AWMA is spearheading a group known as the Coalition to Stop Contraband Tobacco whose mission is to enact legislation that will eliminate underage access to tobacco on the Internet, curtail associated illegal activities and capture lost state excise tax revenues.  In just the few weeks since the coalition was formed the number of supporters has grown to over 25 members and is still growing.  

Recent movement in the U.S. Senate on S. 1147 likely results from strong action taken by the coalition to bring this issue to the forefront and push this bill through Congress.  S. 1147 would update the Jenkins Act – which makes clear that taxes must be paid for remote sales of cigarettes – to ensure that tax and age verification laws are followed by Internet sellers.  In light of the 62 cent per pack increase in the Federal Excise Tax on cigarettes and various state increases, there is an even greater need to pass this measure as Internet vendors’ illegal, tax-free sales have become even more attractive to unknowing consumers.  This bill is necessary to promote fairness in the tobacco retail business.  

As a leader of the Coalition to Stop Contraband Tobacco, AWMA has been working to send letters to all members of the U.S. Senate and target specific key Senators in meetings on this issue.  In addition, AWMA is putting the final touches on an updated study similar to the one we did in 2005 on this issue.  This 2009 study was undertaken to determine whether progress has been made in curbing the illegal Internet sales of tobacco products.  Our results, which we are putting into publishable form, indicate that if anything the problem has gotten worse.  Legislation is needed if we are to truly address the illegal remote tobacco sales problem.  AWMA will be making the results of this new 2009 study available shortly.

AWMA members wishing to make their views known on this important issue may visit our Web site at www.awmanet.org and simply click on the “Government Affairs” button on the top left-hand side of the screen to be taken directly to a pre-written letter you may send to your legislators on this issue.