Regulated and Security

Excise Programs for Governments

Protecting government revenues and consumer safety.

Illicit trade is on the rise, undermining tax revenues and often public safety. As such, governments need trusted partners to deploy secure and scalable excise programs.

In the face of mounting demands on government spending and strained budget deficits, revenue authorities are under increasing pressure to raise and protect excise revenues. At the same time, tobacco, alcohol, and sugar are some of the products that are being targeted with controls for public health reasons, including 85 countries now having implemented indirect taxes on sugar. But with 450 billion contraband cigarettes sold each year and one in four alcoholic drinks now thought to be counterfeited, assuring the collection of excise duties is not simple.

Governments lose around $40 billion annually in tax revenues to illicit tobacco.

International initiatives and legislation to curb tobacco consumption are now well progressed. The Framework Convention on Tobacco Control (FCTC) from the World Health Organization (WHO) and the EU Tobacco Products Directive (EU TPD) provide clear guidance on the tracing of tobacco throughout the supply chain, as well as the security considerations and transparency characteristics that bring integrity to such programs.

Implementing an excise program involves an integrated and multi-partner approach.

Meeting the technical, legislative, and security requirements of excise schemes is just the start. Key stakeholders across both government and industry must be addressed from the outset to ensure a successful implementation. Multiple production lines and very high product volumes pose practical challenges, and the additional risk of unauthorized activity within manufacturing or distribution requires a system that is resilient to abuse.

OpSec provides a proven solution to partners and governments worldwide.

  • Gaining oversight and control of indirect taxation programs.
    The OpSec traceability and compliance software platform creates a secure digital foundation for excise programs. It supports very high volume serialization to generate unique product identifiers (UIDs) for printing on tax stamps or direct-to-product. UIDs are associated with products and packaging to capture metadata and supply chain events, creating a traceable history for each unit and supporting the reporting needs of authorities. Codes are ordered via a secure portal and can be activated automatically by integrating with production line equipment. We work closely with system integration partners to deploy our software.

  • Intelligence-led enforcement and reporting.
    We offer mobile enforcement and real-time reporting with custom dashboards. Mobile enforcement allows customs agents to scan UIDs and inspect product metadata. The OpSec platform records the location of each scan and geo-tags to provide insights and business intelligence, including visibility around tax stamp production, distribution, and application. Customizable dashboards offer details on specific manufacturing sites or distribution partners. This is all available in an open-API platform for seamless integration with internal e-tax systems, as well as supporting role based permissions for secure, controlled access to data.

  • Adding overt security to tax stamps.
    OpSec offers a comprehensive portfolio of optical security foils to add multi-layered security and simple visual authentication to tax stamps. We can incorporate national emblems that make it simple to identify tax stamps and secondary verification tools enable quick and reliable validation of optical security features using smartphones. With a vertically integrated approach that spans design, origination, production, and base materials, we work closely with our security print partners to trial and integrate our security foils.

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