Thursday 5 april 2012 4 05 /04 /Apr /2012 12:03

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THE federal government has formally rejected big tobacco's High Court claims that the commonwealth is actually acquiring the companies' brands through its new cigarette plain packaging laws. The government lodged its detailed submissions to the High Court today in response to the legal action launched by four big tobacco companies. In November last year, the government passed landmark laws forcing all cigarettes to be sold in drab olive-brown packs by December 2012. British American Tobacco, Phillip Morris, Imperial Tobacco Australia and Japan Tobacco International are now challenging the legislation in the High Court.

They believe the laws breach the Australian Constitution because they seek to acquire property - in the form of brand names - without providing compensation. But the government insists it is restricting the use of brand names and logos, not taking them over.In the submissions filed today, the government rejected the tobacco companies' main argument. "The argument is unsustainable," the commonwealth said. "What an owner gains by registration of a trademark is relatively no more than a monopoly right to exclude others from using the mark without the owner's authority." The submissions rebuked British American Tobacco Australia for downplaying the harm of tobacco.

"BATA fail to capture the gravity of the harm that is caused by smoking to members of the public and public health," the submissions said. The government argues packaging has become the principal means for cigarette companies to promote their products following restrictions on advertising. "The primary job of the package is to create a desire to purchase and try," the submissions said. "The actual purchase of cigarettes does not exhaust the promotional utility of the packaging. Unlike many other consumer products, cigarette packaging is displayed each time the product is used." It argues the packaging is designed with a high degree of "social visibility".

"Minute attention is paid to all aspects of the packet, including colour, font style, placement, orientation, number and thickness of stripes and texture of the packaging wrapper," the submissions said. "Colours such as pink, white and yellow, (conveying qualities of freshness, feminity, cleanliness, purity and health) as well as slimmer packs tend to appeal to young women and lighter colours are also perceived by many consumers (quite mistakenly) to present a lower health risk."

It quotes the 2012 Surgeon General report that states: "Plain packaging makes smoking less appealing." Attorney General Nicola Roxon said the government will vigorously defend the validity of the plain packaging laws and rejects the tobacco companies' claims that the measures are unconstitutional. "Plain packaging of tobacco products is a legitimate measure designed to achieve a fundamental objective - the protection of public health," Ms Roxon said.

By Laura
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Thursday 5 april 2012 4 05 /04 /Apr /2012 10:51

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The number of people caught smuggling untaxed cigarettes into Maryland is on the rise, and it's costing the state hundreds of thousands of dollars in lost tax revenue, authorities say. "If they can buy them in Virginia or the Carolinas for $5 a pack, they can go up to New York and sell them for $15 a pack, so they triple their money," says Det. Sgt. Richard Klebon with the Berlin Barrack of the Maryland State Police. Law enforcement efforts ultimately aim to keep the tax dollars in Maryland; the state levies a $2-per-pack tax. And, as far as the Comptroller of Maryland is concerned, cigarette smuggling is big business with little risk. Comptroller Peter Franchot "has always been a strong proponent for aggressive enforcement of Maryland's tax laws," said spokeswoman Christine Feldmann.

"It's a matter of fairness. Criminals who knowingly violate Maryland's tax laws hurt small businesses who follow the rules. It's about leveling the playing field." She said typically, when smugglers are caught, they can face criminal charges of transporting and possession of untaxed cigarettes. The transporting charge is a felony that carries a fine of $50 per carton, as well as the threat of up to two years in prison. Possession is a misdemeanor and can bring up to a $1,000 fine and a year in prison. "It's happening every day because the penalty if you get caught is not very bad," she said. As a result, "we've had multiple repeat offenders." So far, State Police at the Berlin Barrack are on track to seize about four times more cigarettes than last year: They had four arrests that yielded 1,737 cartons in 2011. This year, they've already made five arrests, and seized about 1,600 cartons.

