Spectra Systems Corporation has been selected as the winning bidder to produce and supply duty stamps for HMRC’s forthcoming Vaping Duty Stamps scheme, aimed at clamping down on illicit vape sales ahead of the introduction of Vaping Products Duty in October 2026.
In a regulatory filing on Friday (16 January), the AIM-listed security technology firm said its security printing arm, Cartor Security Printers (CSP), had received notice from HMRC that it has been awarded the contract, though the agreement is still being finalised and is expected to be signed shortly.
The estimated contract value is £38.4 million including VAT, based on a five-year term with an option for a further year. Spectra expects to receive around 15 per cent of the total five-year revenue, with CSP responsible for physical production and supply of the duty stamps as well as authentication features and associated devices provided by Spectra’s operation in Rhode Island, USA.
CSP submitted its bid as part of a consortium with what Spectra described as a “world leader in tax stamp track and trace technology”. Under the consortium structure, the partner will manage systems allowing businesses to order and pay for stamps, handle stamp management, and collect and report data to HMRC tracking the “entire journey through the supply chain”.
The award is a key milestone in the rollout of the duty stamp regime, first confirmed by the government in November’s Budget. Ministers said at the time that all vaping products sold in the UK will be required to carry an official duty stamp from 1 October 2026, with the measure designed to make illicit and non-compliant products instantly identifiable to Trading Standards, retailers and consumers.
The scheme is expected to use digital stamps featuring QR codes, enabling rapid legitimacy checks. The government has also indicated that retailers and suppliers will be able to register for the system from April 2026, ahead of a six-month sell-through period for existing unstamped stock once the rules take effect.
The duty stamps scheme forms part of the enforcement infrastructure for the UK’s new Vaping Products Duty, due to be introduced from 1 October 2026 at a flat rate of £2.20 per 10ml applied to all vaping liquid.
“We are pleased to have received the contract award notice for what is a major contract in our home country and look forward to supporting HMRC in achieving its objectives,” Andrew Brigham, managing director of Cartor Security Printers, said
He added that the award “underscores the breadth and depth of Spectra's expertise in security printing and authentication, reflecting the company's many years of proven experience in the field”.
Spectra chief executive Dr Nabil Lawandy said: “We are delighted to have been selected, along with our partner, by HMRC particularly as there were other major players competing with us. This award highlights the seamless product development and sales process between the USA and UK organisations in Spectra.”
Spectra said it would provide a further update once the contract has been signed.