Text proposed by the Commission Amendment

1. Member States shall ensure that all unit packets of tobacco products shall be marked with a unique identifier. In order to ensure their integrity, unique identifiers shall be irremovably printed/affixed, indelible and in no way hidden or interrupted in any form, including through tax stamps and price marks, or by the opening of the packet. In relation to products manufactured outside the Union the obligations laid down in this Article apply only to those destined to or placed on the Union market. 1. Member States shall ensure that all unit packets and any outside transport packaging of tobacco products shall be marked with a unique identifier with the aim to trace the products through the whole supply chain . In order to ensure their integrity, unique identifiers shall be secure, irremovably printed/affixed, indelible and in no way hidden or interrupted in any form, including through tax stamps and price marks, or by the opening of the packet. In relation to products manufactured outside the Union the obligations laid down in this Article apply only to those destined to or placed on the Union market.

1a. Member States shall ensure that the unique identifiers of unit packets are linked to the unique identifier on the outside transport packaging. Any changes in links between unit packs and the outside transport packaging shall be recorded in the database mentioned in paragraph 6.

2. The unique identifier shall allow determining: 2. The unique identifier shall allow determining:

(a) the date and place of manufacturing; (a) the date and place of manufacturing;

(b) the manufacturing facility; (b) the manufacturing facility;

(c) the machine used to manufacture the products; (c) the machine used to manufacture the products;

(d) the production shift or time of manufacture; (d) the production shift or time of manufacture;

(e) the product name ; (e) the product description ;

(f) the intended market of retail sale; (f) the intended market of retail sale;

(g) the intended shipment route; (g) the intended and actual shipment route from the place of manufacturing to the first retail outlet, including all warehouses used, the shipment date, shipment destination, consignee and point of departure;

(h) where applicable, the importer into the Union; (h) where applicable, the importer into the Union;

(i) the actual shipment route from manufacturing to the first retail outlet, including all warehouses used;

(j) the identity of all purchasers from manufacturing to the first retail outlet; (j) the identity of all purchasers from manufacturing to the first retail outlet;

(k) the invoice, order number and payment records of all purchasers from manufacturing to the first retail outlet. (k) the invoice, order number and payment records of all purchasers from manufacturing to the first retail outlet.

3. Member States shall ensure that all economic operators involved in the trade of tobacco products from the manufacturer to the last economic operator before the first retail outlet, record the entry of all unit packets into their possession, as well as all intermediate movements and the final exit from their possession. This obligation can be fulfilled by recording in aggregated form, e.g. of outside packaging, provided that tracking and tracing of unit packets remains possible . 3. Member States shall ensure that all economic operators involved in the trade of tobacco products from the manufacturer to the last economic operator before the first retail outlet, record the entry of all unit and outside packets into their possession, as well as all intermediate movements and the final exit from their possession , and transmit the data electronically to a data storage facility pursuant to paragraph 6 . This obligation can be fulfilled by recording in aggregated form, e.g. of outside packaging.

3a. The technology used for tracking and tracing should belong to and be operated by economic entities without any legal or commercial link to the tobacco industry.

4. Member States shall ensure that manufacturers of tobacco products provide all economic operators involved in the trade of tobacco products from the manufacturer to the last economic operator before the first retail outlet, including importers, warehouses and transporting companies with the necessary equipment allowing for the recording of the tobacco products purchased, sold, stored, transported or otherwise handled. The equipment shall be able to read and transmit the data electronically to a data storage facility pursuant to paragraph 6. 4. Member States shall ensure that manufacturers of tobacco products provide all economic operators involved in the trade of tobacco products from the manufacturer to the last economic operator before the first retail outlet, including importers, warehouses and transporting companies with the necessary equipment , as determined by those Member States, allowing for the recording of the tobacco products purchased, sold, stored, transported or otherwise handled. The equipment shall be able to read and transmit the data electronically to a data storage facility pursuant to paragraph 6.

