Issue link: https://read.dmtmag.com/i/550310
tobaccoasia 19 www.sodim.com THE ULTIMATE IN MODULARITY: with up to 15 different plug & play modules, pick and choose 1 to 6 modules to build your ideal test station. As your needs vary, you can change a module or extend each frame at any time. Another bonus: all modules from the previous station generation are fully compatible. Contact us to fi nd out more. METROLOGY – MADE BY SODIM MAXIMUM FLEXIBILITY – THE NEW SODILINE FAMILY Sodiline_115x191_TA_Island.indd 1 12.05.2014 15:37:28 replacement of branded stock on retailers' shelves with plain packaged stock. This does not mean sales volumes were double- counted in 2012, it does however mean that from a tobacco clearance perspective it was double-counted as we must pay tax on ev- ery packet we sell and most refunds for the payment of excise tax on the branded stock to be destroyed were not processed until the first quarter of 2013." "Assuming a similar approach by other companies, it's therefore not surprising that the treasury's tobacco clearances in 2013 may have been below the inflated 2012 figures, nor is it incompatible with the industry data that shows a 0.3% (59 million stick) increase in actual sales for the 2013 calendar year." Another unfortunate effect of plain packaging has been a jump in sales of illicit tobacco, since the packs are easier to coun- terfeit, which in and of itself poses a much bigger health concern and a de facto securi- ty threat. Accounting firm KPMG estimates that illicit tobacco, whether smuggled, counterfeit or illegal, jumped from 11.8% of the Australian tobacco market to 13.3% from June 2012 to June 2013. Since plain packs were introduced over 400 million ad- ditional illegal cigarettes have been smug- gled into the country. The illegal tobacco market in Australia is now equal to around 2.7 billion cigarettes overall. The key driver of this growth has been a large increase in the consumption of illegal, branded ciga- rettes, primarily in the form of contraband. Consumption of counterfeit cigarettes has also increased. The 151% increase in black market, branded cigarettes has come at the same time as volumes of illicit unbranded tobacco, known as "chop chop" in Aus- tralia, have declined by 31%. If these black market purchases had been made in the legal market, the government would have collected A$1.1 billion (US$1.03 billion) in additional excise tax revenue. "With growth in industry volumes, fewer people quitting, and a jump in the amount of cheap illegal cigarettes on the streets, you could draw the conclusion that people are actually smoking more now than before plain packaging came into effect," said BATA's McIntyre. Complaints against Australia's plain packaging laws are not limited only to home ground. Cuba, Dominican Republic, Hon- duras, Indonesia, and Ukraine have all filed complaints against Australia with the World Trade Organization (WTO) because of the threats to both trademarks and economies posed by this law. Since the WTO dispute settlement understanding (DSU) was cre- ated in 1995, there have been more than 500 cases initiated. In the single case involv- ing tobacco control regulations – the Indonesia-US case on clove cigarettes – the WTO ruled in favor of Indonesia, stating in no uncertain terms that the US measures had "discriminatory intent." Significantly, Australia's actions in relation to plain packaging of tobacco products have begun to impact the way some countries view other products. Indonesia's trade minister, Gita Wirjawan, has said that Indonesia should implement plain packaging of Australian wine as a form of "retaliation". Following these comments, the director general of international trade cooperation of the Ministry of Trade, Iman Pambagyo, said that there was a possibility that the Indonesian government would impose the plain packaging policy on wine from Australia. "Put simply, there's no consistent, credible evidence that plain packaging is work- ing as a public health measure," said Argent. "But there is clear and credible evidence