[Intl-tobacco] Colombia Sues Philip Morris for $21 Mln in Imports, Paper Say (fwd)

[Robert Weissman]

Colombia Sues Philip Morris for $21 Mln in Imports, Paper Say
by Robert Willis
Source: Bloomberg News, Friday, 11/24/00

 Bogota, Nov. 24 (Bloomberg) -- Colombia is suing Philip Morris Inc., the
world's No. 1 tobacco company, for 44.6 billion pesos ($21 million) for
allegedly not declaring the value of cigarettes it brought into Colombia,
newspapers reported.

Philip Morris declared the value of the imports between July 1997 and June
1998 at 13.2 billion pesos, but customs calculates the value at 57.8
billion pesos, the daily El Tiempo reported.

Customs director Ricardo Ramirez said the company is being accused of
exchange-rate infractions, the daily reported. The company's vice
president for the Andean region, Armando Sobalvarro, said the company was
preparing arguments to defend itself from the accusations.

Colombia and Philip Morris in August reached an accord by which the
cigarette maker would use security-seals to make it easier for consumers
to detect smuggled cigarettes after Philip Morris was fined for allegedly
not declaring its imports. Cigarette smuggling costs the country about $25
million a year in lost tax revenue, according to government estimates.