[Intl-tobacco] Doggett on Tobacco Smuggling bill

Mon, 05 Aug 2002 11:12:11 -0700

--------------0BEE7C3B3099B1998796831A
Content-Type: text/plain; charset=us-ascii; x-mac-type="54455854"; x-mac-creator="4D4F5353"
Content-Transfer-Encoding: 7bit

Reminder: The Tobacco Smuggling Eradication Act has bill number: HR
5264. You can view the text of the bill, its status and co-sponsors at
http://thomas.loc.gov

Speech by Rep. Lloyd Doggett,
Floor of the House of Representatives
July 23, 2002

Mr. Speaker, this week, with the support of over 90 of our colleagues, I
am introducing major law enforcement legislation both to prevent crime
and to promote the health of Americans and people around the world.  The
Tobacco Smuggling Eradication Act seeks to slow illicit trafficking in
tobacco -- the world's most widely smuggled, legal consumer product.

Across America, this year alone 17 states have already approved
cigarette tax hikes.  Increasing the price of cigarettes is one of the
most effective ways to discourage children from beginning a lifetime of
addiction.  While each tax increase advances public health, it also
increases the incentives for smuggling cheaper, "tax-free" black-market
tobacco.

At a time of tight budgets, state and federal authorities in the United
States are suffering losses of more than $1.5 billion annually in evaded
cigarette taxes.  By cracking down on smuggling, we can collect this
much-needed revenue.  With prices rising as high as $7 a pack in New
York City, the need is even greater to stop those who offer smokers a
nicotine hit without a tax hit.

The same incentives that exist here in America exist around the world
when American tobacco is exported -- from Canada to Iraq, from China to
Columbia.  Of all cigarettes manufactured within the United States for
export, it is estimated that from 1 in every 3 to 1 in every 4 are in
fact sold illegally, without collecting taxes.

Internal tobacco company documents have revealed that big tobacco
companies themselves know that their cigarettes are sold to distributors
and agents who will smuggle them illegally.  In too many cases they have
carefully overseen and even directed the actions of smuggling
intermediaries, ensuring that consumers have access to lower,
black-market prices, thereby encouraging consumption and building market
share.

The health consequences of smuggling are severe because the number of
nicotine-addicted children and poor increases dramatically with the
availability of cheap tobacco.  The World Bank reports that, within the
next 2 decades, tobacco will become the single biggest cause of
premature death worldwide, accounting for 10 million deaths each year.
That is the equivalent of 70 jet planes crashing every single day, and
70 percent of these deaths will occur in developing countries, that are
least able to fend off the giant tobacco companies and protect their
families.

These are unique individuals who will choke to death with emphysema,
wither away with lung cancer, or suffer the severe pain of a heart
attack.  If urgent action is not taken, tobacco will soon end even more
lives than the combined total of all to be killed by AIDS, tuberculosis,
maternal deaths in childbirth, automobile accidents, homicides and
suicides.

In preparing this bill, I have worked closely with federal and state
authorities to develop measures that will help them better crack down on
tobacco tax evaders.

This bill will enable law enforcement officials to share information
with foreign countries about international smuggling and authorize new
tools to combat smuggling within the US.

To prevent diversion, this bill requires that packages of tobacco
products be labeled to facilitate tracing them and verifying their
manufacturing source.  Packages for export must also be clearly labeled
"for export" to prevent illegal reentry.

Additionally, this bill will close the distribution chain and prevent
transfers from the legal market by requiring retailers and wholesalers
to maintain documents that law enforcement needs to monitor tobacco
shipments.

Essential Action and other public interest groups indicated in a
briefing paper by the Framework Convention on Tobacco Control Alliance
that requiring wholesalers, manufacturers and import-export businesses
to be licensed would be one of the "most effective interventions against
large-scale smuggling."  With the additional permitting requirements in
this bill, the US would meet this objective.

While, unfortunately, the Bush Administration has been largely an
obstacle rather than a force for constructive, international action to
address nicotine addiction, I am pleased that next week in New York
City, the US will host the International Conference on Illicit Tobacco
Trade.  I encourage the Administration to actively support this Tobacco
Smuggling Eradication Act, which the American Lung Association and a
number of other major public health groups have said "makes good sense
as a matter of law enforcement, health policy and international
leadership."   We must act now to stop the smuggling and stop the
mugging of the world's children through nicotine addition promoted by
big tobacco companies.

