The MoU will be signed later by the Directorate General of Lebanese Customs.
The agreement forms part of a comprehensive national plan endorsed by the Ministry of Finance to fight cigarette counterfeiting and smuggling operations and thereby reduce the negative effect that such activities have on the national economy and government tax returns, as well as the operations of legitimate tobacco companies such as British American Tobacco.
During the signing ceremony Mr. Nassif Siklaoui, Chairman-General Manager of the Lebanese Régie, said: "This agreement, under the sponsorship and guidance of the Minister of Finance Mr. Jihad Azour, lays the foundations for serious and sustained cooperation between the parties concerned in the fight to combat cigarette smuggling and counterfeiting. The main objective of this initiative is to put an end to the damage and financial loss caused by illegal tobacco operations, which affects the government, citizens and legitimate tobacco companies."
He also highlighted that "the cooperation between both the public and private sectors in combating the trade in illegal tobacco products will not only benefit the Lebanese consumer, but will be a key factor in helping reinstate Lebanon on the world map as a commercial and economic hub."
The MoU aims to set up procedures to fight cigarette smuggling and counterfeiting in accordance with Lebanese laws and regulations. It will establish a framework to allow for the full exchange of information and expertise between British American Tobacco and the Lebanese authorities; offer technical training to government personnel operating on the ground to help them identify counterfeit products; provide measures to destroy seized counterfeit products; and raise awareness about the financial losses caused by the illicit trade in tobacco products.
Omar Bseiso, General Manager of British American Tobacco in Lebanon stated: "Smuggling and counterfeiting affect the state's treasury, law enforcement administrations, legitimate tobacco companies and citizens alike. It is unquestionable that tackling illicit trade requires close cooperation between the government and tobacco companies if we are to uphold national laws and protect the rights of consumers."
Experts estimate that national governments around the world lost over $20bn in tax revenues from the illicit trade in tobacco products in 2006 alone. This will undoubtedly increase if the issue is not tackled appropriately. Additionally, counterfeit cigarettes do not meet the minimum product quality standards agreed upon by the International Organisation for Standardisation (ISO).
British American Tobacco is committed to supporting the Lebanese government in its efforts to reduce tobacco smuggling and counterfeiting. In the last three years, the company has signed similar Memoranda in the region with the concerned governmental bodies in Jordan, Yemen and Egypt.
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Lebanese Régie signs a Memorandum of Understanding with British American Tobacco
- Lebanon: Wednesday, November 14 - 2007 at 09:40
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Under the auspices of the Minister of Finance Mr. Jihad Azour, the Régie Libanaise des Tabacs et Tombacs and British American Tobacco (BAT) have signed a Memorandum of Understanding (MoU) agreeing to coordinate efforts to combat cigarette smuggling and counterfeiting in Lebanon.
During the signing (L-R) Mr. Omar Bseiso and Mr. Nassif Siklawi.
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Posted by Lara Lynn Golden, News EditorWednesday, November 14 - 2007 at 09:40 UAE local time (GMT+4)
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About British American Tobacco
British American Tobacco is the world's most international tobacco group. With more than 300 brands in its portfolio, BAT makes the cigarette chosen by one in seven of the world's one billion adult smokers. The Group has 81 cigarette factories in 64 countries, producing some 853 billion cigarettes in 2004. BAT, including associated companies, employs more than 90,000 people worldwide.
Fact Sheet
About Illicit Trade
Illicit trade in tobacco products (illicit manufacturing, counterfeit, and smuggling) represents a major problem for the tobacco industry as well as for governments.
Tackling illicit trade requires co-operation and understanding between legitimate tobacco companies, governments and organisations such as the World Customs Organisation, World Trade Organisation and World Health Organisation.
For its part, the British American Tobacco Group seeks to collaborate with all involved parties to fight illicit trade in tobacco products, as part of its strategy and in respect to its values.
Facts:
It is estimated that, globally, some 320 billion cigarettes smoked in 2006 were illegal - both counterfeit and genuine products that were smuggled. This is about 6 per cent of total world consumption.
British American Tobacco fully supports regulators, governments and international organisations such as the World Customs Organisation, the World Trade Organisation and World Health Organisation in seeking to eliminate all forms of illicit tobacco trade.