Troopers out of Berlin made two arrests in 2009 for 88 cartons. No arrests were made in 2008 or 2010, Klebon said. It's against the law to enter Maryland with more than two packs of cigarettes purchased out-of-state. Having any more untaxed smokes than that, technically the law says you're transporting untaxed contraband. The Comptroller is sponsoring legislation to increase the smuggling penalties. Bills pending in Annapolis would increase penalties to a per-carton $150 fine and imprisonment for up to two years -- and that's just for first-time offenders. Repeat offenders could, upon conviction, face a fine of $300 for each carton and up to five years in jail. The ways in which people transport dozens of cartons may vary, Klebon said.

Sometimes, they'll just have great big black trash bags tied up in the back seat. One man was caught having built a secret compartment out of wood paneling in a commercial-type van. In a recent traffic stop, Klebon says one of his troopers stopped a man who had packed 690 cartons of cigarettes into his minivan. "The guy could have been an engineer -- there wasn't a cubic inch of space wasted," he said. "They packed it right level with the windows, then put blankets on top, then would put, like, a bag or two of groceries on top." Most people don't travel like that, so any vehicles obviously filled with boxes -- and are spotted crossing the Maryland's state line from the south -- become targets for a trained police eye, Klebon also said.

Klebon said he's not thrilled by the slap on the wrist some people get when caught smuggling. "Given the propensity for people to do it, the punishment should fit the crime. If they tighten up the penalties, it might dissuade people from doing it." The thousands of cigarettes confiscated by police are not sent back into retail circulation, but instead sit in evidence rooms "for a long time" before the case even makes it to a courtroom, and are typically destroyed, Feldmann said. It's not just Worcester County that's a cigarette-smuggling hot spot. Feldmann said "pretty much everywhere that a county borders a low-tax state" is a target, like Cecil County, Prince George's County, and western Maryland. In Somerset County, authorities are also catching more cigarette smugglers. Lt. Krah Plunkert, State Police barrack commander in Princess Anne, said his troopers are seeing a significant increase in the transport of untaxed cigarettes through the state.

On Wednesday alone, while conducting specific enforcement to catch cigarette smugglers, they made two arrests and seized about 700 cartons, bringing the total in 2012 to eight arrests and about 1,700 cartons. Last year, they had just two seizures, for about 900 cartons. Plunkert says the economy is the culprit, "driving these individuals to make the quick buck," he said. Police believe smugglers are taking clear north-south routes to unload their cargo in New York City. There, the combined city and state tax comes to $6.46 a pack, and a carton can cost about $300. A carton bought in the south can run about $40, and re-sold for a tidy sum.

"You figure, for a day-long operation, it's a pretty significant profit," Plunkert said. He also says past investigations lead them to believe that cigarette smuggling is funding elements of organized crime, " like your bootlegger with the alcohol, back in the day." "There has to be some type of group that puts it together," he said. "I don't think they're just putting the money back in their pocket and purchasing houses and nice vehicles."

By Laura
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Thursday 15 march 2012 4 15 /03 /Mar /2012 15:27

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For many years the Fond du Lac County Tobacco Control Coalition, now known as Five Counties for Tobacco-Free Living, has been working hard to reduce tobacco use rates in Fond du Lac County and more recently, in our five-counties area and across the state of Wisconsin. The Fond du Lac County Tobacco Prevention Control Coalition, with the support of the Fond du Lac County Health Department, has supported and promoted best practices recommended by the CDC and was instrumental in educating the people of Fond du Lac on the need for safe, clean, indoor air in all public places. This resulted in the passage of a citywide Smoke-Free Restaurant Ordinance in 1998 and passage of a Comprehensive Smoke-Free Ordinance that covered all work and public places in 2008, prior to the passage of the state of Wisconsin going smoke free.

