TOBCSC5860 - Notified Seizures Other notifications of seizure

On occasions, HMRC may provide tobacco manufacturers with details of seizures or groups of seizures which do not meet the qualifying limits for a notified seizure. In particular this will be when the make-up, number and type of these seizures are indicators that supply chain controls have been ineffective and product is likely to have been purchased by organised criminals in manner that should have been reasonable to detect.

Responsibility for identifying such seizures lies with the FIBDIT Project Falcon Team.

Details of the seizures will be provided to LB who will issue a written notice to the tobacco manufacturer. This notification will state that the seizure detailed, offers tobacco manufacturers an opportunity to investigate potential weaknesses in their supply chain and to address whether they are discharging their statutory duty under the TPDA

The tobacco manufacturer will then be invited to inspect the seizure at QW to determine if it is genuine. If product is confirmed as genuine HMRC would expect there to be an evaluation of the controls in place and consider whether these can be developed to reduce the likelihood of similar seizures occurring in the future.

It should be possible for tobacco manufacturers to identify and report the full legitimate supply chain through to the end retailer as well as the information set out at paragraph 4.2 of Notice 477.

Unlike notifiable seizures the tobacco manufacturers are not legally obliged to inspect and investigate such seizures. However, failure to act on reasonable requests is something that HMRC will take into consideration when assessing a tobacco manufacturer’s overall compliance with their legal obligation detailed at paragraph 2.1 of Notice 477.

The details of any failure to respond to these seizures can be included in the evidence used in an initial notice and penalty notice. However, if the provenance of a seizure is to be taken into account by HMRC, tobacco manufacturers must be given the opportunity to inspect or receive samples in order to determine whether the product is genuine. Any failure to respond to non-notifiable seizures should be included within the ‘any other matters’ section of the relevant notice. The information used within the penalty notice, MUST be included in the original initial notice.

Tobacco manufacturers may discuss with HMRC any matter concerning the nature of individual seizures, and advise HMRC of any subsequent action that they intend to take to demonstrate that they are complying with their obligations. Furthermore, open dialogue regarding seizures as a whole will aid a better understanding of the smuggling risks attached to tobacco products.