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<p>HM Revenue and Customs (HMRC) appointed De La Rue as the UK ID Issuer for the tobacco
track and trace scheme following a comprehensive external commercial exercise.</p><p>
</p><p>The audit requirements are set out in the Tobacco Products Directive (2014/40/EU)
and implemented through the Tobacco Products (Traceability and Security Features)
Regulations 2019. The regulations require De La Rue and their sub-contractors to provide
HMRC with an annual declaration to ensure compliance with the independence criteria.
The declaration must include a full list of services provided to the tobacco industry
during the last calendar year, and a statement of the annual amount of worldwide turnover
including how much of that turnover is generated from goods and services provided
to the tobacco industry.</p><p> </p>HMRC recognises the importance of protecting tobacco
public health polices from the commercial and vested interests of the tobacco industry,
however it would be premature to reassess its contractual arrangements with De La
Rue while the Serious Fraud Office investigation is ongoing.
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