In August 2004, the state of California selected Swiss product security powerhouse SICPA and Meyercord Revenue to implement and operate a legislatively-enabled secure tax stamp solution for a period of five years. SICPA chose Form 10 Group as its subcontract partner to perform a variety of tasks pursuant to this first-in-the-nation intitiative. The new tax collection system and production of the tobacco tax stamp started early in 2005. The stamps are printed and encrypted with a tracing code unique to each cigarette pack.
Once the stamp is applied to the pack, a reading device records this information in a centralized data management system managed by SICPA on behalf of the state. State authorities are then able to receive reports on stamp ordering and application activities that allow them to pursue more active investigations. Law enforcement field agents and state investigators are equipped with hand-held readers to ensure effective enforcement of the tax recovery program. In 2010, the system was renewed by California and is still in place.
Project
California Cigarette Tax Enforcement
Client
SICPA
Form 10 Roles
Deployment, Field Service, Training
Supporting a project of this magnitude,
Not to mention geographic footprint,
Has demanded a resourceful and creative approach.
Form 10’s relationship with SICPA in support of this and other projects has now entered its fourteenth year of uninterrupted service and has included equipment installation, user training, hardware and software updates, field service and depot equipment repair, and customer service for both industry users and state investigative and administrative personnel. Today, 100 percent of the cigarette packs commercialized in California carry the secure, track-and-trace tax stamp and this system continues to protect hundreds of millions of dollars of excise tax revenue for California and significantly reduce criminal activity in the cigarette realm within California.
