Cyprus Signs Agreement to Combat Illegal Cigarette Trade

Source from:  cyprus-mail.com 01/04/2008

THE European Commission, together with 26 participating EU member states, including Cyprus, and JTI (Japan Tobacco International) have signed a 15-year agreement providing for an efficient system to fight cigarette smuggling and counterfeiting. Through the agreement, JTI will work with the European Commission, its anti-fraud office OLAF and law enforcement authorities of the member states to help in the fight against contraband. The Agreement includes substantial payments by JTI, which total $400 million over 15 years. "I welcome the conclusion of the negotiations of this important agreement. It is to the advantage of the EU because it protects its financial interests," said Commission President Jose Manuel Barroso. "This Agreement represents a further major step forward in the continuing battle against contraband and counterfeit cigarettes," said Vice-president Siim Kallas, responsible for the fight against fraud. "Contraband and counterfeit products cheat everyone: governments, consumers and legitimate businesses. This new agreement will further enhance the ability of the European Commission and that of member states to combat illegal trading in cigarettes, which results in the loss of substantial tax and customs revenue each year. The Agreement sends a strong signal to the world that agreements between authorities and industry to fight illegal trade work and bring substantial benefits," he added. Enditem