Annual report 2010 - Imperial Tobacco Group

Operating responsibly, combined with our proactiveapproach to tackling illicit trade and regulatoryengagement, is critical to our long-term successEU co-operation agreementIn September we signed an anti-illicittrade co-operation agreement withthe European Commission and theMember States of the EuropeanUnion. We initiated this agreement tostrengthen our joint efforts to combatthe illegal trade in tobacco.Under the agreement we willwork together with the EuropeanCommission and the law enforcementauthorities of the Member States totackle the smuggling and counterfeitingof tobacco products. The agreementwill strengthen co-operation in anumber of areas and includespayments by us of £191 million(US$300 million) over 20 years tofund anti-illicit trade initiatives.The agreement underlines ourcommitment to partner withauthorities worldwide in the fightagainst tobacco smuggling andcounterfeiting.We encourage governmentsand regulators to take into accountthe issues surrounding illicit tradewhen regulating tobacco. We areparticularly concerned aboutproposals under discussion by theauthorities in some markets whichwould require all tobacco productsto be made available in the sameplain packaging. This would lead toa considerable increase in counterfeittobacco which would significantlyundermine our joint anti-illicittrade activities.We apply stringent controls to ourglobal network of distributors andhave a dedicated team of specialistswho operate internationally inconjunction with governments andcustoms and excise authorities on aglobal scale to disrupt the manufactureand supply of illicit tobacco products.1Anti-illicit training in PolandDuring 2010, a training course washeld in Kraków by Imperial Tobaccoto help customs officers tacklecigarette smuggling in Poland.The course was conducted byexperts from Imperial Tobacco Polandand was attended by around 50customs officers.Attendees were shown the scaleand sources of tobacco productssmuggled into the country andthe methods of identifying legaland illicit products.We actively support customs authoritiesin the fight against criminal practices inthe tobacco market.The course in Kraków was the latestin a series of initiatives we havedeveloped with customs authoritiesin a number of markets.Supporting tobacco farmersin MalawiImperial Tobacco is helping toprotect endangered woodlandin southeast Africa.Up to 14 per cent of Malawi’s forestshave been lost due to tree fellingfor fuel, charcoal production andsubsistence as well as commercialagriculture.We support a project to increase treeand bamboo cultivation through theEliminating Child Labour in Tobacco(ECLT) Foundation.We contribute to the scheme asa board member of the ECLT andhave provided additional funds to itspartners Total Land Care to furtherdevelop the project.21. In September, we signed an anti-illicittrade co-operation agreement with theEuropean Commission and the MemberStates of the European Union.2. We continue to support tobacco farmersin Malawi.