Sale of export cigarettes.
(a) Findings and Purpose.
(1) Cigarette smoking presents serious public health concerns to the state
and to the citizens of the state. The Surgeon General has determined that
smoking causes lung cancer, heart disease, and other serious diseases
and that there are hundreds of thousands of tobacco-related deaths in
the United States each year. These diseases most often do not appear until
many years after the person in question begins smoking.
(2) It is the policy of the state that consumers be adequately informed about
the adverse health effects of cigarette smoking by including warning notices
on each package of cigarettes.
(3) It is the intent of the General Assembly to align state law with federal
laws, regulations, and policies relating to the manufacture, importation,
and marketing of cigarettes, and in particular, the Federal Cigarette
Labeling and Advertising Act,
15 U.S.C. § 1331 et seq., and
26 U.S.C. § 5754.
(4) The General Assembly finds that consumers and retailers purchasing cigarettes
are entitled to be fully informed about any adverse health effects of
cigarette smoking by the inclusion of warning notices on each package
of cigarettes and to be assured through appropriate enforcement measures
that cigarettes they purchase were manufactured for consumption within
the United States.
(b) Definitions. As used in this section:
(A) "Cigarette" means any product that contains nicotine, is intended
to be burned or heated under ordinary conditions of use, and consists
of or contains:
(i) Any roll of tobacco wrapped in paper or in any substance not containing tobacco;
(ii) Tobacco, in any form, that is functional in the product which, because
of its appearance, the type of tobacco used in the filler, or its packaging
and labeling is likely to be offered to or purchased by consumers as a
(iii) Any roll of tobacco wrapped in any substance containing tobacco which,
because of its appearance, the type of tobacco used in the filler, or
its packaging and labeling is likely to be offered to or purchased by
consumers as a cigarette described in subdivision (b)(1)(A)(i) of this section.
(B) "Cigarette" includes "roll your own", which is any
tobacco which, because of its appearance, type, packaging, or labeling
is suitable for use and likely to be offered to or purchased by consumers
as tobacco for making cigarettes.
(C) For purposes of this definition of "cigarette", nine one-hundredths
of an ounce (0.09 oz.) of "roll your own" tobacco shall constitute
one (1) individual "cigarette"; and
(2) "Package" means a pack, carton, or container of any kind in
which cigarettes are offered for sale, sold, or otherwise distributed
or intended for distribution to consumers.
(c) Tax Stamps.
(1) No tax stamp may be affixed to or made upon any package of cigarettes if:
(A) The package differs in any respect with the requirements of the Federal
Cigarette Labeling and Advertising Act,
15 U.S.C. § 1331et seq., for the placement of labels, warnings, or any other information
upon a package of cigarettes that is manufactured, packaged, or imported
for sale, distribution, or use within the United States;
(B) The package is labeled "For Export Only", "U.S. Tax Exempt",
"For Use Outside U.S.", or similar wording indicating that the
manufacturer did not intend that the product be sold in the United States;
(C) The cigarettes in the package do not comply with any other applicable
requirements imposed pursuant to federal law and federal implementing
(D) The package in any way violates federal trademark or copyright laws;
(E) The package or a package containing individually stamped packages has
been altered by adding or deleting the wording, labels, or warnings described
in this subdivision (c)(1); or
(F) With respect to the cigarettes, any person is not in compliance with
15 U.S.C. § 1335a relating to submission of ingredient information to federal authorities,
19 U.S.C. §§ 1681-1681b relating to imports of certain cigarettes,
26 U.S.C. § 5754, relating to previously exported tobacco products, or any other federal
law or implementing federal regulations.
(2) Any person who sells or holds for sale cigarette packages to which is
affixed a tax stamp in violation of this section shall be subject to the
penalties prescribed in subdivision (c)(5) of this section.
(3) The Arkansas Tobacco Control Board may revoke a wholesale or retail license
of any person who sells or holds for sale cigarette packages to which
is affixed a tax stamp in violation of this section.
(4) The Department of Finance and Administration or the Director of Arkansas
Tobacco Control may seize and destroy or sell to the manufacturer only
for export packages that do not comply with this section.
(5) A violation of this section is a deceptive act or practice and shall constitute
a Class A misdemeanor.
(6) On or before the <> fifteenth business day of each month, each person
licensed to affix the state tax stamp to cigarettes shall file with the
Director of the Department of Finance and Administration for all cigarettes
imported into the United States to which the person has affixed the tax
stamp in the preceding month copies of the customs certificates with respect
to the cigarettes required to be submitted by
19 U.S.C. § 1681a(c).
(7) Any person who sells, distributes, or manufactures cigarettes and sustains
direct economic or commercial injury as a result of a violation of this
section may bring an action in good faith for appropriate injunctive relief.