Sicpa Product Security, a Swiss-based provider of integrated government security solutions on high excise tax products, was awarded a contract with the California State Board of Equalisation (BOE) to provide the state with a secure cigarette tax stamping system following a competitive bid process.

The new system builds upon the successful completion of Sicpa’s initial five-year cigarette tax stamp contract, which delivered more than five billion secure, encrypted tax stamps. Under the new agreement, Sicpa will provide an upgraded encrypted cigarette tax stamp with track and trace capabilities, hand-held portable readers for law enforcement, and customised management reports issued from a centralised data management server. Implementation is currently in progress with statewide system operation expected by May 2011.
In 2005, California became the first state in the US to move to an encrypted cigarette tax stamping platform to secure excise revenues and protect consumers and legitimate businesses from illicit products. Sicpa has operated the California system since its inception, and with great success. Earlier this year, the BOE concluded that the deployment of Sicpa’s tax stamp system, the Cigarette and Tobacco Licencing Act of 2003, and increased enforcement collectively have helped recover over USD 150 million (EUR 107 million) in annual revenues. (ci)