Tobacco Smuggling Bill Passes House Committee

On Wednesday, July 16, 2008, the House Judiciary Committee passed H.R. 4081, the Prevent All Cigarette Trafficking Act (PACT) to prevent online tobacco sales to youth, among other issues.

Findings in the bill introduced by Representative Anthony D. Weiner (D-9th/NY) assert that the majority of internet and non-retail sales of tobacco products occur without proper precautions to prevent sales to minors, without the payment of applicable taxes, and without complying with registration and reporting requirements in federal law. Internet sales alone reportedly account for billions of dollars of lost federal, state, and local tobacco tax revenue each year.

If passed, PACT would require that tobacco sellers that ship their product verify the age of buyers to prevent minors from having a cheap and easy method to purchase tobacco products by internet, mail, fax, and phone order. Sellers would be required to keep delivery sales records for four years, and register with the attorney general. PACT would also prohibit the delivery sale of shipments that weigh more than 10 pounds, and increase collections of federal, state, and local taxes on cigarettes and smokeless tobacco.

If you would like to see a copy of the bill, please visit the Thomas website at thomas.loc.gov, and search for H.R. 4081. CADCA will continue to track and keep you posted on any updates, as PACT works its way though the House. Please contact David Kurosky via email dkurosky@cadca.org with questions.