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HMRC internal manual

Tobacco: Anti-smuggling or the duty to avoid facilitating smuggling

Notified Seizures: Who to inform where contractual agreements exist between more than one legal entity in the manufacture and distribution of seized brands

 

 

The TST will need to check with LB whether any contractual arrangements exist in respect of the manufacture and distribution of seized brands, to ensure that the notification is sent to the appropriate legal entity. The following table illustrates the different types of manufacturing arrangements and indicates, for each scenario, to whom notification of seizure should be addressed:
 

 

Contractual arrangement Seizures should be notified to:
   
Shipments direct to a single national distributor  
  the manufacturer of the seized products
   
Shipments to a monopoly distributor  
  the manufacturer of the seized products
   
Shipments to a tobacco manufacturer’s subsidiary who is sole distributor for a country  
  the manufacturer of the seized products
   
Shipments to another tobacco manufacturer’s national distributor  
  the manufacturer of the seized products
   
Contract manufacture and shipment to another country for (a) another tobacco manufacturer or (b) a brand owner  
  the manufacturer who has arranged for the subcontracting of the production and distribution
   
Shipment from stock to retail and wholesale customers e.g. UK  
  the manufacturer of the seized products.
   
Distribution, either as the manufacturing company or through a specific fully owned or part-owned subsidiary e.g. Marlboro, Camels or Gitanes  
  the manufacturing company. Tobacco manufacturers will be held responsible for any sub-contracting arrangements or subsidiary companies.
   

 

 

Tobacco manufacturers will need to ensure that any subcontracted manufacturing and distribution arrangements are compliant with the obligations set out in the legislation, and if necessary, are addressed in the supply chain policy.