Jump to full article: AP, 2002-02-22
Intro: Cigarette maker Rothmans Inc., whose main operating subsidiary is being investigated by the Canadian police, earned sharply higher profits in its fiscal third quarter as the cigarette maker increased revenue and lowered its costs. . .
Rothmans also noted that the police are reviewing the business records of its 60 percent owned operating subsidiary Rothmans, Benson & Hedges Inc. related to tobacco smuggling in the early 1990s.
The police are examining RBH's books from 1989-1996, a period of high tobacco taxes, rising Canadian exports to the United States and smuggling of cigarettes back into Canada from the U.S.
"During this period, exports of tobacco products by all three major Canadian tobacco manufacturers increased significantly," Rothmans said. "Smuggling of tobacco products into Canada also occurred during this time. These products included products manufactured by RBH."
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