5. Recorded data cannot be modified or deleted by any economic operator involved in the trade of tobacco products, but the economic operator that introduced the data and other economic operators directly concerned by the transaction such as the supplier or the recipient can comment on previously introduced data. The economic operator concerned shall add the correct data and a reference to the previous entry which requires rectification in their view. In exceptional circumstances and upon submission of adequate evidence, the competent authority in the Member State in which the recording took place or if the recording took place outside the Union the competent authority in the Member State of importation, can authorise the modification or deletion of data previously registered. 5. Recorded data cannot be modified or deleted by any economic operator involved in the trade of tobacco products, but the economic operator that introduced the data and other economic operators directly concerned by the transaction such as the supplier or the recipient can comment on previously introduced data. The economic operator concerned shall add the correct data and a reference to the previous entry which requires rectification in their view. In exceptional circumstances and upon submission of adequate evidence, the competent authority in the Member State in which the recording took place or if the recording took place outside the Union the competent authority in the Member State of importation, can authorise the modification or deletion of data previously registered.

6. Member States shall ensure that manufacturers and importers of tobacco products conclude data storage contracts with an independent third party, which shall host the data storage facility for data relating to the manufacturer and importer concerned. The data storage facility shall be physically located on the territory of the Union. The suitability of the third party, in particular its independence and technical capacities, as well as the contract, shall be approved and monitored by an external auditor, who is proposed and paid by the tobacco manufacturer and approved by the Commission. Member States shall ensure full transparency and accessibility of the data storage facilities for the competent authorities of the Member States, the Commission and the independent third party on a permanent basis. In duly justified cases Member States or the Commission can provide manufacturers or importers access to this information, provided commercially sensitive information remains adequately protected in conformity with the relevant national and Union legislations. 6. Member States shall verify that manufacturers and importers of tobacco products conclude data storage contracts with an independent third party which shall host the data storage facility for data relating to the manufacturer and importer concerned. The data storage facility shall be physically located on the territory of the Union. The independent third party shall be free from commercial and other vested interests of the tobacco industry and other related industries. The suitability of the third party, in particular its independence and technical capacities, as well as the contract, shall be approved and monitored by the Commission, assisted by an independent external auditor, who is paid by the tobacco manufacturer and approved by the Commission. Member States shall ensure full transparency and accessibility of the data storage facilities for the competent authorities of the Member States, the Commission and the independent third party on a permanent basis. In duly justified cases Member States or the Commission can provide manufacturers or importers access to this information, provided commercially sensitive information remains adequately protected in conformity with the relevant national and Union legislations.

7. Member States shall ensure that personal data are only processed in accordance with the rules and safeguards laid down in Directive 95/46/EC. 7. Member States shall ensure that personal data are only processed in accordance with the rules and safeguards laid down in Directive 95/46/EC.

8. In addition to the unique identifier, Member States shall require that all unit packets of tobacco products which are placed on the market carry a visible, tamper proof security feature of at least 1 cm2, which shall be irremovably printed or affixed, indelible and in no way hidden or interrupted in any form, including through tax stamps and price marks, or other elements mandated by legislation. 8. In addition to the unique identifier, Member States shall require that all unit packets of tobacco products which are placed on the market carry a visible and invisible , tamper proof security feature of at least 1 cm2, which shall be irremovably printed or affixed, indelible and in no way hidden or interrupted in any form, including through tax stamps and price marks, or other elements mandated by legislation. In those Member States where tax stamps are applied on tobacco products and the tax stamps applied comply with the requirements of this paragraph, no additional security feature is required.

9. The Commission shall be empowered to adopt delegated acts in accordance with Article 22: 9. Taking into consideration the practices, technologies and existing commercial operating aspects, as well as global standards of tracking, tracing and authentication of consumer goods and the corresponding requirements set by the WHO Protocol on Illicit Trade of Tobacco Products, the Commission shall be empowered to adopt delegated acts in accordance with Article 22:

(a) to define the key elements (such as duration, renewability, expertise required, confidentiality) of the contract referred to in paragraph 6, including its regular monitoring and evaluation; (a) to define the key elements (such as duration, renewability, expertise required, confidentiality) of the contract referred to in paragraph 6, including its regular monitoring and evaluation;

(b) to define the technical standards to ensure that the systems used for the unique identifiers and the related functions are fully compatible with each other across the Union and (b) to define the technical standards to ensure that the systems used for the unique identifiers and the related functions are fully compatible with each other across the Union and in line with international standards.

(c) to define the technical standards for the security feature and their possible rotation and to adapt them to scientific, market and technical development.