Subscribe to our free, weekly email newsletter!


Xerox Helps States Stamp Out Tobacco Tax Fraud

New holographic stamp and Xerox tracking technology help protect states from tax losses due to counterfeit tobacco stamps
By Patrick Burnson, Executive Editor
April 16, 2012

The Department of Justice estimates that state governments lose $5 billion a year due to cigarette smuggling. As taxes on tobacco products steadily increase in most states, counterfeit tax stamps have become more and more common. Many states are still using 50 year old, heat-applied, wax-based cigarette tax stamps which are limited in security and do not readily support digital signatures.

To help stamp out tobacco tax fraud, Xerox is deploying a Secure Intelligent Tax Tag (SecureITT) – a pressure stamp with a unique, protected holographic imprint created by OpSec Security Inc. (OpSec), a company specializing in anti-counterfeiting technology.

According to spokesmen, SecureITT is the only tax stamp solution that combines physical stamp characteristics, electronic security features and digital reporting data with Xerox’s eTRACS (Electronic Tax Reporting and Audit Compliance System) tracking software.

Craig Galler, Director of Business Development at Xerox, told Supply Chain Management Review—a sister publication, that there are considerable reverse logistics implications, too.

“With the installation of our SecureITT / eTRACS solution, the wholesaler will be able to scan the product when it is returned – either back into inventory (if it can be re-distributed) or to create an automatic inventory adjustment to be reported electronically to the state,” he said. “This process ensures credits are accurately tracked and processed between the state and the wholesaler.”

Xerox’s tax stamp solution goes beyond what current stamp solutions can offer by enabling secure data access without the use of proprietary hardware devices, added Galler.

“And while state authorities are the only ones authorized to access certain restricted data on the SecureITT stamp, anyone with a smartphone or laptop can report basic tracking information to authorities no matter where the tobacco products end up.”

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

While it feels somewhat hard to fathom, the stage is set for the Council of Supply Chain Management Professionals (CSCMP) Annual Conference in San Antonio, Texas.

Carload volumes were up 1.4 percent at 300,388, and intermodal volume for the week ending September 13 was up 5 percent at 279,052 trailers and containers.

Company says the Cloud offering allows customers to respond more quickly to new business opportunities, without significant upfront cost and implementation times.

As e-commerce continues to take a bigger piece of the holiday package delivery pie, it stands to reason that companies need to be proactive and prepared in order to deliver premium service during the busiest time of year, which is rapidly approaching. And that is exactly what transportation giants UPS and FedEx are doing this year. How are they doing it exactly? The primary step they are taking is to up their numbers of seasonal staffers.

A recent hearing of the Subcommittee on Coast Guard and Maritime Transportation suggests that the U.S. Merchant Marine industry may be poised for a major comeback.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA