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PMI's Commitment

PMI's Commitment

Securing the supply chain

Fighting illicit trade is a high priority for PMI. Illicit trade in tobacco hurts our business, exposes consumers to substandard products which do not comply with any regulations, robs governments and taxpayers of needed tax revenues, and helps fund criminal organizations.

If the 600 billion illegal cigarettes consumed each year were to return to the legitimate market, it could be a source of significant growth for our business. For this reason, our Illicit Trade Strategies and Prevention team works every day to enhance our understanding of this problem and develop strategies and partnerships to tackle it.

Commitment to United Nations Global Compact (UNGC) Ten Principles

Fighting against the diversion of our products, and more generally against illicit trade in tobacco products, is also a key component of our sustainability program and supports our commitment to the UNGC Ten Principles.

Fighting illicit trade is directly linked to fighting corruption as well as contributing to improving human rights, labor rights and environmental standards – principles that organizations involved in illicit trade are likely to ignore or violate.Over the last few decades, PMI has invested considerable resources to maintain strict controls over its supply chain. These controls include our Know Your Customer and Know Your Payment programs, as well as our tracking and tracing system. Anti-diversion strategies are continuously being developed and applied across PMI to ensure coordinated and consistent implementation of Principles and Practices with the aim of preventing the diversion of PMI products.

Anti-diversion strategies are continuously being developed and applied across PMI to ensure coordinated and consistent implementation of Principles and Practices with the aim of preventing the diversion of PMI products.

Read: PMI Anti-Diversion Practices and Tools

You can’t really address a problem unless you understand it. This is why we work to develop a better understanding of the illegal market, its drivers and enablers, current volumes and trends, and the way the criminals behind it work.

The information we gather around the globe through numerous annual initiatives is shared with law enforcement and other authorities to support their efforts to fight illicit trade. It also helps us enhance our controls and strategies to further secure our supply chain and prevent the diversion of our products.

Securing the supply chain

Fighting illicit trade is a top priority for PMI. Illicit trade in tobacco hurts our business, exposes consumers to substandard products which do not comply with any regulations, robs governments and taxpayers of needed tax revenues, and helps fund criminal organizations.

If the 600 billion illegal cigarettes consumed each year were to return to the legitimate market, it could be a source of significant growth for our business. For this reason, our Illicit Trade Strategies and Prevention team works every day to enhance our understanding of this problem and develop strategies and partnerships to tackle it.

Commitment to United Nations Global Compact (UNGC) Ten Principles

Fighting against the diversion of our products, and more generally against illicit trade in tobacco products, is also a key component of our sustainability program and supports our commitment to the UNGC Ten Principles.

Fighting illicit trade is directly linked to fighting corruption as well as contributing to improving human rights, labor rights and environmental standards – principles that organizations involved in illicit trade are likely to ignore or violate.Over the last few decades, PMI has invested considerable resources to maintain strict controls over its supply chain. These controls include our Know Your Customer and Know Your Payment programs, as well as our tracking and tracing system. Anti-diversion strategies are continuously being developed and applied across PMI to ensure coordinated and consistent implementation of Principles and Practices with the aim of preventing the diversion of PMI products.

Anti-diversion strategies are continuously being developed and applied across PMI to ensure coordinated and consistent implementation of Principles and Practices with the aim of preventing the diversion of PMI products.

Read: PMI Anti-Diversion Practices and Tools

You can’t really address a problem unless you understand it. This is why we work to develop a better understanding of the illegal market, its drivers and enablers, current volumes and trends, and the way the criminals behind it work.

The information we gather around the globe through numerous annual initiatives is shared with law enforcement and other authorities to support their efforts to fight illicit trade. It also helps us enhance our controls and strategies to further secure our supply chain and prevent the diversion of our products.

Effective tracking and tracing processes and supporting technology are essential to securing supply chains. Tracking is the ability to follow the forward movement of products, whereas tracing is the ability to recreate this movement.

