Chips to weed out fake cigarettes?

Cigarettes subject to UK duty are to carry a "covert security feature" intended to combat the problem of tobacco counterfeiting and smuggling.

The three members of the Tobacco Manufacturers Association (TMA) - British American Tobacco, Gallaher and Imperial - and Phillip Morris have been manufacturing cigarette packets with the security feature since 1 October.

The technology will allow customs staff to use small hand-held readers to authenticate cigarettes - leading to speculation that RFID tags are being used.

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A TMA spokesman told silicon.com: "We believe that it's going to create a barrier to prevent counterfeit products entering the legitimate retail network."

He explained that customs officers will be able to go into any retailer and "immediately authenticate whether the product is genuine or not".

An HM Revenue & Customs spokesman confirmed a covert security feature will be used but would not be drawn on the details of the technology. "It's a counterfeiting measure," he said. However, a report in The Times claimed the packets would incorporate RFID technology.

The TMA estimates it will take around a year for packets featuring the tags to hit UK shelves.

It's estimated that around three per cent of all cigarettes bought in the UK are counterfeit and that the government loses around £3.5bn in tax revenue per year through cigarettes being smuggled into the country from abroad.