Tax stamps
Integrating with manufacturing lines
DLR certify mobile app
Government revenue solutions
In the wake of growing economic risks and rising inflation, governments will be considering how they can address national balance sheets. According to the IMF, public and private debt has reached new record highs and "countries will face increasingly difficult policy trade-offs as they tackle rising inflation, heightened macro-financial risks, and slowing growth." Digital Tax Stamp schemes enable governments to optimize collection of excise revenues and to close tax gaps caused by illicit trade.
The World Bank stated that there are annual losses of between $40 billion and $50 billion from tobacco alone through illicit trade. Increased tax receipts help stabilize economies, providing security for jobs, trade and the health and wellbeing of citizens and provide wider benefits by making a country more attractive to foreign direct investment in manufacturing.
The World Economic Forum values illicit trade as a $2.2 trillion industry that undermines excise revenues, damages business, harms consumers and benefits criminals. An OECD study published in 2019 (Trends in Trade in Counterfeited and Pirated Goods) estimated that counterfeit and pirated goods accounted for more than 3% of global trade, a value in excess of $500 billion based on customs seizure data; this value is significantly higher if it includes genuine products traded illicitly.
Our solutions support governments in implementing projects that ensure excise revenue certainty, protecting nations and their citizens from the impact of illicit trade.
Our Digital Tax Stamp solutions operate by linking unique identifiers to products, enabling the full traceability of genuine goods and the collection of tax revenues. For tobacco, the solutions are compliant with the requirements of the World Health Organization’s Framework Convention on Tobacco Control, Illicit Trade Protocol.
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Engaging stakeholders to deliver certainty
By engaging with all stakeholders and offering expert advice, support, and project management across government and industry, our solutions deliver relevant and achievable security measures. This approach ensures early collaboration with a diverse range of global actors, including Ministries of Finance, Tax Authorities, Customs Agencies, Health Administrations, enforcement teams, standards organizations, importers, manufacturers, supply chain agents, and the general public.
From ensuring the effective implementation of schemes across multiple manufacturers’ production sites to providing tailored training for revenue and customs officers, our solutions are designed to scale and adapt to each country's specific needs. This approach considers the diverse requirements of all stakeholders, ensuring seamless execution and long-term success.
Enhancing data and security
Digital tax stamp schemes generate and secure excise revenues while protecting citizens from dangerous illicit products. Through a modular platform, these solutions can be quickly and efficiently deployed, providing tax authorities with independent insights and data analytics to control and audit the movement of legitimate products.
Governments can safeguard their revenues, citizens, and trade by implementing a scheme built on three core elements:
- Secure marking of products
- Supply-chain traceability and data management
- Product authentication and inspection
Find out more about our DLR Certify Platform
Enforcing measurable results
Through the verification of the production volume of the excise goods, governments can confirm that the collected excise taxes match with the genuine volume of goods manufactured and imported. This must work in conjunction with inspections and law enforcement.
Our authentication solutions have helped reduce illicit trade worldwide. In one country, the illicit trade in tobacco products dropped from 68% to an estimated 5%, while tax revenues from these products increased 15-fold, becoming the second-largest source of national income after fuel.
We focus on delivering measurable results for every customer by implementing tailored revenue protection solutions on time and within budget. With a long-standing track record of expertise, our solutions provide the reliability and effectiveness that governments can trust.
Case studies
United Arab Emirates
In partnership with the Federal Tax Authority (FTA) of the United Arab Emirates (UAE), De La Rue delivered a Digital Tax Stamp (DTS) solution to track and trace tobacco products to carry both a physical tax stamp and digital code on their packaging. UAE Customs Authorities were fully trained and equipped to inspect, accept and approve all shipments which are being tracked from manufacturer through importer and into the supply chain in the UAE. The solution ensures that the UAE complies with the World Health Organization’s Framework Convention for Tobacco Control, designed to minimize illicit trade in tobacco-based products. The UAE has expanded its scheme and hailed its Excise Tax to be a great success.