Illicit trade blows big holes in governments' budgets. It is calculated that in 2006, some US$20 billion was lost in tobacco taxes worldwide. Losses will be higher still, as smugglers don't declare their earnings for income tax either. Some governments are unaware of how bad the problem is and do not acknowledge its link to tax levels. BAT encourages its companies to carry out research to help show governments the benefits of tackling illicit trade and discouraging it through balanced tax policy.
Background
In the past 3 years, British American Tobacco has signed Memoranda of Understanding with the relevant authorities in Jordan and Yemen to help tackle illicit trade through joint action and shared intelligence, dialogue with concerned parties on ways to prevent illicit trade, providing information to the authorities to combat illicit trade, monitoring seizures and destruction of illicit stock, involvement in government task forces, and training for government officials (namely Customs officials) on how to identify counterfeit products. In addition, these Memoranda of Understanding stipulate the existence of exchange of expertise between the parties concerned.
MOU signed with ASEZA (Aqaba Special Economic Zone Authority) in Jordan
MOU signed with the National Customs Department in Jordan
MOU signed with the Tax Department in Yemen
Government officials trained across the Middle East to identify counterfeit products.
Joined the Jordanian Intellectual Property Association in order to raise awareness about the intellectual property rights
Key member in Brand Protection Group (BPG) in Lebanon and Jordan.
Contacts:
Nasser Qudah
Head of Corporate and Regulatory Affairs (CORA)
Tel: 01-372640 ext.142
Marwan Hert
Regional Manager for Lebanon and Syria
Tel: 01-372640 ext.133
British American Tobacco is the world's most international tobacco group. With more than 300 brands in its portfolio, BAT makes the cigarette chosen by one in seven of the world's one billion adult smokers. The Group has 81 cigarette factories in 64 countries, producing some 853 billion cigarettes in 2004. BAT, including associated companies, employs more than 90,000 people worldwide.
Fact Sheet
About Illicit Trade
Illicit trade in tobacco products (illicit manufacturing, counterfeit, and smuggling) represents a major problem for the tobacco industry as well as for governments.
Tackling illicit trade requires co-operation and understanding between legitimate tobacco companies, governments and organisations such as the World Customs Organisation, World Trade Organisation and World Health Organisation.
For its part, the British American Tobacco Group seeks to collaborate with all involved parties to fight illicit trade in tobacco products, as part of its strategy and in respect to its values.
Facts:
It is estimated that, globally, some 320 billion cigarettes smoked in 2006 were illegal - both counterfeit and genuine products that were smuggled. This is about 6 per cent of total world consumption.
British American Tobacco fully supports regulators, governments and international organisations such as the World Customs Organisation, the World Trade Organisation and World Health Organisation in seeking to eliminate all forms of illicit tobacco trade.
Illicit trade blows big holes in governments' budgets. It is calculated that in 2006, some US$20 billion was lost in tobacco taxes worldwide. Losses will be higher still, as smugglers don't declare their earnings for income tax either. Some governments are unaware of how bad the problem is and do not acknowledge its link to tax levels. BAT encourages its companies to carry out research to help show governments the benefits of tackling illicit trade and discouraging it through balanced tax policy.
Background
In the past 3 years, British American Tobacco has signed Memoranda of Understanding with the relevant authorities in Jordan and Yemen to help tackle illicit trade through joint action and shared intelligence, dialogue with concerned parties on ways to prevent illicit trade, providing information to the authorities to combat illicit trade, monitoring seizures and destruction of illicit stock, involvement in government task forces, and training for government officials (namely Customs officials) on how to identify counterfeit products. In addition, these Memoranda of Understanding stipulate the existence of exchange of expertise between the parties concerned.
MOU signed with ASEZA (Aqaba Special Economic Zone Authority) in Jordan
MOU signed with the National Customs Department in Jordan
MOU signed with the Tax Department in Yemen
Government officials trained across the Middle East to identify counterfeit products.
Joined the Jordanian Intellectual Property Association in order to raise awareness about the intellectual property rights
Key member in Brand Protection Group (BPG) in Lebanon and Jordan.
Contacts:
Nasser Qudah
Head of Corporate and Regulatory Affairs (CORA)
Tel: 01-372640 ext.142
Marwan Hert
Regional Manager for Lebanon and Syria
Tel: 01-372640 ext.133
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