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

Largely feeling the effects of the recently resolved West Coast ports labor disruption, railroad and intermodal volumes in February were down annually, according to data released by the Association of American Railroads (AAR) this week.

The year 2015 marks a major milestone for the industry, MHI is celebrating its 70th anniversary at ProMat 2015, held March 23-26, 2015.

While the Federal Motor Carrier Safety Administration has made strides in regards to better oversight of motor carriers through its Compliance, Safety, Accountability (CSA) and chameleon vetting safety programs, there is room for improvement for it to improve its oversight to better target high-risk carriers. That was the thesis of a report released this week by the United States General Accountability Office

With an eye on capitalizing on future trade and commerce growth in South Asia, express delivery and logistics services provider DHL today rolled out its plans to build an $85 million EUR ($93 million USD) DHL Express South Asia Hub, which will be a 24-hour express hub facility within the Changi Airfreight Center at the Singapore Changi Airport.

While the Federal Railroad Administration (FRA) has long stated its goal of having Positive Train Control (PTC) technology installed on 40 percent of its network by December 31, 2015, railroad industry stakeholders have repeatedly stated that reaching that deadline would be a stretch. It now appears that the railroad sector has some members of Congress sharing the same line of thought with legislation rolled out this week that pledges to extend the PTC deadline to 2020.

Comments

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


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA