INTERNATIONAL. In a strong signal of support for the travel retail sector, Airports Council International (ACI), the International Air Transport Association (IATA) and the Duty Free World Council have issued a joint statement addressing the role that duty free plays in combating illicit tobacco trade.
The move is a response to Article 13 of the WHO Protocol to Eliminate Illicit Trade of Tobacco Products. The Protocol requires Parties to take comprehensive measures to prevent and counter the involvement of the tobacco industry in illicit trade.
Article 13 states: “No later than five years following the entry into force of this Protocol, the Meeting of the Parties shall ensure at its next session that evidence-based research is conducted to ascertain the extent of illicit trade in tobacco products related to duty free sales of such products.”
In response to this, ACI, IATA, and DFWC have drafted the statement emphasising support for the Protocol, while also raising concerns about certain aspects that they said may have unintended consequences.
The joint statement calls for the following:
- Avoiding assumptions that link illicit trade with duty and tax free sales, highlighting the relevance of the duty and tax free retail channel to the aviation value chain.
- The importance of protecting legitimate duty free and travel retail sales from being adversely affected by measures to combat illicit trade.
- The need for an evidence-based approach to regulation, recognising the need for cooperation between all involved stakeholders.
The statement calls for a fair and objective study into the sector, once undertaken with transparency and constructive industry participation, an adequate peer review process, and the inclusion of experts familiar with duty and tax free.
“We believe an objective and fair study will conclude that our members are not a major contributor to illicit trade,” said the joint statement.
The call to action comes as the Third Session of the Meeting of the Parties (MOP3) to the Protocol to Eliminate Illicit Trade in Tobacco Products is set to take place on 27-30 November in Panama. ✈