Tracking and tracing helps authorities to identify potential points of diversion from legitimate channels to illegal ones, and enables the legitimate manufacturing industry to enhance controls over its supply chain. Tracking requires all actors involved in the supply chain (manufacturers, logistics providers, distributors, etc.) to have procedures in place and interoperable systems to record product movements on an ongoing basis. For many years, law enforcement agencies in various countries have been relying on the availability of PMI Tracking and Tracing data.

Since the beginning of the millennium, PMI has been investing significantly in establishing a worldwide tracking and tracing program, operating today in over 600 manufacturing lines located in 50 factories and in 700 supply chain locations across the globe, relying on interoperable technology which enables to monitor the movement of our products in more than 120 countries.

Effective tracking and tracing processes and supporting technology are essential to securing supply chains. Tracking is the ability to follow the forward movement of products, whereas tracing is the ability to recreate this movement.

Tracking and tracing helps authorities to identify potential points of diversion from legitimate channels to illegal ones, and enables the legitimate manufacturing industry to enhance controls over its supply chain. Tracking requires all actors involved in the supply chain (manufacturers, logistics providers, distributors, etc.) to have procedures in place and interoperable systems to record product movements on an ongoing basis. For many years, law enforcement agencies in various countries have been relying on the availability of PMI Tracking and Tracing data.

Since the beginning of the millennium, PMI has been investing significantly in establishing a worldwide tracking and tracing program, operating today in over 600 manufacturing lines located in 50 factories and in 700 supply chain locations across the globe, relying on interoperable technology which enables to monitor the movement of our products in more than 120 countries.

Raising public awareness about illicit trade and its consequences is key to tackling the demand for illegal cigarettes.

We promote awareness campaigns in several countries that are designed to inform the public and raise governments’ attention to the negative consequences of illicit trade. We also educate retailers about the serious implications of selling illegal cigarettes and offer advice on how to avoid becoming involved in the illicit trade.

Raising public awareness about illicit trade and its consequences is key to tackling the demand for illegal cigarettes.

We promote awareness campaigns in several countries that are designed to inform the public and raise governments’ attention to the negative consequences of illicit trade. We also educate retailers about the serious implications of selling illegal cigarettes and offer advice on how to avoid becoming involved in the illicit trade.

Below are examples of awareness campaigns we have sponsored or co-sponsored together with other parties around the world.

SPAIN (December, 2015)

Do you like smoking ‘Garrafón’? – Say no to contraband

Philip Morris Spain, S.L. and the National Union of Tobacconists Association launched the ‘Garrafón’ campaign in several tobacconists' stores in Andalucia and Extremadura. The campaign educated consumers about different types of illicit tobacco, notably bulk tobacco, which was for the first time an emerging phenomenon in the country.

SPAIN (December, 2015)

Do you like smoking ‘Garrafón’? – Say no to contraband

Philip Morris Spain, S.L. and the National Union of Tobacconists Association launched the ‘Garrafón’ campaign in several tobacconists' stores in Andalucia and Extremadura. The campaign educated consumers about different types of illicit tobacco, notably bulk tobacco, which was for the first time an emerging phenomenon in the country.

SPAIN (September, 2016)

We are losing EUR€1 billion to Garrafón tobacco – Say no to contraband

In its second wave, the ‘Garrafón’ campaign focused on fiscal evasion caused by illicit tobacco trade. This time round, campaign materials could be seen in tobacconists' stores across all regions of mainland Spain.

SPAIN (September, 2016)

We are losing EUR€1 billion to Garrafón tobacco – Say no to contraband

In its second wave, the ‘Garraón’ campaign focused on fiscal evasion caused by illicit tobacco trade. This time round, campaign materials could be seen in tobacconists' stores across all regions of mainland Spain.

GREECE (2016)

“Ekstrateia” Campaign

Papastratos CMC S.A., the Greek affiliate of PMI, together with the affiliates of Japan Tobacco International, British American Tobacco and Imperial in Greece have joined forces to fight illicit trade of tobacco products under the umbrella name “Ekstrateia”.

