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[ INDUSTRY NEWS]
N.Y. tightens access to unstamped cigarettes
On Nov. 7, New York Attorney General Eliot Spitzer announced that one of the state’s largest cigarette tax-stamping agents, Harold Levinson Associates, will stop its practice of supplying unstamped cigarettes to companies that illegally resell the products via the Internet or by mail order.
“This is the latest step in our ongoing effort to shut down illegal cigarette traffickers,” Spitzer said, adding, “These organizations prosper because they illegally obtain access to unstamped cigarettes. My office intends to do everything it can to reduce the diversion of unstamped cigarettes into the black market.”
New York Association of Convenience Stores president Jim Calvin also praised the decision.
“I applaud Attorney General Spitzer and Harold Levinson Associates for their initiative in moving New York state one step closer to a level playing field for all sellers of tobacco products,” said Calvin. “Everybody loses when cigarettes are sold without age verification or tax collection. State and local governments lose hundreds of millions of dollars each year in tax revenues. Brick-and-mortar retailers lose an enormous volume of legitimate trade. And public health loses because it thwarts efforts to prevent youth access to tobacco and to encourage smokers to quit by making it too expensive.”
Specifically, the agreement prohibits HLA from selling unstamped cigarettes to persons who are not exempt from paying taxes and to anyone known to be engaged in unlawful Internet tobacco sales. Additionally, HLA will hire an independent compliance officer to ensure compliance with the agreement, according to a press release.
In New York, there are roughly 100 licensed cigarette-stamping agents, of which about 20 sell unstamped cigarettes. HLA sells more than 80 million packs of unstamped cigarettes per year.
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