--------------0BEE7C3B3099B1998796831A
Content-Type: text/html; charset=us-ascii
Content-Transfer-Encoding: 7bit

<!doctype html public "-//w3c//dtd html 4.0 transitional//en">
<html>
Reminder: The Tobacco Smuggling Eradication
Act has bill number: HR 5264. You can view the text of the bill, its status
and co-sponsors at <A HREF="http://thomas.loc.gov">http://thomas.loc.gov</A>
Speech by Rep. Lloyd Doggett,
 Floor of the House of Representatives
 July 23, 2002
Mr. Speaker, this week, with the support
of over 90
of our colleagues, I am introducing major law enforcement legislation both
to prevent crime and to promote the health of Americans and people around
the world.&nbsp; The Tobacco Smuggling Eradication Act seeks to slow illicit
trafficking in tobacco -- the world's most widely smuggled, legal consumer
product.
Across America, this year alone 17 states
have already approved cigarette tax hikes.&nbsp; Increasing the price of
cigarettes is one of the most effective ways to discourage children from
beginning a lifetime of addiction.&nbsp; While each tax increase advances
public health, it also increases the incentives for smuggling cheaper,
"tax-free" black-market tobacco.
At a time of tight budgets, state and federal
authorities in the United States are suffering losses of more than $1.5
billion annually in evaded cigarette taxes.&nbsp; By cracking down on smuggling,
we can collect this much-needed revenue.&nbsp; With prices rising as high
as $7 a pack in New York City, the need is even greater to stop those who
offer smokers a nicotine hit without a tax hit.
The same incentives that exist here in
America exist around the world when American tobacco is exported -- from
Canada to Iraq, from China to Columbia.&nbsp; Of all cigarettes manufactured
within the United States for export, it is estimated that from 1 in every
3 to 1 in every 4 are in fact sold illegally, without collecting taxes.
Internal tobacco company documents have
revealed that big tobacco companies themselves know that their cigarettes
are sold to distributors and agents who will smuggle them illegally.&nbsp;
In too many cases they have carefully overseen and even directed the actions
of smuggling intermediaries, ensuring that consumers have access to lower,
black-market prices, thereby encouraging consumption and building market
share.
The health consequences of smuggling are
severe because the number of nicotine-addicted children and poor increases
dramatically with the availability of cheap tobacco.&nbsp; The World Bank
reports that, within the next 2 decades, tobacco will become the single
biggest cause of premature death worldwide, accounting for 10 million deaths
each year.&nbsp;
That is the equivalent of 70 jet planes crashing every single day, and
70 percent of these deaths will occur in developing countries, that are
least able to fend off the giant tobacco companies and protect their families.
These are unique individuals who will choke
to death with emphysema, wither away with lung cancer, or suffer the severe
pain of a heart attack.&nbsp; If urgent action is not taken, tobacco will
soon end even more lives than the combined total of all to be killed by
AIDS, tuberculosis, maternal deaths in childbirth, automobile accidents,
homicides and suicides.
In preparing this bill, I have worked closely
with federal and state authorities to develop measures that will help them
better crack down on tobacco tax evaders.
This bill will enable law enforcement officials
to share information with foreign countries about international smuggling
and authorize new tools to combat smuggling within the US.
To prevent diversion, this bill requires
that packages of tobacco products be labeled to facilitate tracing them
and verifying their manufacturing source.&nbsp; Packages for export must
also be clearly labeled "for export" to prevent illegal reentry.
Additionally, this bill will close the
distribution chain and prevent transfers from the legal market by requiring
retailers and wholesalers to maintain documents that law enforcement needs
to monitor tobacco shipments.
Essential Action and other public interest
groups indicated in a briefing paper by the Framework Convention on Tobacco
Control Alliance that requiring wholesalers, manufacturers and import-export
businesses to be licensed would be one of the "most effective interventions
against large-scale smuggling."&nbsp; With the additional permitting requirements
in this bill, the US would meet this objective.
While, unfortunately, the Bush Administration
has been largely an obstacle rather than a force for constructive, international
action to address nicotine addiction, I am pleased that next week in New
York City, the US will host the International Conference on Illicit Tobacco
Trade.&nbsp; I encourage the Administration to actively support this Tobacco
Smuggling Eradication Act, which the American Lung Association and a number
of other major public health groups have said "makes good sense as a matter
of law enforcement, health policy and international leadership."&nbsp;&nbsp;
We must act now to stop the smuggling and stop the mugging of the world's
children through nicotine addition promoted by big tobacco companies.
 &nbsp;</html>

--------------0BEE7C3B3099B1998796831A--