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<p>HM Revenue and Customs’ (HMRC’s) consultation ‘Tobacco Illicit Trade Protocol –
licensing of equipment and the supply chain’ sought views on two aspects of the Protocol.
These were the mandatory licensing of tobacco manufacturing machinery and the potential
licensing of participants in the supply chain of tobacco products for the purposes
of tackling the illict trade.</p><p> </p><p>A response document on the licensing of
tobacco manufacturing machinery was published on 5 December 2016 and draft legislation
was published at the same time.</p><p> </p><p>Licensing of the supply chain is more
complex and could affect a large number of UK businesses. Therefore, while HMRC is
in a position to proceed to implementation of the licensing of machinery, supply chain
licensing requires further consideration. A response document covering this aspect
of the consultation will be published later in the year.</p>
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