In 2010, President Barack Obama signed into law the PACT Act to reduce the availability of tax-evading, low-cost cigarettes and smokeless tobacco over the internet and to increase government revenues by ensuring the collection of federal, state and local taxes on cigarettes and smokeless tobacco sold online. The law also aims to stop the sales of these products to kids and to prevent /reduce smoking and its health risks.
According to Becerra and Pestana, USPS consistently received reports from the California AG’s office, state and local officials about the strategy of online cigarette sellers to avoid enforcement of the PACT Act. U.S.-based online cigarette sellers are using international fulfillment centers and postal systems to send orders, which are then transferred into domestic mails upon reaching the United States. From there, USPS delivers those packages containing cigarettes and smokeless tobacco to recipients across the country.
In statement, AG Becerra said, “Accepting and delivering contraband cigarettes is not only a health hazard for our citizens but a detriment to our state’s economy.” He added that the California Department of Justice (DOJ) remains vigilant in stopping the smuggling of contraband cigarettes into the state.
