Local retailers warned to prepare for new illicit tobacco rules

From 20 July 2023, new sanctions come into force which will mean retailers selling illicit tobacco can receive a penalty of up to £10,000.

Trading Standards officers will now have the power to refer cases to HMRC for further investigation where businesses or individuals have been found to sell illicit tobacco. HMRC, where appropriate, will administer the penalties and ensure the appropriate sanction is applied and enforced. Depending on the severity of the breach, rule-breaking businesses could:

Receive a penalty of between £2,500 and £10,000 for the supply of products which contravene Tobacco Track & Trace (TT&T)
Have their tobacco products seized
Lose their license to buy tobacco for resale in the UK by having their Economic Operator ID withdrawn

The new powers build on the successful work of Operation CeCe, a joint initiative between Trading Standards and HMRC to tackle the illicit tobacco trade, which has removed 27 million illicit cigarettes and 7,500kg of hand rolling tobacco from sale in its first two years.

Trade in illicit tobacco costs the exchequer over £2 billion in lost tax revenue each year. It also damages legitimate businesses, undermines public health and facilitates the supply of tobacco to young people.

Lord Michael Bichard, Chair of National Trading Standards, said:

“The illegal tobacco trade harms local communities and affects honest businesses. Through Operation CeCe, we have removed 27 million illegal cigarettes and 7,500kg of hand-rolling tobacco from the supply chain and we welcome these new measures to clamp down further on the illicit tobacco trade.”

Read guidance about the new sanctions on GOV.UK.

Local retailers warned to prepare for new illicit tobacco rules