SICPA SA: long-time trusted partner of governments, central banks, high-security border printers

SICPA SA: long-trusted partner to governments, central banks, high security printers across boundaries

Ever since SICPA SA came to Nigeria, the company is steady! Being in business can be so overwhelming at the best of times that it can be a sad challenge to get the aesthetic distance for a company to literally engage in the right sex with services and its client.

SICPA is not new to Nigeria. In 1987, the company signed a memorandum of understanding (MoU) with the Nigerian Security Printing & Minting (NSPM). This was followed by a Shareholders’ Agreement signed between NSPM and SICPA Holding in 1990 which led to the creation of a joint venture, which culminated in Tawada Limited, with NSPM holding 60 percent of the equity and SICPA 40 percent. Tawada which started its operation in 1997 is located in Abuja.

Tawada manufactures all the security inks used to print Naira currency. Certain raw materials are now sourced locally, after SICPA validation, and a technology transfer program is being implemented that aims to increase the local content of the security inks produced.

Among the companies that came to the country before, SICPA has already won pips of high recognition within the comity of companies even with a title of regularity and consistency in its name. The company shows the method of depositing the best that reveals the full conviction of passionate intensity.

In looking at what SICPA is doing in Nigeria, one should keep in mind the company’s description of the market leader in security inks and leading provider of secure authentication, identification, tracking, and supply chain solutions. SICPA is a long-standing trusted partner of governments, central banks, high-security printers, and industry around the world. Every day, governments, companies, and millions of citizens rely on its expertise, which combines material-based stealth features and digital technology, to protect the integrity and value of their money, personal identity , value documents, e-government services, as well as as products and brands.

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True to its mission of enabling trust through constant innovation, SICPA Seeks to sustain a global trust economy, where transactions, interactions, and products across the physical and digital world are based on protected, unforgettable, and verifiable data.

Founded in Lausanne in 1927, headquartered in Switzerland, and operating on five continents, SICPA employs about 3000 people.

With more than 70 active customers worldwide and more than 3 billion products branded and protected with brand protection solutions, SICPA has proven experience in the effectiveness of its solutions.

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Currently, there are many references and testimonials highlighting the positive impact observed by fiscal administrations and customs authorities in different countries in addition to the implementation of SICPA’s revenue mobilization solutions for products subject to excise tax, value-added tax (VAT), and other duties. Also, there are submissions to international organizations such as the World Bank, International Monetary Fund (IMF), United Nations (UN), international publications, local economic press, and directly to the government authorities of different countries. to prove the company’s ability.

In addition to country-specific certifications, various major international institutions have endorsed SICPA’s Track & Trace solutions. For example, a 2021 report from The World Bank includes several case-studies from various countries that have implemented SICPA solutions, including Kenya, Ecuador, and Georgia.

The federal government made the decision not only because SICPA SA has the necessary skills, capabilities, and experience but also because it has the financial resources to effectively implement the necessary solution to ensure the realization of the results which was outlined at the start of the initiative.

The company has a proven track record and expertise demonstrated through the successful implementation and completion of similar projects in 40 government authorities around the world, including African countries such as Morocco, Tanzania, Kenya, Uganda, and Togo.

International and global institutions such as the World Bank, IMF, and World Customs Organization have recognized SICPA’s Track and Trace Solutions as an instrument to strengthen domestic revenue mobilization and combat illegal trade.

Kenya said: “In Kenya, a Swiss company, SICPA, won the tender. The implementation of the Excisable Goods Management System (EGMS) has become cheaper than the cost of the previous system. The implementation of EGMS led to an increase in tobacco tax revenue. Overall, tax compliance in 2014 expanded by 45 percent, while costs decreased… In fiscal year 2016/17, excise tax revenue on beer and tobacco grew by 13.3 percent, while excise revenue tax on spirits grew by 22.7 percent. The Kenya Revenue Authority (KRA) attributes this growth to improved compliance. The IMF also commended Kenya for implementing the EGMS.

In Africa, Kenya, for example, won praise for its EGMS – initially focused on alcoholic beverages and cigarettes, cutting-edge tax stamps later extended to bottled water and other beverages – which helped improving excise collection…Since the introduction of the EGMS scheme, KRA has shut down hundreds of illegal producers, resulting in more than 800 prosecutions.

