NEW YORK -- The U.S. House of Representatives on Wednesday passed legislation to give law enforcement new tools to crack down on smugglers of tobacco and curb illicit tobacco sales over the Internet. The bill, the Prevent All Cigarette Trafficking Act (PACT) of 2008, was sponsored by Representative Anthony D. Weiner (D-N.Y.), a member of the House Judiciary Crime, Terrorism & Homeland Security Subcommittee; it passed by a vote of 379 to 12.
The bill makes it a felony for selling tobacco in violation of any state tax law. The legislation will also effectively end Internet tobacco smuggling [image-nocss] by stopping shipments of cigarettes through the U.S. Postal Service. FedEx, UPS, and DHL have already agreed not to mail tobacco.
By some estimates, New York state loses $1 billion from tobacco smuggling, said Weiner. According to a recent Government Office of Accountability (GAO) report, Hezbollah profited $1.5 million from the sale of illegal tobacco from 1996-2000.
Weiner said, “This new crackdown on the illegal sale of tobacco will close a major source of finances for global terrorists and criminals. Every day we delay is another day that New York loses significant amounts of tax revenue and kids have easy access to tobacco products sold over the internet.”
The legislation closes loopholes in current tobacco trafficking laws as well as provides law enforcement with new tools to combat the new methods being used by cigarette traffickers to distribute their products. Provisions include making smokeless tobacco a regulated substance, imposing shipping and recordkeeping requirements on delivery sellers of cigarettes and smokeless tobacco and requiring common carriers of cigarette products to obtain age and identity verification upon delivery of such products.
PACT contains the following measures:
Strengthens the Jenkins Act: Increases existing penalties from a misdemeanor to a felony, making it a federal offense for any seller making a sale via telephone, the mail or the Internet to fail to comply with all state tax laws. The legislation also empowers each state to enforce the federal law against out-of-state sellers sending delivery sales into its state by giving state attorneys general the authority to seek injunctive relief and civil penalties against violators. List Enforcement: Empowers the attorney general to compile a list of delivery sellers who fail to comply with this act or states' tax laws. Age Verification: Requires Internet and other remote sellers to verify the purchaser's age and identity through easily accessible databases. It also requires the person accepting delivery to verify their age. Tobacco as Non-Mailable Matter: Makes cigarettes, smokeless tobacco and roll-your-own tobacco products non-mailable matter through USPS. While FedEx, UPS and DHL have agreed not to ship cigarettes and other tobacco products, USPS has continued to deliver tobacco products bought over the Internet. ATF Inspection Authority: Grants the Bureau of Alcohol, Tobacco, Firearms & Explosives inspection authority for distributors of cigarettes and creates a penalty for those who refuse inspection.PACT now goes to the Senate for consideration.
Click herefor details on the legislation.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.