http://www.tobacco.org/newsfeed/category/crime.rss Latest top tobacco news headlines en-us http://www.digitaljournal.com/article/282479 http://tobacco.org/news/293115.html A presumed cigarette smuggling scheme was nipped in the bud by Swedish police earlier this week. Two North Korean diplomats were arrested Wednesday with a large quantity of cigarettes. The diplomats claimed immunity, but Swedish police arrested the pair on "suspicion of smuggling 230,000 cigarettes." The couple, a man and woman, are accredited diplomats in Russia for North Korea. Police caught the diplomats out in Sweden Thursday and was able to arrest them because the diplomatic immunity that automatically is granted to political representatives was for Russian, not Sweden. DigitalJournal.com Sweden Korea - North Sat, 21 Nov 2009 05:00:00 GMT http://www.reuters.com/article/oddlyEnoughNews/idUSTRE5AJ2Z420091120 http://tobacco.org/news/293067.html Swedish police have arrested two North Korean diplomats on suspicion of smuggling 230,000 cigarettes into the Nordic country, the Swedish Customs Office said Friday. The pair, a man and a woman who have diplomatic status in Russia, were stopped by Swedish customs officers Wednesday morning as they drove off a ferry from Helsinki, the Finnish capital. Customs officials discovered Russian cigarettes in the car driven by the couple, Swedish Customs spokeswoman Monica Magnusson told Reuters. The two North Koreans claimed diplomatic immunity. "They were accredited as diplomats in Russia, but had no accreditation in Sweden," she said. "They were arrested on suspicion of smuggling." Reuters Sweden Korea - North Fri, 20 Nov 2009 05:00:00 GMT http://www.kyivpost.com/news/opinion/op_ed/detail/53248/ http://tobacco.org/news/293046.html Tobacco tax increases are the most effective way to encourage people to stop smoking. Ukrainian President Victor Yushchenko, citing concern for the tobacco industry, on Nov. 11 vetoed legislation that would have hiked the excise tax on tobacco products once more. It is worth remembering that - even though tobacco excise taxes were increased in September 2008, and again in February and May of this year - cigarette prices in Ukraine remain among the lowest in Europe. This leads directly to a public health catastrophe for the nation and creates conditions for rampant smuggling of made-in-Ukraine cigarettes to other nations. . . . However, tobacco companies in Ukraine claimed that this tax increase would have been disastrous for their business. . . . Transnational tobacco companies came to Ukraine in 1993. They promised employment, investment and revenue. Now they control 99 percent of the tobacco production in Ukraine. In 1992, Ukraine produced 9,000 tons of tobacco leaves. However, despite huge increases in cigarette production, tobacco growing has almost disappeared in the country. In 1996-2008, the foreign trade balance of tobacco leaves and products was negative for Ukraine and totaled more than $2 billion. It actually means that Ukrainian smokers invested $2 billion in the economies of other nations. What tobacco companies actually produce is death. . . . Many politicians in Ukraine already understand that high tobacco taxes are good both for public health and public revenues. I hope that the current and future president of Ukraine will understand this as well. Kyiv Post news@kyivpost.com (Konstantin Krasovsky ) Ukraine Fri, 20 Nov 2009 05:00:00 GMT http://www.jaxobserver.com/2009/11/19/tobacco-tax-estimates-on-target/ http://tobacco.org/news/293038.html Money flowing into the state from the higher cigarette tax remain on target, with economists Wednesday sticking by earlier forecasts that a dollar per pack boost enacted this spring will pull in $850 million this year. The cash-flow is strong even as cigarette sales fell with higher prices – particularly in North Florida counties adjacent to states with cheaper smokes. “I think the legislation is working exactly as we’d hoped,” said Rep. Jim Waldman, D-Coconut Creek, who sponsored the cigarette tax hike last spring. “Not only are we bringing in more revenue, we are reducing consumption.” Waldman downplayed the impact of cross-border sales. But statistics compiled by the Department of Business and Professional Regulation, which tracks sales, show the biggest declines are in border counties – raising questions about whether people are smoking less, or just traveling out-of-state to get cigarettes. Jacksonville Observer Thu, 19 Nov 2009 05:00:00 GMT http://www2.timesdispatch.com/rtd/business/local/article/B-FAKE20_20091119-221406/306841/ http://tobacco.org/news/293036.html The Henrico County-based cigarette-maker has monitored retail markets for years to keep fake versions of its brands off store shelves. This year, Philip Morris has sued 27 stores in New York and New Jersey, which are hotspots for the fakes because of high state taxes, a huge port through which the contraband is easily shipped, and criminal organizations that wholesale the counterfeits. For Philip Morris, the stakes are simple. In addition to the lost sales, the company doesn't want smokers buying a pack of Marlboros and thinking they don't taste the same, said company spokesman David Sutton. . . . "The sale of untaxed cigarettes harms legitimate wholesale and retail businesses and costs New York and New Jersey needed tax revenues that could be used to support essential public services," he said. Richmond Times-Dispatch dress@timesdispatch.com (David Ress) Fri, 20 Nov 2009 05:00:00 GMT http://www.prnewswire.com/news-releases/coalition-to-stop-contraband-tobacco-applauds-senate-judiciary-committee-for-passage-of-the-prevent-all-cigarette-trafficking-pact-act-of-2009-70549427.html http://tobacco.org/news/293029.html The Coalition to Stop Contraband Tobacco today applauded the U.S. Senate Judiciary Committee for its passage of S. 1147, the Prevent All Cigarette Trafficking (PACT) Act of 2009. The PACT Act will close the gaps in current federal law and will help combat the illegal sales of cigarettes and other tobacco products. "We are gratified by the Senate Judiciary Committee's vote today approving S. 1147, the PACT Act," said Scott Ramminger, president of the American Wholesale Marketers Association, a member of the coalition. "The overwhelming bipartisan vote in the House, the diverse groups supporting this legislation and now the Senate Judiciary Committee's action speak clearly of the need for this important legislation." Internet and other "remote" sales of cigarettes and smokeless tobacco products have significant adverse consequences by undercutting state laws that prevent youth access to tobacco. Additionally these sales circumvent applicable state taxes and states lose substantial tax revenues. PR Newswire Thu, 19 Nov 2009 05:00:00 GMT http://www.csnews.com/csn/cat_management/tobacco/article_display.jsp?vnu_content_id=1004044695 http://tobacco.org/news/293028.html With unanimous support, S. 1147, the Prevent All Cigarette Trafficking Act (PACT Act) was approved yesterday by the Senate Judiciary Committee, and will head to the full Senate. If passed, the bill would prevent illegal untaxed cigarette trafficking and access to tobacco products by youth by prohibiting online and mail-order sales of tobacco. If the bill is signed into law, its regulations would go into effect 90 days following the enactment by the president, according to the version passed yesterday by the committee. Convenience Store News Thu, 19 Nov 2009 05:00:00 GMT http://www.nacsonline.com/NACS/News/Daily/Pages/ND1120092.aspx http://tobacco.org/news/293026.html The U.S. Senate Judiciary Committee unanimously approved legislation yesterday that will help combat online cigarette sales and prevent youth access to tobacco products. The Prevent All Cigarette Trafficking (PACT) Act closes gaps in current federal laws regulating “remote” or “delivery” sales of cigarettes and smokeless tobacco products. The bill enhances penalties for violations and provides law enforcement with new tools to combat the innovative methods being used by cigarette traffickers to distribute their products. “Tobacco smuggling has developed into a popular, and highly profitable, means of generating revenue for criminal and terrorist organizations,” said Sen. Herb Kohl (D-WI), noting that cigarette trafficking, including the illegal sale of tobacco products over the Internet, costs states billions of dollars in lost tax revenue each year. National Association of Convenience Stores nacspoll@nacsonline.com (RSS Feed) Fri, 20 Nov 2009 05:00:00 GMT http://www.abs-cbnnews.com/business/11/19/09/cigarette-stamps-proposal-not-done-deal-teves http://tobacco.org/news/293011.html