Chile’s Tobacco Traceability System Uncovers Illicit Production in Santiago

Chile’s fiscal traceability system on tobacco products (SITRAF) has been instrumental in allowing the Chilean tax authority, Servicio de Impuestos Internos (SII) to identify a company that has been illegally manufacturing cigarettes in the country.

Carolina Saravia, Deputy Director of Inspection, SII, and officials involved in joint investigation.

The resulting legal complaint filed by SII marks the first time that the manufacture of illegal cigarettes was interrupted as a result of initial information supplied by an installed tax stamp and traceability system.

The culprit was identified as Tabacos del Futuro SPA, a company with a formal production system operating within the industry. As an officially authorised producer of two cigarette types under the TEXAS retail brand, Tabacos del Futuro had a working SITRAF system installed on its production line to allow SII to monitor production and subsequent taxes payable, prior to the distribution of finished cigarettes to points of sale.