Geneva, Switzerland, 14 December 2007 - - Japan Tobacco International (JTI) today announced the signing of a 15-year agreement with the European Commission and 26 Member States of the EU defining their cooperation to combat the illegal trade of cigarettes in the European territory.
“The fight against cigarette smuggling and counterfeiting is an important business priority for JTI,” said Pierre de Labouchere, President and CEO of JT International. “Combining the resources and coordinating the efforts of both government and business is the only solution,” he explained.
In 2006, nearly 5 billion contraband cigarettes were seized in the European Union and this represents only what has been reported. The figure for seizures of counterfeit cigarettes is estimated to be about 65 percent of that total. The World Customs Organization (WCO) estimates that Europe as a whole accounts for 75 percent of total cigarettes seized in the world. While a precise figure for counterfeit cigarettes is difficult to establish, it is clear that the production of fake cigarettes has increased dramatically over the last three years.
“This massive, sophisticated global business penalizes our legitimate customers and our consumers – who sometimes don’t get what they pay for – while depriving governments of legitimate revenues,” continued Mr. de Labouchere.
The forward-looking agreement announced today builds upon and confirms a number of JTI initiatives that have been implemented over the years. Under its terms, the company will maintain and expand its current internal compliance programs that address the manufacture, sale, distribution and storage of cigarettes; it will facilitate investigations of reported breaches and suspicious transactions; continue JTI’s certification of contractors and customers while ensuring transparent payment procedures for all transactions.