EU proposes regulation on key elements of data storage contracts to be concluded as part of a traceability system for tobacco products European Commission proposes delegated regulation defines key elements of the data storage contracts to be concluded by manufacturers and importers of tobacco products, in the context of the EU-wide traceability system for tobacco products. Directive 2014/40/EU of the European Parliament and of the Council of 3 April 2014 on the approximation of the laws, regulations and administrative provisions of the Member States concerning the manufacture, presentation and sale of tobacco and related products and repealing Directive 2001/37/EC provides, in its Article 15, for the establishment of a traceability system for tobacco products according to which all unit packets of tobacco products produced in, destined for or placed on the EU market are to be marked with a unique identifier and their movements tracked and traced throughout the supply chain (from the manufacturer until the last level before the retail outlet). The provisions of Article 15 shall apply to cigarettes and roll-your-own tobacco products from 20 May 2019 and to all other tobacco products from 20 May 2024. Article 15(8) of Directive 2014/40/EU requires manufacturers and importers of tobacco products to conclude data storage contracts with an independent third party, for the purposes of hosting the data storage facility for all relevant data recorded pursuant to that Article. Article 15(8) further sets out that the suitability of the third party, in particular its independence and technical capacities, as well as the data storage contract, shall be approved by the Commission. Article 15(12) of Directive 2014/40/EU empowers the Commission to adopt delegated acts to define the key elements of the data storage contracts referred to above. The Commission is seeking to fulfil this obligation via the current draft Delegated Regulation. The current draft Commission Delegated Regulation should be read in conjunction with draft Commission Implementing Regulation on technical standards for the establishment and operation of a traceability system for tobacco products, as well as draft Commission Implementing Decision on technical standards for security features applied to tobacco products. These have been notified to the WTO at the same time as the current draft. Products covered: Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes. (HS 2402), Other manufactured tobacco and manufactured tobacco substitutes; "homogenised" or "reconstituted" tobacco; tobacco extracts and essences. HS Code: 2402, 2403 Proposed date of adoption: December 2017 Proposed date of entry into force: As provided under Article 27 of Directive 2014/40/EU a delegated act adopted pursuant to Article 15(12) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council. (The provisions shall apply from 20 May 2019 to cigarettes and roll-your-own tobacco products and from 20 May 2024 for all other tobacco products). Final date for comments: 60 days from notification | 
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