Doggett, Lautenberg, Durbin Introduce Legislation to Eliminate Smuggled Tobacco, Reduce Crime

"Blackmarket cigarettes are robbing our coffers of a critical revenue source that weneed to pay for vital domestic programs like health insurance for children," said Senator Lautenberg. "By stoppingthe sale of illegal cigarettes at below-market prices, we can reduce smokingand fight tobacco-related diseases."

"Thisbill will help us crack down on tobacco smuggling and keep black marketcigarettes out of the hands of kids," SenatorDurbin said. "At the same time, we'll help the Federal government andstates collect the taxes they're owed on these products so they have theresources necessary to continue much needed tobacco prevention and other healthprograms. I hope we're able to quickly move this bill to the floor."

TheU.S. Department of Justice estimates that tobacco smuggling in the United Statescosts federal and state governments at least $5 billion in lost revenueannually. The STOP Act mandates that packages of tobacco productsmanufactured in or imported to the United Statesbear a unique, high-tech identification marking similar to that which the Stateof Californiais already using.

In California, the firststate to implement such a system, cigarette tax revenues have increased by anestimated $152 million per year. This requirement, along with increasedpermit and record-keeping requirements throughout the supply chain, will enableenforcement officials to distinguish real tax markings from even the mostadvanced counterfeits, identify who applied the marking and initially sold andpurchased the product, and obtain other information useful for tracking,tracing, andenforcement purposes. These requirements will helpstates and the federal government increase their tobacco tax receipts withoutraising taxes.

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