Tobacco Firm Offers Technology to Curb Smuggling

Source from:  Manila Standard Today 10/15/2010

PMFTC Inc., the country's largest cigarette maker, renewed its call to the Aquino administration to adopt its pack marking system to improve tax administration and clamp down on illicit tobacco trade. Chris Nelson, president of PMFTC, said the Philip Morris group had been using the technology worldwide in response to the growing illicit trade of tobacco products. "The illicit trade of cigarettes is a serious threat to our business," Nelson said in a statement, adding that the company had worked with governments of other countries to combat cigarette smuggling. "Codentify is a part of our global tracking and tracing system and has been in use for several years already by the European Union and its member states," he said. The local tobacco industry has endorsed Codentify as an alternative to the Sicpatrace system or others using paper-based tax stamp technology which the manufacturers find expensive and "out-dated." He said using the Codentify system would enable the government to check if manufacturers were paying the correct amount of taxes and identify whether cigarettes are genuine. The system can also be installed even in older equipment. "This is important because some of the smaller manufacturers have older equipment in use. With Codentify, there is no need for them to acquire new equipment to adjust to the technology. This translates into minimal cost outlays," Nelson said. He said the company would not be charging any fee for the technology and software for the Codentify system. Manufacturers will only shoulder the operational cost for the system. Nelson said the company allows an independent third party solution provider to customize its track and trace system according to the government's needs. "The government will have complete control over the system," said Nelson, brushing aside allegations of conflict of interest on the company's part. Enditem