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HMRC Vaping Duty Stamps Scheme

HM Revenue & Customs

This public procurement record has 6 releases in its history.

AwardUpdate

20 May 2026 at 08:16

UK7 - Contract Details Notice
Award

10 Feb 2026 at 10:04

UK7 - Contract Details Notice
Award

09 Jan 2026 at 10:53

UK6 - Contract Award Notice
Tender

29 Jul 2025 at 16:48

UK4 - Tender Notice
Planning

17 Jun 2025 at 17:09

UK2 - Preliminary Market Engagement Notice
Planning

10 Jun 2025 at 08:18

UK3 - Planned Procurement Notice
Summary of the contracting process

HM Revenue & Customs (HMRC) has recently completed the award stage of a tender process for the "HMRC Vaping Duty Stamps Scheme," which is set to support the implementation of the Vaping Products Duty being introduced from October 2026. The procurement, under a competitive flexible procedure, concluded with the selection of CARTOR SECURITY PRINTERS LIMITED as the supplier, facilitating a five-year contract with an optional extension of one year. This contract, valued at £32 million (excluding VAT), covers services in the stamps and printing industry category, with deliveries being managed across the UK. The contract officially commenced on 4 February 2026, with the Supplier responsible for delivering both the physical products and an integrated digital system for traceability and data collection.

This tender presents significant business growth opportunities for companies specialized in secure printing and supply chain technology. Small and medium enterprises (SMEs) with expertise in delivering high-volume secure products and data platforms are well-positioned to benefit from this contract due to the technical demands and the financial scale of the project. Businesses involved in supply chain logistics or those offering ancillary services such as digital compliance and reporting enhancements could find new avenues for collaboration and innovation with HMRC, especially through the optional services outlined in the contract, which aim to adapt to advancing compliance and technology requirements.

How relevant is this notice?

Notice Information

Notice Title

HMRC Vaping Duty Stamps Scheme

Notice Description

At Autumn Budget 2024, the Government confirmed Vaping Products Duty (VPD) would be introduced from 1 October 2026. Following further technical consultation, the Government announced a Vaping Duty Stamps Scheme (VDS) to be implemented alongside the VPD. The response to the consultation is available on GOV.UK. HM Revenue & Customs (HMRC) has conducted a competitive flexible procurement exercise to appoint a Vaping Duty Stamp supplier via a concession contract. The duration of the contract will be 5 years with an optional one (1) year extension period at the sole discretion of the Authority. The estimated total contract value (inclusive of any options) is PS32 million (excluding VAT). This value has been calculated based on the indicative volumes provided within the Specification and using existing information on stamp duty costs, including engagement with International Tax Stamp Association (ITSA). The Authority anticipates that a third of the contract value is associated with delivery charges, which are a non-profitable element of the contract. This assumption is based on average delivery costs of UK postal providers, for National, European and International mail. The Supplier will support the implementation of the Vaping Duty Stamp (VDS) Scheme. Under the scheme, businesses will purchase duty stamps directly from the appointed Supplier. The stamp will be a physical product incorporating digital features for traceability and authentication and will also capture data; including information about the manufacturer or business who affixes the stamp, product details and product journey through the supply chain. The scheme will be managed by the appointed Supplier, who will be responsible for production and supply, as well as providing the system for businesses to order, make payment, manage their stamps and collect data for HMRC relating to vaping products and the journey through the supply chain. The stamp must be applied before the product is released for consumption, and associated data will be recorded in the Supplier's system.

Lot Information

Lot 1

Options: The following optional services have been identified, allowing HMRC to adapt the system as policy or operational needs evolve, anticipating future developments in compliance, enforcement or technology; - Decoupling Digital Elements from the Physical Stamp; To support innovation in digital compliance. - Expansion of Scanning Events; To enhance traceability, support enforcement and improve data across the supply chain. - Reporting; New or modified reports accessible via the graphical interface. - Alerts; New or modified alerts triggered by changes to HMRC defined 'events of interest'. Optional services are defined as services that are not part of the core deliverables and will only be implemented at HMRC' s discretion, subject to the appropriate contract modification process, and in-line with Procurement Act 2023.

Renewal: The duration of the contract will be 5-years with an optional 1-year extension period at the sole discretion of the Authority.

