Guam Launches Tobacco Stamps – Nine Years After They Came Into Law

Nearly a decade after legislation was first enacted, the US island territory of Guam has begun implementing a tax stamp programme on cigarettes and other tobacco products.

The Department of Revenue and Taxation (DRT) recently confirmed the programme’s formal launch in collaboration with the island’s four licensed cigarette wholesalers. While DRT will provide the blue, heat-transfer stamps to each wholesaler, it is the wholesalers’ responsibility to affix them to the base of every pack using their own in-house stamping machines.

It is notable that Guam selected heat-transfer tax stamps, even though pressure-sensitive stamps and label-applicator technology were also available options. By choosing the heat-transfer format, Guam aligns with approximately 43 US state programmes operating on the mainland, signalling a considered decision to use a proven and secure stamping technology.

Heat-transfer stamps offer advantages with regard to both cost and security. The specialised inks and frangible substrate used in their construction make them highly resistant to counterfeiting and extremely difficult to remove or reuse once applied.