AWMA Submits Testimony and Attends Congressional Hearing on Illegal Internet Sales of Cigarettes
In Washington, DC last Friday to testify before the House Judiciary Committee’s Subcommittee on Crime, Terrorism and Homeland Security are (left) Steve Rosenthal, Consultant, and Arthur Katz, Executive Director of the New York State Association of Wholesale Marketers and Distributors.
AWMA’s Anne Holloway joined New York State Association of Wholesale Marketers and Distributors Executive Director, Arthur Katz, and Steve Rosenthal, Consultant, Glove Wholesale, at a hearing on Capitol Hill recently. The hearing, held on May 1 in the House Judiciary Committee’s Subcommittee on Crime, Terrorism and Homeland Security, was aimed at investigating illegal activities with respect to cigarette trafficking – particularly those involving illegal Internet sales of cigarettes.
Steve Rosenthal testified on behalf of the New York State Association of Wholesale Marketers and Distributors and – along with the testimony submitted by AWMA – provided the distributor’s perspective on this growing problem. Mr. Rosenthal, like AWMA, was speaking in favor of legislation – HR 4081 – that is aimed at combating the illegal sales of cigarettes via the Internet. Speaking on behalf of HR 4081, Mr. Rosenthal stated, “it is ironic that the Federal Government is called upon to increase state funding for anti-terrorism programs while New York State passes up one billion dollars annually in excise, sales and ancillary taxes with the unintended consequences of funding terrorists; adding to the very costs of these efforts.”
In AWMA’s testimony submitted for the hearing, our Association pointed out the informal study of this problem which we conducted in 2006. In prepared testimony, AWMA stated, “From our industry’s perspective, every sale of an illegal tobacco product over the Internet translates into a loss for responsible, legitimate, law-abiding distributors and retailers across the country. And, it’s not just our industry that’s impacted – states are losing millions of dollars each year in unpaid excise taxes and enforcement expenses. And, more important, many of the cigarettes sold over the Internet are ending up in the hands of under-age smokers because of the lack of safeguards inherent in these types of remote sales.”
HR 4081 must now be considered through a mark-up in the House Judiciary Committee’s Subcommittee on Crime. AWMA will continue to monitor this measures’ process and report to our members on any new developments.
Steve Rosenthal (center) testified Friday on behalf of the New York State Association of Wholesale Marketers and Distributors at a congressional hearing on illegal Internet cigarette sales. He was joined at the witness table by Matthew Myers (left), Campaign for Tobacco-Free Kids, and John Cooledge (right).
