Guidance

Tobacco track and trace penalties

Find out about the penalties that can be applied if you do not follow the UK tobacco track and trace rules.

• From: HM Revenue & Customs
• Published: 10 July 2023
• Last updated: 18 July 2023 — See all updates

You must follow the track and trace rules for tobacco products in the UK if you manufacture, import, transport, store, or sell tobacco products.

If you do not follow the rules, HMRC can take action.

If Trading Standards visit you

Trading Standards investigate unfair trading and illegal business activities. This includes the detection and removal of tobacco products that should not be available for sale. These are sometimes known as illicit tobacco products.

If they think you have broken the tobacco track and trace rules your information may be shared with HMRC.

HMRC will decide if the rules have been broken and contact you directly. They will let you know about any action to be taken.

If you do not meet tobacco track and trace requirements

Failure to meet the requirements of tobacco track and trace may mean:

• a penalty of up to £10,000 for holding products that do not meet the rules
• the seizure and potential destruction of tobacco products
• the deactivation of your economic operator ID, temporarily or permanently, where you persistently break the rules, restricting or removing your ability to purchase or sell tobacco in the UK

Find out more about when your economic operator ID may be deactivated.

Penalties that may be applied

The financial penalty amount will depend on whether this is a first or repeat offence and on the quantity of cigarettes or hand rolling tobacco held and found in breach of the tobacco track and trace rules.

First offence

Financial penalties can be applied up to:

• £2,500, where less than 100 packs are held
• £5,000, where 100 to 299 packs are held
• £7,500, where 300 to 499 packs are held
• £10,000, where 500 or more packs are held

Second offence

Financial penalties can be applied up to:

• £5,000, where less than 100 packs are held
• £7,500, where 100 to 299 packs are held
• £10,000, where 300 or more packs are held

Further offences

Financial penalties can be applied up to:

• £7,500, where less than 100 packs are held
• £10,000, where 100 or more packs are held

From a second offence onwards, HMRC may:

• seize and potentially destroy any tobacco products
• consider the temporary or permanent deactivation of an economic operator ID

How to pay a penalty

Find out how to pay taxes, penalties or enquiry settlements issued by HMRC.

How to appeal against a decision by HMRC

The decision letter from HMRC will tell you what to do if you disagree with the decision. Find out how to get a review of an HMRC decision.

Published 10 July 2023
Last updated 18 July 2023 + show all updates

1. 18 July 2023

   Added translation.

2. 10 July 2023

   First published.