These Regulations are made to address issues arising from the withdrawal of the UK from the European Union. These include matters arising out of, or related to, Part 3 (separation provisions) of, and the Protocol on Ireland/Northern Ireland (“the Protocol”) annexed to, the EU withdrawal agreement.

The Tobacco Products (Traceability and Security Features) Regulations 2019 (S.I. 2019/594) (“the 2019 Regulations”) were introduced to implement Article 15 (traceability), Article 16 (security feature) and Article 23 (enforcement) of Directive 2014/40/EU (“the Directive”). The technical standards for the EU traceability system and the EU security feature system are set out in Regulation 2018/574/EU and Decision 2018/576/EU, respectively. The 2019 Regulations, the retained EU Regulation and the retained EU Decision are all amended by these Regulations.

Part 1 makes introductory provision including, in regulation 1, where the effect provisions are set out.

Part 2 of the Regulations deals with retained EU law which deals with the majority of technical rules and standards for the traceability system and security feature system.

Regulation 3 applies the retained EU Regulation to the UK with amendments set out in Schedule 1. The retained EU Regulation is applied and amended for the purpose of setting out the technical standards for the UK traceability system with effect for tobacco products manufactured or imported into the UK on or after IP completion day. Regulations 4 and 5 make transitional provision requiring certain tobacco products manufactured before IP completion to be included in the scope of the UK traceability system. Regulation 6 saves all existing identifier codes and registers created for the purpose of the EU traceability system before IP completion day, and ensure the codes and registers are recognised for the purposes of the UK traceability system from IP completion day.

Regulation 7 and Schedule 2 make amendments to the retained EU Decision for the purpose of setting out the technical standards of security features to be applied to products supplied in Great Britain.

Part 3 deals with amendments to the 2019 Regulations and makes related saving provisions for the purposes of the Protocol.

Regulation 8 saves the 2019 Regulations as they have effect immediately before IP completion day to take account of the inclusion of Directive 2014/40/EU in Annex 2 to the Protocol. The saving ensures the continued implementation and enforcement of Article 15 (traceability) after IP completion day and the continued operation of the EU traceability system for the purposes of the Protocol. Regulation 9 excludes Part 4 and some of Part 5 from the Protocol saving. These Parts deal with the security features scheme. Separate provision is made in relation to those Parts for the purposes of the Protocol by regulation 10.

Regulation 10 of, and Schedule 3 to, these Regulations amend Parts 4 and 5 of the 2019 Regulations to take account of the inclusion of Directive 2014/40/EU in Annex 2 to the Protocol. The amendments ensure the continued implementation and enforcement of Article 16 (security feature) for the purposes of the Protocol.

In addition to that purpose, Regulation 10 of, and Schedule 3 to, these Regulations also amend the 2019 Regulations to ensure they continue to function effectively after IP completion day in providing for a UK-wide traceability system and a security feature system which covers tobacco product supplied in Great Britain.

Regulation 11 makes transitional provision in relation to tobacco products that are compliant with the EU traceability scheme before IP completion day (and referred to in Part 2) and supplied in the UK after IP completion day. Regulation 12 ensures notices given by HMRC before IP completion day in relation to the application of security features on tobacco products supplied in the UK continue to have effect in relation to tobacco products supplied in Great Britain after IP completion day.

Part 4 makes consequential amendments to the Standardised Packaging of Tobacco Products Regulations 2015 (S.I. 2015/829) to update references in those Regulations to legislation imposing marking requirements for the purposes of the UK traceability system and the EU traceability system.

A Tax Information and Impact Note covering this instrument will be published on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.