factory closures in Bristol, Bradford and Portsmouth the time lines would also be stretched.

“Any supply constraints would present additional opportunities for the illicit trade not only by way of contraband but also the increasing evidence of counterfeit products filling the supply gap in the market. Ridgway concludes that a negotiated deal including copyright arrangements would be the better course of action for all concerned in saving tax revenue for the Exchequer and the extensive costs of destroying unsellable branded packs containing EU health warning images.”  Enditem