G/TBT/W/470  
27 March  2018 
(18-1907) Page: 1/2 
Committee on Technical Barriers to Trade  Original:  Spanish  
 
  
EUROPEAN UNION — THE ESTABLISHMENT AND OPERATION OF A TRACEABILITY 
SYSTEM FOR TOBACCO PRODUCTS  
STATEMENT BY CUBA TO THE COMMITTEE ON TECHNICAL BARRIERS TO TRADE  
21 AND 22 MARCH 2018  
The following communication, dated  27 March  2018, is being circulated at the request of the 
delegation of Cuba. 
 
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1.  Cuba appreciates the EU's reply, receiv ed via  the national focal point on 11 January , to the 
concerns Cuba had submitted on the draft Commission Implementing Regulation on technical 
standards for the establishment and operation of a traceability system for tobacco products 
(document G/TBT/N/EU/505 ). 
2.  We would also like to remind the EU that we are awaiting a reply to the comments that we 
submitted  on notification G/TBT/N/EU/507  through the national focal point . 
3.  In any event, o ur country wishes  to reiterate its concerns with respect to Articles 3.1, 8 and 
34 of this Directive . We must call your attention to the following elements , which we believe  would 
affect the marketing of handmade Cuban tobacco in the EU . 
4.  We consider that  the amendments to the draft Directive must take account of the particularities 
of the hand made cigar industry , as pledged by the EU delegation in the communication sent to our 
national focal point ( Ref. Ares (2018)182918 of 11 January  2018). 
5.  With respect to traceability, it is our opinion that this should require no more than the inclusion 
in the unique identifier of the factory where the cigars were produced  (Article 8). 
6.  Cigars are made "by hand" in different factor ies, and the units making  up a box or case may be 
made by different twisters during  different shifts, with each twister applying his or her  own sorting  
criteria . When the cigars are being produced,  information such as  the intended market of sale, the 
transport route from Cuba and the name of the importer that will market the product in the EU is  
all unknown . It would only be possible to include information on the factory th at produced the 
cigars  in the unique identifier , and not the remainder of the elements  listed in Article 8.1(c) . It 
would also be impossible to include information in the unique identifier in the format prescribed  
under Article 8.1(d). 
7.  We reiterate that there are particularities in the manufacture  of handmade cigars that 
distinguish the m considerably from the machine -made product . The new regulations imposed by 
the proposed legislation could end up limiting exports of handmade cigars  to the EU . In light of  
these particularities, Cuba suggests that there be flexibilities for handmade cigars . 
8.  With respect to Article 34 of the Directive, we request  that the time-frame for transm itting the 
required information – including on the dispatch of products from the factory and transport routes 
for cigars  produced by hand  – be extended  and that the report ing of  payments and invoices  be 
eliminated, as th at goes beyond the scope of the Directive . G/TBT/W/470  
- 2 - 
  9.  On that matter , it would be important  to ensure that the secondary legislation is aligned with 
familiar  procedures such as the EMCS ( Excise Movement and Control System ). A lack of such 
alignment  would mean  a duplication of existing information or, in the worst case, the existence of 
conflicting p rocedures . In addition, there is no value added in advance notification, which would 
just be an obstacle for logistics operators . 
10.  Regarding  Article 3.1 of notification G/TBT/N/EU/507, Cuba requests that the EU reconsider 
the need to require that the securi ty feature be composed of five authentication elements , as this 
entails  an excessive economic burden for our industry . 
11.  The solution we propose is that the proposal closely track the provisions of  Directiv e 
2014/40/EU , which require only one visible securit y element and one invisible  one; in other words , 
that the security feature be composed of only two authentication elements, one invisible and one 
visible , and not five,  as in the current proposal . 
12.  Furthermore , Cuba requests that it be po ssible to include the security elements on an 
adhesive label . Each member State is able to  select the security featur es that it deems suitable,  
and this makes it considerably more difficult to market Cuban cigars , given that the country where 
they will be marketed is unknow n at the time they are being produced by Cuban factories . In 
addition, not all EU member countries have tax stamps  for cigars ; being able to include the 
security features on an adhesive label would therefore contribute to compliance with the 
requirement in  countries that do not currently require a tax stamp  for the cigar  category . 
13.  Before concluding, we wish to emphasize  that Cuba understands the objective underlying the 
proposed legislation, which aims to combat the various types of fraudulent activities by  which illicit 
goods are made available to consumers, including practices involving false export declarations . It 
also understands the desire to guarantee the independence of the traceability system and its 
control by member States. However, as a developin g country with a small and vulnerable 
economy , we continue to have serious concerns regarding the impact that this legislation would 
have on Cuba's tobacco industry if it were to be implemented . 
14.  Consequently , we would like to ask the EU to apply Article 12 .3 of the TBT Agreement which 
provides that Members should, in the preparation of technical regulations, take account of the 
special development, financial and trade needs of developing countries so as to ensure that they 
do not create unnecessary obstacle s to exports from developing country Members . 
15.  This measure will create significant obstacles for our domestic industry if our concerns are not 
addressed . We hope that in conformity with Article 12.9 of the TBT Agreement, due account will be 
taken of the di fficulties that we are describ ing and the alternatives that we are proposing before 
this legislation is implemented . 
16.  Our delegati on would like to reiterate its openness  to maintain ing a dialogue with the EU on 
this matter so that an outcome can be achieved  that does not limit or restrict the presence of 
Cuban cigars on the EU  market . 
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