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European Online Import Cigarettes - Illegal in USA
Philip Morris has gone after other Internet cigarette vendors with mixed results. It says it has initiated 20 lawsuits in seven federal courts against 67 owners and operators of online smoke shops. It has won judgments against the operators of four Web sites registered in Panama City, Panama, including Discount-Marlboro-Cigarettes.com and Allsmoke.com.

Earlier this year, a U.S. district court in Los Angeles ruled against the four sites and awarded the tobacco giant some $9 million in damages and fees and gave it the rights to their Internet domain names. Discount-Marlboro-Cigarettes closed down; Allsmoke relocated to a Russian Web server and now is selling Marlboros at Allsmoke.ru.

The online cigarette business is creating a rare meeting of minds among tobacco companies, politicians and antismoking activists. There are now hundreds of online cigarette vendors whose sales threaten to eat into tax revenue and sales of conventional tobacco merchants. Anyone with a credit card can buy cigarettes online from sites like Yesmoke.com, making it hard to enforce bans on smoking by minors.

Online smoke shops based in the U.S. have attracted lawmakers' scrutiny by shipping cigarettes from low-tax states to high-tax ones. The House is reviewing an amendment to the Jenkins Act, which regulates mail-order trade, to include interstate online shopping. If signed into law, the measure would make it easier to prevent U.S. cigarette sites from circumnavigating taxes. But it isn't clear whether lawmakers can stop foreign online outfits from selling cigarettes in the U.S.

The largest market for illegal European import cigarettes is the U.S., where their mail-order Marlboros, Camels and Lucky Strikes, costing as little as $14 per 10-pack carton, are winning over smokers fed up with paying $7 or more for a pack of heavily taxed U.S. smokes. In New York, where Mayor Michael Bloomberg has cracked down on smoking with bans and tax increases, a carton of Marlboros costs upward of $70. Now the cigarette industry and the city are trying to snuff out the Messinas' business model.

excerpt from Smoking Lobby.com

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