The proposal of Swiss firm SICPA Product Security SA to provide security stamps on cigarettes is not a done deal, Finance Secretary Margarito Teves said yesterday, assuring lawmakers that there was nothing final yet. "It must be clarified that the SICPA (proposal) is merely an unsolicited proposal under the BOT (Build-Operate-Transfer) Law. It's not a done deal yet," Teves said. He said that even if the Bureau of Internal Revenue (BIR) is already in negotiations with SICPA for its stamp-tax technology project, it would still be sent back to the National Economic and Development Authority (NEDA) for its board approval and subsequently, be subjected to a "Swiss Challenge." "Processes must be observed before a decision on SICPA is made," he told reporters yesterday. ABS-CBN Broadcasting Corporation feedback@abs-cbnnews.com (Iris C. Gonzales, The Philippine Star) Philippines Fri, 20 Nov 2009 05:00:00 GMT http://www.malaya.com.ph/11202009/edit.html http://tobacco.org/news/293010.html A SWISS company is proposing to put in place a system where tax stamps will be affixed on every pack of cigarette and every bottle of liquor to raise more revenues for the government. The company, SICPA, wants to make it appear affixing stamps on highly taxable goods is a fool-proof way of curbing smuggling and tax evasion by manufacturers. The reality is that it is selling a fraudulent bill of goods. It’s only about 20 years now that cigarettes and liquor have been free of the green BIR stamp on every pack . . . SICPA claims its stamps cannot be counterfeited. In this land of fake peso bills, diplomas, passports and even visas, does SICPA really want us to believe its stamps could not be faked? Even a reasonable facsimile would do as in the previous experience with BIR stamps. The BIR stamps, it will be recalled, were also printed in security paper with watermark. A close look at the genuine BIR stamps and the fakes would show which was which. But to repeat, this did not discourage the smugglers. But the biggest objection to the SICPA proposal is that it will raise prices by an estimated P1.50 a pack, a cost that will be passed on to consumers. Out of that P1.50, about P1 will go to the government and P0.50 to SICPA. Given that kind of sharing, why does not the government simply increase the specific tax on cigarettes across-the-board by P1 a pack? The government collects the same revenues. The consumer gets a P0.50 break. The only loser would be SICPA and, presumably, its sponsors who are ramming the proposal down the throat of the BIR. Malaya Philippines Thu, 19 Nov 2009 05:00:00 GMT http://www.malaya.com.ph/11202009/busi1.html http://tobacco.org/news/293009.html Finance secretary Margarito Teves yesterday assured lawmakers that there is nothing final in the ongoing negotiations of the Bureau of Internal Revenue (BIR) with Swiss firm SICPA Product Security SA, stressing that a "process" has to be observed. "It must be clarified that the SICPA (proposal) is merely an unsolicited proposal under the BOT (Build-Operate-Transfer) law. It’s not a done deal yet," Teves said. He said even if the BIR wraps up its negotiations with SICPA for the latter’s stamp-tax technology project, the proposal would still be sent back to the National Economic Development Authority (NEDA) for board approval and subsequently be subjected to a Swiss Challenge. "Processes must be observed before a decision on SICPA is made," he said. "It must be first accepted, approved and go through some more processes like getting NEDA board approval." Malaya Philippines Thu, 19 Nov 2009 05:00:00 GMT http://www.thevillager.com/villager_342/gristedeschief.html http://tobacco.org/news/293001.html The freshly remodeled Gristedes supermarket on 25 University Place has expanded its space, adding new sections for beer, hot food, a salad bar, bakery and organic products, all looking like crowd-pleasers beneath Thanksgiving decorations strung above the aisles. But cigarettes are no longer on sale here -- seemingly a sign of the times in this upscale Greenwich Village neighborhood near New York University. "We haven't had them for some time now," said an assistant manager who identified himself only as Thomas. He noted that cigarettes are available at other Gristedes stores in New York (about 20 still carry them), even though he believes