Report of the panel of experts on the Protocol to eliminate illicit trade in tobacco products

Conference of the Parties to the WHO Framework Convention on Tobacco Control Eighth session Geneva, Switzerland, 1−6 October 2018 Provisional agenda item 6.1 FCTC/COP/8/6 25 July 2018 66 Report of the Panel of Experts on the Protocol to Eliminate Illicit Trade in Tobacco Products Purpose of the document This report summarizes the work conducted by the Panel of Experts on the Protocol to Eliminate Illicit Trade in Tobacco Products between the Seventh and Eighth sessions of the Conference of the Parties (COP) as mandated by the Seventh session (COP7). Action by the Conference of the Parties The COP is invited to note this report. Contribute to the Sustainable Development Goals (SDGs), if applicable: Target(s) 3.a and SDG 3. Link to the workplan and budget item: N/A. Additional financial implications if not included in the workplan and budget: None. Author team(s): The Panel of Experts. Related document(s): FCTC/COP/8/5. FCTC/COP/8/6 2 BACKGROUND 1. At its Seventh session, the Conference of the Parties (COP) decided to intensify the work of the Panel of Experts on the Protocol to Eliminate Illicit Trade in Tobacco Products (Panel of Experts). 1 COP requested the Panel of Experts: (a) to report to COP8, and if applicable to the First Meeting of the Parties (MOP1) to the Protocol, on the progress of its work and any findings; (b) to establish the following priorities as guidance for its work: i. assistance to the Convention Secretariat with the preparation of a draft agenda and, as appropriate, relevant documents for MOP1; ii. development of a forum for the exchange of best practices among Parties; iii. provision of technical assistance to parties by documenting exchanges of best practices and by mapping of emerging traceability systems; iv. support to Parties with free-trade zones in implementing the Protocol; v. advice to Parties on experiences with licensing regimes; and vi. development of proposals for consideration at MOP1 as to the future work in the area of fighting illicit trade, including the initial thoughts on the structure of a global information-sharing focal point. WORK OF THE PANEL OF EXPERTS 2. With the support of the Convention Secretariat, the Panel of Experts met three times to agree on its priority actions, to develop proposals for consideration at MOP1, and to discuss a draft agenda and relevant documents for MOP1. 3. During the first meeting held in Geneva, Switzerland, from 8–9 June 2017, the Panel of Experts discussed organization of work and priority actions including the development of examples of case studies for the preparation of ratification/accession, development of a forum for the exchange of best practices among Parties to the Protocol, and drafting a report on good practice models for licensing. The Panel of Experts also proposed a technical subgroup, composed of five members of the Panel of Experts and two external experts, to analyse issues related to “tracking and tracing” at its next meeting. 4. Based on the guidance of the Panel of Experts, the Convention Secretariat developed case studies for the preparation of ratification/accession and set up a web-based forum for Parties to the Protocol to exchange best practices in combating illicit trade in tobacco products. The Convention Secretariat proposed that each Party should be represented by three participants, representing three areas of government (ministry of foreign affairs, health ministry and customs). As of the date of this report, 10 Parties to the Protocol have nominated representatives to the forum for the exchange of best practices. 2 5. At the second meeting of the Panel of Experts, held in Geneva, Switzerland, on 16–17 November 2017, the technical subgroup discussed and drafted a series of recommendations in the form of a roadmap for the implementation of a tracking and tracing system and a document on the minimum technical requirements for developing a tracking and tracing system compliant with the Protocol; it also discussed the possible structure of a global information-sharing focal point. 1 Decision FCTC/COP7(6) Status of the Protocol to Eliminate Illicit Trade in Tobacco Products. 2 Austria, Congo, Ecuador, European Union, Iraq, Montenegro, Portugal, Serbia, Spain and Uruguay. FCTC/COP/8/6 3 6. The Panel of Experts also recommended that the Convention Secretariat seeks cooperation with other international intergovernmental organizations involved in combatting illicit trade. 7. In this context, the Convention Secretariat in September 2017 and January 2018 approached the World Customs Organization (WCO) to discuss cooperation in promoting the entry into force of the Protocol. Additionally, during the second meeting of the Panel of Experts, the United Nations Office on Drugs and Crime (UNODC) was invited to present the UNODC–WCO Container Control Programme (CCP) experience. 8. At its third meeting, held in Cape Town, South Africa, from 10–13 March 2018, the Panel of Experts agreed to submit for consideration of the MOP several background documents. These contain proposals for consideration at MOP1 as to the future work in the area of fighting illicit trade, including: (a) recommendations on the roadmap for implementation of a tracking and tracing system; (b) recommendations on the minimum technical requirements for developing a tracking and tracing system compliant with the Protocol; (c) initial thoughts on the possible structure of a global information-sharing focal point; and (d) the report on good practice models for licensing. 9. Moreover, the Panel of Experts reviewed developments in the field of tracking and tracing technologies, as well as previous studies undertaken to map out emerging traceability systems, and found that the currently available studies should be updated in order to reflect the most recent developments. Accordingly, the Panel of Experts suggested that MOP1 may consider mandating the Convention Secretariat to commission an updated global analysis of the feasibility of existing and emerging systems for tracking and tracing. 10. Furthermore, the Panel of Experts noted that an important part of illicit trade in tobacco products seemed to stem from free zones or tobacco products in international transit. Therefore, the Panel of Experts recommended that the tracking and tracing system should also apply to free zones and international transit areas. 11. Considering that several provisions must be implemented by Parties within a certain period following the entry into force of the Protocol, namely Articles 6.5 (key inputs, five years), 8.1 (global tracking and tracing, five years), 8.3 (identification markings, five and 10 years), and 13.2 (duty-free sales, five years), the Panel of Experts suggested that MOP1 should consider: (a) establishing an expert group mandated to prepare recommendations/guidelines on the implementation of tracking and tracing systems in accordance with Article 8, including the global information-sharing focal point (Article 8.1) and unique identification markings for cigarette packets and packages (Article 8.3); and (b) requesting the Convention Secretariat to conduct evidence-based research on key inputs essential to the manufacture of tobacco products that can be subject to an effective control mechanism (Article 6.5), and on the extent of illicit trade in tobacco products related to duty- free sales (Article 13.2). 12. Additionally, the Panel of Experts suggested that MOP1 should consider: (a) establishing two working groups mandated to prepare recommendations/guidelines for the implementation of international assistance and cooperation (Articles 23 and 24) and on mutual administrative and legal assistance (Articles 28 and 29); FCTC/COP/8/6 4 (b) adopting a code of conduct for Members of the MOP Bureau and the regional coordinators taking into consideration the commercial and other vested interests of the tobacco industry and other industries relevant to the implementation of the Protocol; and (c) adopting two workplans and budgets, one for the financial period 2018–2019 and the other for 2020–2021. 13. In this respect, the Panel of Experts suggested amendments on the draft provisional agenda and agreed on relevant documents of MOP1 prepared by the Convention Secretariat. 14. The members of the Panel of Experts were invited by the Convention Secretariat to participate in several multisectoral, subregional workshops to promote the entry into force of the Protocol. At least 55 Parties to the WHO Framework Convention on Tobacco Control (WHO FCTC) attended these workshops between COP7 and COP8. 15. The Panel of Experts also provided technical assistance to WHO FCTC Parties engaged in the process of accession/ratification and implementation of the Protocol. ACTION BY THE CONFERENCE OF THE PARTIES 16. The COP is invited to note this report. = = =