That same leadership continues with the current Five Counties for Tobacco-Free Living Coalition by members working hard to decrease tobacco sales to minors, supporting FACT Fighting Against Corporate Tobacco youth advocacy groups in our five-counties area, educating local and state leaders on the tobacco prevention and control issues, working with workplaces on the development and implementation of tobacco-free policies, and working hard to prevent kids from starting tobacco use and by helping adults quit tobacco. On Friday, Feb. 24, tobacco prevention efforts in Wisconsin were weakened when a Wisconsin judge ruled that the roll your own (RYO) cigarette stores can continue to dodge the state's cigarette tax and therefore have the ability to sell a carton of cigarettes for $30 instead of the average price of $50 to $60. Cigarettes made in a RYO store should not be differentiated from those made in a factory; and they should be taxed the same.

Untaxed RYO cigarettes are harming our communities since cheaper cigarettes encourage kids to start smoking and by not maintaining economic pressure (price) on adults who smoke to quit. In Wisconsin, tobacco already costs every household almost $2,000 a year in health-care costs and lost productivity. Coalitions have worked hard to lower these costs by helping adults quit and preventing tens of thousands of kids from picking up this lifelong addiction. Tobacco control coalitions are severely underfunded by all reasonable estimates of resources needed to counteract the rich and sophisticated tobacco industry. The Tobacco Control Program receives less than 1 percent of the amount the state collects in tobacco taxes. The funding comes from state general revenues and is in no way coupled to taxes collected on tobacco products. Taxing the RYO cigarettes isn't just a matter of fairness — it's a matter of keeping our kids and communities healthy and strong.

By Laura
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Thursday 15 march 2012 4 15 /03 /Mar /2012 15:25

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New questions are being raised about the safety of electronic cigarettes-- after a man in Florida says a battery exploded in his mouth. The man lost several teeth and part of his tongue. Batteries in some of the cigarettes are similar to those found in cell phones and laptops. Some business owners say the cigarettes are safe when they're not tampered with.

"If this was a case where there were even two or even three incidents of batteries exploding that would be caused to raise an eyebrow, but this is one out of millions. I would the odds of having an electronic cigarette blow up on you like this guy did are probably about the same odds as getting hit by lightning....' claims Dave Dorsey, owner of Evo Vapor. But some former smokers who have used the devices have also ran into problems.

"The next thing I know, I've got nicotine juice running all through my mouth. It's running down my face. Like I said, I still got just a little bit of the chemical burn left on my lip....." Frank Curtis, former user of E-Cigarette. The FDA is in the process of developing regulations for electronic cigarettes.

By Laura
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Thursday 15 march 2012 4 15 /03 /Mar /2012 15:21

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The Commerce Ministry has sought opinion from finance and industry ministries over a demand from tobacco farmers association to tighten import of cigarettes into the country. In an inter-ministerial communication, the Directorate General of Foreign Trade (DGFT) has pointed out that Consortium of Indian farmers Associations (CIFA) has demanded to remove import of cigarette under open general license (OGL).

"The association has pointed out alarming increase of imports due to OGL and also growth of smuggled and controlled cigarettes resulting in Indian tobacco farmers are getting low price for their product. CIFA has therefore requested to remove import of cigarette under OGL," the DGFT has said. India's cigarettes import has increased to Rs 5,548.85 lakh in 2010-11 from Rs 4,773.77 lakh in 2009-10. During April-June this fiscal, imports stood at Rs 1,837.65 lakh. CIFA in its letter to the Commerce and Industry Minister Anand Sharma has said that international cigarette makers are trying to push their surplus production into India through legal and illegal routes.

"It appears that in the recent past, cigarette imports in to our country is alarmingly increasing since the cigarettes are classified under OGL. Further, we have also came to know that under the garb of import of legal cigarettes, the growth of smuggled and contraband cigarettes which is estimated to be around Rs 1,900 crore this year," it said. The association said that according to reports, 17 billion cigarette sticks are smuggled into Indian every year, making it the sixth highest consumer of smuggled cigarettes in the world.

"Domestic manufacturers who are totally depending on domestically grown tobacco are not able to utilise more of our tobacco due to increase in legal and illegal import of cigarettes," it added. Further, it said that the huge price differential between India and neighbouring countries is also one of the reasons for the increase in smuggling of cigarettes.

By Laura
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