Planning Information

The purpose of this preliminary market engagement notice is to: a) Provide notice that HMRC is seeking to undertake formal market engagement for the VDS requirement; b) Summarise any market engagement undertaken to date; and c) Invite potential providers to register for the upcoming market engagement exercise through HMRC's eSourcing system. Market engagement undertaken to date: HMRC undertook informal market engagement in August / September 2024 to explore the capabilities of the market and options for designing and delivering a duty stamps scheme to meet HMRC's objectives, including the time required for mobilisation. Further engagement was also undertaken in February 2025 as part of the policy consultation process (https://www.gov.uk/government/consultations/vaping-products-duty-consultation). These exercises helped HMRC consider how duty stamps are used globally, available market technology, potential delivery models and timescales. Businesses were also informed that HMRC were considering duty stamps as a compliance tool. Market engagement objectives: HMRC intends to conduct a short additional formal market engagement exercise. The objectives of this market engagement are to: a) Request information from the market on the indicative VDS requirements and proposed commercial approach; and b) Provide the opportunity for the market to raise any clarifications ahead of the formal tender process launching. Market engagement activities and timescales: The market engagement exercise will be undertaken through launching a Request for Information (RFI) to gain further market insight on the indicative requirements and proposed procurement approach. The RFI will open from 17/06/2025 and close at 12pm on 7/07/2025. Interested participants should register with HMRC's eSourcing tool (Ariba), using the below instructions. Once registered, participants will be able to access a supporting information document, providing further information on the outline VDS requirements and proposed procurement, and the RFI questions. There will also be the ability to seek clarifications via the messaging tool. We endeavour to answer questions as promptly as possible. Furthermore, we intend to hold a virtual "RFI information session" at 2:30pm on 24/06/2025 via MS Teams to provide a verbal overview of the VDS requirements, RFI objectives and answer any questions. Please indicate your interest in attending this session upon completing your registration to Ariba and joining instructions will be shared in advance of the session. Registration process: Market engagement will be conducted through HMRC's SAP Ariba e-Sourcing portal. You must ensure you are registered with the e-Sourcing portal to gain access to the RFI documentation. If you are not already registered, use our supplier self-registration request form to register: http://hmrc.sourcing-eu.ariba.com/ad/selfRegistration As part of the registration process you will receive a system generated email asking you to activate your SAP Ariba supplier account by verifying your email address. Once you have completed the activation process you will receive a further email confirming the 'registration process is now complete' and providing you with 'your organisation's account ID' number. If an email response from HMRC is not received within one working day of your request, please re-contact; sapariba.hmrcsupport@hmrc.gov.uk (after first checking your spam in-box) notifying non-receipt and confirming when your registration request was first made. Once you have obtained 'your organisation's account ID' number, please email louise.atkinson2@hmrc.gov.uk and copy in james.mak1@hmrc.gov.uk with: - Contract title and Reference - Your organisation's HMRC SAP Ariba account ID - Your organisation name - Your name - Your email address - Your telephone number Once you have complied with the above, you will receive an email confirming access to the procurement event once it is built. Additionally, should HMRC have any questions for interested bidders prior to the event being published (in terms of market engagement and requirement development), the above provided contact details will be used. Further information about HMRC's procurement tool SAP Ariba, a supplier's guide and general information about supplying to HMRC is available on the HMRC website: www.hmrc.gov.uk/about/supplying.htm If you have already registered on SAP Ariba then you may also need to re-register on HMRC's SAP Ariba in order to be added to this event.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-0545bc
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/045979-2026
Current Stage
Award
All Stages
Planning, Tender, Award

Procurement Classification

Notice Type
UK7 - Contract Details Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Selective
Procurement Method Details
Competitive flexible procedure
Tender Suitability
Not specified
Awardee Scale
SME

Common Procurement Vocabulary (CPV)

CPV Divisions

22 - Printed matter and related products

79 - Business services: law, marketing, consulting, recruitment, printing and security

CPV Codes

22400000 - Stamps, cheque forms, banknotes, stock certificates, trade advertising material, catalogues and manuals

79823000 - Printing and delivery services

Notice Value(s)

Tender Value
£32,000,000 £10M-£100M
Lots Value
£32,000,000 £10M-£100M
Awards Value
£32,000,000 £10M-£100M
Contracts Value
£32,000,000 £10M-£100M

Notice Dates

Publication Date
20 May 20263 months ago
Submission Deadline
5 Aug 2025Expired
Future Notice Date
14 Jul 2025Expired
Award Date
8 Jan 20267 months ago
Contract Period
4 Feb 2026 - 3 Feb 2031 Over 5 years
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Complete
Awards Status
Active
Contracts Status
Active

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
HM Revenue & Customs
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
LONDON
Postcode
SW1A 2BQ
Postcode Area
South West London
Country
England
Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI3 Inner London - West
Small Region (ITL 3)
TLI35 Westminster and City of London
Delivery Location
Not specified
Local Authority
Westminster
Electoral Ward
St James's
Westminster Constituency
Cities of London and Westminster

Supplier Information

Number of Suppliers
1
Supplier Name

CARTOR SECURITY PRINTERS LIMITED

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

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