Stamping Out Illicit Trade: A Look Inside Excise Revenue Protection

As illicit trade becomes more advanced, how do governments protect their revenues, citizens, and natural resources? Meet the insiders at Crane Authentication, where pioneering strategies, innovative technologies, and deep industry expertise come together to deliver proven solutions for governments worldwide.

Our dedicated team, including optical scientists, integration engineers, and analysts, understands the intricacies of governmental regulations and thrives on solving complex challenges with innovative thinking. Hear directly from our experts as we share their Voices and Viewpoints.

Steven Proudfoot, our experienced Product Director for Government Solutions, explores our proactive approach to excise revenue protection and regulatory programs. Driven by a desire to understand and resolve country-specific pain points, Steven works alongside a global team to support government agencies as they implement systems that reduce illicit trade and protect public safety.

Steven advises government agencies and partners around the world on how to best protect their countries from illicit trade. He conducts detailed research to understand local pain points and works directly with governments to develop excise revenue and traceability programs that protect both revenue streams and citizens.

Q: What challenges do governments face when fighting illicit trade?

A: Governments implement tax stamp and traceability solutions to address counterfeit goods, illicit production, and smuggling. However, several challenges can arise during implementation. One issue is selecting the most appropriate stamp technologies for the target industries, while ensuring enforcement officers can effectively enforce the program. For instance, in fast-paced, wet production environments where traditional tax stamps may not adhere well, direct to product printing with secure unique codes can be a viable alternative. Another consideration is the specific market dynamics of each country, particularly the balance between large manufacturers and small importers. Developing the technical solution that monitors both effectively while remaining practical to implement and manage is crucial.

Q: How do you support government agencies to protect excise revenues in unique ways?

A: Governments rely on tax stamp and traceability systems to combat counterfeit goods, illicit production, and smuggling. However, several challenges can arise. One key issue is selecting the most appropriate tax stamp or marking technology for the industry being regulated. Enforcement officers must also be able to verify products effectively.

In high-speed or wet production environments where traditional tax stamps do not adhere well, direct to product printing with secure unique codes may be a more practical choice. Governments must also consider their unique market dynamics, including the balance between large manufacturers and small importers. Designing a solution that effectively monitors all supply chain participants while remaining practical and enforceable is critical.

Q: How do you support government agencies in unique ways?

A: I begin by conducting a detailed country analysis to identify challenges and determine what information is needed to address them. Each country brings its own complexities, such as tax structures, geographic constraints, market dynamics, regional legislation, and border control processes.

For example, I worked with our sales and solutions teams to develop an excise revenue and traceability program for a European Union member country preparing to comply with new tobacco traceability requirements. We knew early on that the regulations would require the generation of specific unique identifiers, along with authentication stamps containing advanced security features. Through research and testing, we adapted our traceability software so the system was compliant at launch, even as regulations continued to evolve during implementation.

In another country with a state-owned tobacco sector, we provided authentication stamps and full traceability capabilities. We also used Crane Authentication’s broader technology portfolio to identify illegal tobacco sales and harmful social media content. Our online brand protection tools uncovered numerous violations and enabled enforcement actions that protected both revenues and reputation.

“I worked closely with our team to establish an excise revenue and traceability program that complied with new EU tobacco traceability regulations.”

The Tobacco Products Directive 2014/40/EU created a Europe-wide system for tobacco traceability.

Q: What type of data should be collected?

A: Our approach is centered on delivering actionable business intelligence. While our Insight traceability platform can capture extensive data, it is important to maintain focus on the program’s core objectives. Governments often need detailed information on domestically produced excisable goods, imported products, enforcement activity and locations, and alignment with excise and import declarations.

However, every country is different. The information collected in one may not be appropriate for another. Tailoring the data strategy to each government's specific challenges is essential.

Q: Beyond losing excise revenue, what other concerns do governments face?

A: Protecting public health and safety is a major priority. Crane Authentication supports governments by helping authenticate type-approved products, including cigarette lighters and electrical appliances. Many countries also rely on vehicle registration programs to protect citizens from unsafe vehicles and to deter organized crime. This is a growing area of our portfolio. We are also expanding programs to protect vehicle tires and motorcycle helmets due to the risks posed by reused or substandard products.

Environmental protection is another growing focus. Governments are looking to safeguard natural resources such as timber and fuel. Illegal logging contributes significantly to global deforestation, and illicit fuel trading harms economies, supports criminal activity, and damages the environment. In response, several countries have implemented timber and fuel marking programs as part of their national protection strategies.

“Governments are increasingly focused on protecting valuable natural resources such as timber. Illegal logging is a major contributor to deforestation.”

An estimated 15 to 30 percent of all wood traded globally comes from illegal logging.

Q: What emerging trends should governments prepare for?

A: Traditional tobacco and alcohol traceability programs are expanding to cover new product categories, including soft drinks, sugar, bottled water, lubricating oils, mobile phones, and livestock. This expansion has prompted new thinking around how product identifiers are applied. Technologies such as direct to product marking, RFID or NFC tagging, and embedded digital codes are increasingly being deployed.

There is also a growing focus on environmental protection. Governments are under pressure to adopt sustainability solutions, particularly in plastics, batteries, and timber. A notable global trend is the development of Digital Direct Return Schemes. These programs encourage consumers to recycle single-use plastic containers by offering refunds or rewards.

Join the fight against illicit trade

Illicit trade threatens government revenue, public safety, and natural resources. Crane Authentication specializes in building comprehensive excise programs that address the unique challenges facing governments worldwide. From advanced tax stamps to secure track and trace systems, our solutions help protect excise revenues and ensure compliance with evolving legislation.

Want to learn more? Contact us today to discover how our proven solutions can help you stamp out illicit trade.