A: PM USA established its Brand Integrity Department in March 2002 in order to protect the integrity of PM USA brands and the legitimate trade channels through which they are distributed and sold. PM USA defines contraband cigarettes as product that is counterfeit, tax-issue (untaxed and under-taxed), illegally imported or stolen.
A: Law enforcement and regulatory agencies have the authority to enforce laws related to contraband cigarette trafficking. PM USA information and resources can help support enforcement efforts. Through our Brand Integrity program, we gather market information on contraband trade in cigarettes and related activities, share that information with federal, state, and local law enforcement and provide support for investigations.
We also advocate for tougher legislation to address contraband cigarette-related activity, initiate commercial litigation against those who sell counterfeit products and infringe on our trademarks and intellectual property rights, and assess product security features and technologies.
PM USA is committed to protecting our brands. We continue to play an active role in addressing the problem and supporting the efforts of regulatory and law enforcement authorities.
A: Contraband cigarette activity is illegal and is therefore impossible to quantify accurately. The trade in contraband cigarettes poses a continued concern for our business, law enforcement and regulatory authorities, and the legitimate wholesale and retail trade. We believe it is a problem with the potential to disrupt the legitimate cigarette trade in this country.
A: No. Illegal activity involving our brands negatively impacts our business as well as law-abiding retailers, wholesalers, adult smokers, federal and state governments and society in general.
A: From 2002 to January 2008, the national average weighted state excise tax (SET) increased from 55 cents per pack to $1.04 per pack. In addition to state excise tax increases, there is a wide variation in SET rates ─ from 7¢ a pack in South Carolina to $2.57 a pack in New Jersey.
Excise tax increases can have a number of unintended consequences. Excessive increases in state excise taxes and growing disparities in cigarette excise taxes from state to state can provide an incentive for consumers to seek alternative sources to purchase cigarettes, resulting in significant financial incentives for criminals and revenue losses for government.
A: We believe there are several problems with most Internet cigarette sales. First, we believe that consumer cigarette sales should occur where there is reliable age verification, as in face-to-face transactions with adult cigarette smokers. Second, PM USA expects its cigarettes to be sold in compliance with all applicable laws and regulations. Internet sellers and purchasers often avoid the payment of cigarette excise and sales taxes. Sellers often misinform consumers about the consumer's obligation to pay taxes on the cigarettes they purchase and frequently do not report cigarette sales to the state tax authorities, as is required by the federal Jenkins Act. This results in tax revenue losses of millions of dollars due to uncollected excise tax revenues from Internet sales.
A: Counterfeit packs and cartons are made to look like genuine cigarette brands. They may be very difficult to distinguish in appearance from the genuine product manufactured by PM USA.
As a general rule, adult cigarette smokers should be wary of purchasing cigarettes from non-traditional outlets such as street vendors and Internet sites. Adult smokers should purchase their cigarettes from reputable, reliable retailers and should not be attracted by pricing that seems too good to be true.
Adult consumers who buy cigarettes that they believe to be counterfeit should call the PM USA Consumer Response Center at 1-800-343-0975, Option 3.
A: If adult smokers believe they have purchased cigarettes that were the subject of illegal trade, they should call the PM USA Consumer Response Center at 1-800-343-0975, Option 3.
A: Some states have enacted laws that restrict the sale and shipment of cigarettes over the Internet to consumers in that state. For example, it is illegal for Internet vendors to ship cigarettes or cause cigarettes to be shipped to consumers in New York State. Moreover, a number of states have enacted age-verification laws to ensure that minors do not purchase cigarettes illegally over the Internet. Depending on where you live, it may be illegal for a delivery service to simply leave a package of cigarettes in your mailbox when you're not at home. In addition, under federal law, it is illegal for Internet vendors or consumers to cause PM USA-branded cigarettes to be imported into the United States. Cigarettes that are imported illegally into the United States are subject to seizure and destruction, without compensation to the purchaser.
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Yes. Every state and some localities impose an excise tax on the purchase of cigarettes, and some states and localities also impose sales and use taxes. Purchasers are required to pay the appropriate taxes even if they buy cigarettes outside a state and bring or ship them into that state. State taxes are owed by the purchaser, regardless of any statements to the contrary on Internet sites. In addition, federal law requires Internet vendors who sell or ship any quantity of cigarettes into a state to report the sale of cigarettes and certain information concerning the sale, including the name and contact information of the purchasers, to state tax authorities. State tax authorities can then use this information to collect taxes from in-state consumers.
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Often, no. Many Internet sites, particularly those operating outside the United States, sell cigarettes that are not intended for sale in the United States. The cigarettes may carry the same brand name as domestic cigarettes, but the taste may differ because they are produced to satisfy taste preferences in the intended market.
A:
No. The Imported Cigarette Compliance Act (ICCA) of 2000 prohibits the importation of cigarettes into the United States bearing registered U.S. trademarks without the trademark owner's authorization. That law is enforced by the United States Customs Service, and PM USA has notified Customs that it does not authorize the importation of any PM-branded cigarettes into the United States. Accordingly, it is not legal to import PM-branded cigarettes into the United States, including through international mail or courier, regardless of any statements on Internet sites to the contrary. Cigarettes imported in violation of the ICCA are subject to seizure and destruction.
A: Most, if not all, Internet cigarette sellers are evading the laws of the federal and state governments with respect to excise taxes, illegal imports and age verification. PM USA has a remote sales policy requiring that the sale of PM USA brands via the Internet be conducted in compliance with all applicable laws, including excise tax payment and reliable age verification (at the point of ordering and the point of delivery).
