The Tobacco Institute of Southern Africa
ILLICIT TRADE IN CIGARETTES
25 March 2015
COMESA BUSINESS COUNCIL
TISA Overview
•
TISA represents the entire tobacco value chain incl. farmers, leaf processors, leaf merchants,
manufacturers, importers and exporters of tobacco products; in the legal industry. TISA’s mandate
extends into the SACU/SADC region.
•
TISA believes public / private partnerships between governments and tobacco sector in the region
and globally is the only sustainable solution to address all matters related to the tobacco sector,
including the combat of illicit trade in tobacco products.
•
TISA views the escalation of Illicit Trade as
a serious threat to the sustainability
of the legal tobacco industry, eroding Government revenue,
while total consumption could be stable or
even increasing, threatening governments’ health objectives.
What is illegal trade & its impacts?
Collective loss on
excise only est. at
over US$490Mn for
SAA in 2013; 99% of
which loss to SACU
excise pool
Export Processing Zones
Tobacco Processing Plants
Manufacturing Capacity
Industry Collaboration in Combatting Illicit Trade
Operational capabilities across the
supply chain
Active Participation and Pro
Active Ongoing Engagement
Regional
Engagement
Increased awareness of illicit
& tactical projects
Training & Enablement
Full Support on Administrative
Controls aimed at Illicit
Proposed Solutions
Research, Analysis
& Information
Sharing
Administrative
Actions
Enforcement
Actions
Engagement/
Integrated Approach
Closing Remarks
•
Legal tobacco sector should ensure good governance and remain
compliant in all respects.
•
All actions by the legal tobacco sector in partnership with governments
in the region.
•
Proposal for consideration:

AIT COMESA SUB-COMMITTEE integrated across countries and in
cooperation with the legal tobacco sector.

Communication and integration amongst trade blocs.
•
The legal tobacco sector is ready and committed to cooperate with
governments and trade blocs in the region.
•
Improved compliance and reduced illicit incidence contributes to better
trade facilitation and improved investor confidence.
The Tobacco Institute of Southern Africa
Thank you
Confidentiality Notice and Standard Disclaimer:
This document is confidential and may contain non-public, proprietary and privileged information. It reflects TISA’s understanding of
the market based on information available at the time. Figures and statistics referred to herein, represent an industry view based on
external research and publicly available marketing information. The definition of “illicit trade” for purposes of this document includes
any product sold to consumers below R16,50, and/or being non-compliant to the Tobacco Products Control Act, No 83 of 1993 (as
amended). The various brands referred to herein are assumed to be manufactured and /or distributed by the corporate entities who
publicly claim to do so. TISA accepts no responsibility or liability whatsoever with regard to the information or statistics quoted
incorrectly or out of context from this presentation by any person.