In the context of “Ekstrateia”, an awareness campaign was launched, which was supported by the Ministry of Finance, the Ministry of Economy and Development, the Ministry of Citizen Protection, the Ministry of Mercantile Marine, the Municipality of Athens, the Municipality of Thessaloniki, the Greek Association of Suppliers, the Greek Association of Kiosk Owners, the Pan-Hellenic Confederation of Unions of Agricultural Co-operatives and the Consumers’ Institute.

This was the first ever collaborative awareness campaign implemented nationwide on illicit tobacco trade. The campaign was extensive, with awareness material placed in Athens Metro, in 24 regional bus stations, in 38 newspapers as well as being featured on 10 radio stations.

The campaign was complemented by technical sessions organized for 750 law enforcement officers from 70 cities, during which the industry experts provided trainings on how to recognize illegal cigarettes.

GREECE (2016)

“Ekstrateia” Campaign

Papastratos CMC S.A., the Greek affiliate of PMI, together with the affiliates of Japan Tobacco International, British American Tobacco and Imperial in Greece have joined forces to fight illicit trade of tobacco products under the umbrella name “Ekstrateia”.

In the context of “Ekstrateia”, an awareness campaign was launched, which was supported by the Ministry of Finance, the Ministry of Economy and Development, the Ministry of Citizen Protection, the Ministry of Mercantile Marine, the Municipality of Athens, the Municipality of Thessaloniki, the Greek Association of Suppliers, the Greek Association of Kiosk Owners, the Pan-Hellenic Confederation of Unions of Agricultural Co-operatives and the Consumers’ Institute.

This was the first ever collaborative awareness campaign implemented nationwide on illicit tobacco trade. The campaign was extensive, with awareness material placed in Athens Metro, in 24 regional bus stations, in 38 newspapers as well as being featured on 10 radio stations.

The campaign was complemented by technical sessions organized for 750 law enforcement officers from 70 cities, during which the industry experts provided trainings on how to recognize illegal cigarettes.

FRANCE (2015 - 2016)

Information campaign on authorized purchased quantities

An information campaign was launched in December 2015 to inform adult travelers of appropriate quotas for bringing cigarettes purchased abroad back to France. This campaign underlined the maximum limits of imported cigarettes that someone is authorized to bring in from the EU, non-EU countries and Andorra. The campaign was deployed with the aim of reaching the traveler at every stage of their journey: the booking, points of departure and border-crossing. This was promoted digitally in major French cities and smaller cities on the country’s borders. A non-digital campaign, in the form of flyer distribution, also took place in July 2016 in some border cities and major seaports such as Marseille and Sète.

More details on the campaign: www.info-quota

FRANCE (2015 - 2016)

Information campaign on authorized purchased quantities

An information campaign was launched in December 2015 to inform adult travelers of appropriate quotas for bringing cigarettes purchased abroad back to France. This campaign underlined the maximum limits of imported cigarettes that someone is authorized to bring in from the EU, non-EU countries and Andorra. The campaign was deployed with the aim of reaching the traveler at every stage of their journey: the booking, points of departure and border-crossing. This was promoted digitally in major French cities and smaller cities on the country’s borders. A non-digital campaign, in the form of flyer distribution, also took place in July 2016 in some border cities and major seaports such as Marseille and Sète.

More details on the campaign: www.info-quotas.fr

BRAZIL (2016)

App against illicit trade

The Brazilian Brand Protection Group (BPG) launched a web app against illicit trade for smartphones and computers - ‘Combate ao Comercio Ilegal’. This app allows users to anonymously provide information to local authorities about the illicit trade of cigarettes and other illegal consumer goods.

Visit campaign’s web site here: www.combateaocomercioilegal.com.br

BRAZIL (2016)

App against illicit trade

The Brazilian Brand Protection Group (BPG) launched a web app against illicit trade for smartphones and computers - ‘Combate ao Comercio Ilegal’. This app allows users to anonymously provide information to local authorities about the illicit trade of cigarettes and other illegal consumer goods.