“The first round of alcoholic beverages and cigarettes, in 2013, was very successful. We registered significant income protection and increased our tax and it became necessary for us to implement the remaining products-bottled water, juices, energy drinks, soda, and other non-alcoholic beverages, which arrived on November 13, 2019. So So far, that implementation has had positive results and in the first three months of implementation, revenue has grown by an average of 11 percent…

It is indicated above that the Kenyan authority has a running contract with SICPA SA for the implementation of the SICPATRACE system (EGMS), with the company delivering the contractual obligations. The company does that by providing a system that meets the objectives and requirements set by the Kenya revenue authority.

Tanzania has also increased its alcohol management after implementing the Electronic Tax Stamps (ETS) system in January 2019. The scheme has played an important role in curbing the proliferation of counterfeit products in the Tanzanian market and has brought significant revenue to taxes. Just three months after the scheme was set up, Tanzanian tax officials estimate that the ETS system is helping them recover about $1.7 million a month…Over the course of the last financial year, the scheme boosted tax revenue to an impressive 34 percent, prompting Dar es Salaam to launch the system for bottled water and soft drinks as well.

According to the Uganda Revenue Authority (URA), “last year, URA’s enforcement operations around the implementation of the Digital Tracking Solution (DTS) earned a total of over UGX 3 billion in revenue as a result of netting 21 DTS flouters who were caught manufacturing, selling, exporting or distributing gazetted goods without the tax stamps,” revealed Ian Rumanyika (Public & Corporate Affairs Manager of URA). The digital tax stamp is a mark affixed to gazetted products to uniquely track and trace them in the market…

In Morocco: “Aware of the need to adopt less intrusive and more efficient control methods, and to optimize the way it moves (human and material) while improving its results, the Administration of Customs and Indirect Taxes (ADII) has been involved for several years in a process of changing the control of production and importation of certain goods under the internal consumption tax (TIC), in particular, manufactured tobacco, alcoholic and non- alcoholic beverages. This performance concern was created in 2010 by adopting a unified and secure tax marking system provided and installed by an operator selected after an international call for tenders , which makes it possible to reduce the personnel allocated to control, in terms of TIC, while improving the financial yield of these taxes, as well as the fight against fraud fraud and smuggling… It is in this context that, on October 22, 2019, the Customs Administration and the selected service provider SICPA SA signed a new agreement that provides for investments and innovative features.”

As stated by the Turkish Revenue Authority: “TURKTRACE® (nb. former name of BÜIS system) annually covers about 5.7 billion tobacco banderols, 1.6 billion beer codes, and 200 million alcohol banderols.66 Since TURKTRACE® became operational in July 2007, the revenue from the Turkish Special Consumption Tax increased to USD 1.8 billion on tobacco products and USD 200 million on alcoholic beverages. The government’s estimated budget for excise revenues from tobacco and alcoholic products increased and 85 percent in 2007 and 94 percent in 2010.”

“In Georgia, seven companies submitted proposals for the Integrated System of Movement and Registration of Products, and in the end, the contract was awarded to SICPA, a company based in Switzerland. The Georgia Revenue Service is currently satisfied with its performance. Georgia has been able to reduce tax evasion through various administrative measures.”

According to the Ecuadorian Authority: “Since March 2017, the Internal Revenue Service (SRI) has applied the Identification, Marking, Authentication, Tracking and Tax Tracking System (SIMAR) for domestic cigarettes, beer, and alcoholic beverages, “to reduce the accessibility and affordability of tobacco products, as well as to protect public revenues”. The World Health Organization admitted that SIMAR “has become an example for other countries in the region”. The main objective of SIMAR is to maintain greater control over excise payments and combat tax evasion.It also seeks to detect products of dubious origin.

According to the Albanian authorities: “In December 2010, the Albanian Council of Ministers decided to introduce a national track and trace system for all tobacco and alcohol products (including beer) as well as medicines, both produced in Albania and from abroad. The full deployment of the adopted system, based on the SICPATRACE® platform, was completed in October 2011. After the introduction of the track and trace system, more than USD 2 million in additional revenue in fines and recovered excise taxes was collected. In addition, from March 2012 to December 2012, local beer production increased by 50 percent compared to the same period in 2011.

The same thing, the modernization of tax and customs administration to improve revenue collection, applies to other countries and states, including California, Niger, and the Philippines.


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