the demand is down. The main reason for the decline in tobacco sales, another Gristedes manager said, is that "people know where they can get them elsewhere" for half the price that conventional retailers in New York charge -- upward of $95 per carton, with $4.25 in state and city taxes tacked on. He was alluding to untaxed tobacco sold on Indian reservations, a subject that has bedeviled convenience-store operators and New York governors from Cuomo to Paterson. Led by its Greek-born owner and C.E.O., John Catsimatidis, a longtime New York City mayoral wannabe who smokes an occasional cigar, Gristedes Foods Inc. has claimed in protracted litigation that Indian merchants on two Eastern Long Island reservations are luring away New York customers, and even helping to fund organized crime gangs and terrorist groups like Hezbollah with bulk sales, a charge some politicians dismiss as absurd but others solemnly repeat. . . . Since he cares so much about health, why does he sell any cigarettes at his grocery stores? "There is such a thing as freedom of choice," the mogul replied. "I lecture my wife, who smokes, and tell her, Why don't you just have one or two instead of more? It's like what the Greek philosophers say: Everything in moderation." The Villager lincoln@downtownexpress.com (Mary Reinholz) Thu, 19 Nov 2009 05:00:00 GMT http://www.njbiz.com/article.asp?aID=79857 http://tobacco.org/news/293000.html Reyes Grocery Store and Sunny’s Supermarket , in Newark, were among the defendants named in litigation brought by tobacco company Philip Morris USA. NJBIZ editorial@njbiz.com (João-Pierre Ruth ) Thu, 19 Nov 2009 05:00:00 GMT http://pmusa.com/en/cms/Media/Company_Announcements/2009/International_Trade_Commission_Blocks_Illegal_Internet_Cigarette_Sales.aspx http://tobacco.org/news/292999.html The International Trade Commission (ITC) took action this week to stop illegally imported Marlboro®, Virginia Slims® and Parliament® cigarettes from entering the United States. The ITC issued a General Exclusion Order requiring U.S. Customs and Border Protection (CBP) to deny entry of these illegal goods, which infringe on Philip Morris USA's (PM USA) trademarks. "We're pleased that the ITC has granted the General Exclusion Order, which should be a helpful tool for law enforcement in addressing illicit Internet cigarette sales and reinforces that preventing these imports is a priority," said Joe Murillo, vice president and associate general counsel, Altria Client Services, speaking on behalf of Philip Morris USA. Philip Morris USA Thu, 24 Sep 2009 04:00:00 GMT http://pmusa.com/en/cms/Media/Company_Announcements/2009/Philip_Morris_USA_Sues_Retailers_to_Stop_Counterfeit_Cigarette_Sales.aspx http://tobacco.org/news/292998.html Philip Morris USA (PM USA) filed lawsuits against ten retailers selling counterfeit versions of the company's Marlboro� brand cigarettes in New York and New Jersey. "The New York metropolitan area continues to be a lucrative market for counterfeit and contraband cigarette smugglers," said Joe Murillo, vice president and associate general counsel, Altria Client Services, speaking on behalf of PM USA. "High excise taxes, coupled with New York state's lack of effective tax enforcement, only makes the problem worse," added Murillo. "These lawsuits are the latest in a series of filings by Philip Morris USA aimed at combating the sale of counterfeit cigarettes in New York and New Jersey," said Murillo. Since May 2009, Philip Morris has filed lawsuits against 27 retail locations in New York and New Jersey for selling counterfeit Marlboro� brand cigarettes In addition to violating many trademark laws, counterfeit cigarettes are almost always sold without the appropriate federal and state excise tax. The counterfeit cigarettes purchased from the retailers named in today's suits bore no tax stamp or a counterfeit tax stamp. As a result, the applicable excise taxes were not paid. . . . Eastern District of New York Maria’s Deli Grocery 143-20 101 Avenue, Richmond Hills, NY 11419 Loveras Grocery 996 Nostrand Avenue, Brooklyn, NY 11225 Southern District of New York Aloshe Mini Market 1889 Guerlain Street, Bronx, NY 10461 El Barrio Grocery Deli 39 West 183rd Street, Bronx, NY 10453 Fernandez Grocery Corp. 1665 Madison Avenue, New York, NY 10029 Philip Morris USA Thu, 19 Nov 2009 05:00:00 GMT