Visit campaign’s web site here: www.combateaocomercioilegal.com.br

CANADA (2016)

Anti-illicit trade campaign on social networks

Certain bloggers based in Canada, with support from the National Coalition Against Contraband Tobacco, communicated the dangers and negative consequences of contraband tobacco.

Visit one blogger's website here: Listentolena.com

CANADA (2016)

Anti-illicit trade campaign on social networks

Certain bloggers based in Canada, with support from the National Coalition Against Contraband Tobacco, communicated the dangers and negative consequences of contraband tobacco.

Visit one blogger's website here: Listentolena.com

ECUADOR (2016)

Fight against ‘Ant-Trading’

Ecuador’s National Customs Service launched an anti-illicit trade campaign to raise awareness about ‘Ant-Trading’, a system that involves hundreds of people repeatedly entering the country with small amounts of consumer goods with the intention of commercializing them, illegally avoiding taxation.

Visit the campaign’s Facebook page here

ECUADOR (2016)

Fight against ‘Ant-Trading’

Ecuador’s National Customs Service launched an anti-illicit trade campaign to raise awareness about ‘Ant-Trading’, a system that involves hundreds of people repeatedly entering the country with small amounts of consumer goods with the intention of commercializing them, illegally avoiding taxation.

Visit the campaign’s Facebook page here

UKRAINE (2016)

Smuggling cigarettes into the EU leads to criminal liability

Philip Morris Ukraine financed a billboard campaign to help raise awareness about criminal liability for smuggling cigarettes into Ukraine’s EU neighbors: Poland, Romania, Slovakia and Hungary. A total of 120 billboards were placed along roads in Western Ukraine where they would be visible to potential smugglers in the peak travel season between July and September.

See campaign video here

UKRAINE (2016)

Smuggling cigarettes into the EU leads to criminal liability

Philip Morris Ukraine financed a billboard campaign to help raise awareness about criminal liability for smuggling cigarettes into Ukraine’s EU neighbors: Poland, Romania, Slovakia and Hungary. A total of 120 billboards were placed along roads in Western Ukraine where they would be visible to potential smugglers in the peak travel season between July and September.

See campaign video here

We support law enforcement and authorities to find, track down, confiscate, and destroy illicit tobacco products.

Information sharing is an important aspect of this cooperation. For example, we share information gathered through the several research projects and investigative operations we conduct across the globe every year with the authorities.

Our Product Intelligence and Security team also provides technical trainings to law enforcement officers in several countries to help them improve their ability to perform preliminary assessment of the authenticity of products bearing our brands. To date, we have trained over 11 thousand law enforcement officers worldwide.

“Governments have the responsibility to enforce laws, change policy or otherwise act against the problem set. Industry, however, which has no authority to enforce illicit trade laws or change policy, is often the first to identify the problem and subsequently provide information in support of the solution. Industry can and does develop leads, and provides the information to governments.”

OECD (2016), Illicit Trade: Converging Criminal Networks, OECD Publishing, Paris.

We support law enforcement and authorities to find, track down, confiscate, and destroy illicit tobacco products.

Information sharing is an important aspect of this cooperation. For example, we share information gathered through the several research projects and investigative operations we conduct across the globe every year with the authorities.

Our Product Intelligence and Security team also provides technical trainings to law enforcement officers in several countries to help them improve their ability to perform preliminary assessment of the authenticity of products bearing our brands. To date, we have trained over 11 thousand law enforcement officers worldwide.

“Governments have the responsibility to enforce laws, change policy or otherwise act against the problem set. Industry, however, which has no authority to enforce illicit trade laws or change policy, is often the first to identify the problem and subsequently provide information in support of the solution. Industry can and does develop leads, and provides the information to governments.”

OECD (2016), Illicit Trade: Converging Criminal Networks, OECD Publishing, Paris.