II

105TH CONGRESS

1ST SESSION S. 1060

To restrict the activities of the United States with respect to foreign laws

that regulate the marketing of tobacco products and to subject cigarettes

that are exported to the same restrictions on labeling as apply to the

sale or distribution of cigarettes in the United States.

IN THE SENATE OF THE UNITED STATES

JULY 23, 1997

Mr. LAUTENBERG (for himself, Mr. WYDEN, Mr. DURBIN, and Mr. HARKIN)

introduced the following bill; which was read twice and referred to the

Committee on Commerce, Science, and Transportation

A BILL

To restrict the activities of the United States with respect

to foreign laws that regulate the marketing of tobacco

products and to subject cigarettes that are exported to

the same restrictions on labeling as apply to the sale

or distribution of cigarettes in the United States.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Worldwide Tobacco

5 Disclosure Act of 1997’’.

6 SEC. 2. DEFINITIONS.

7 In this Act:
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1 (1) CIGARETTE.—The term ‘‘cigarette’’

2 means—

3 (A) any roll of tobacco wrapped in paper

4 or in any substance not containing tobacco

5 which is to be burned,

6 (B) any roll of tobacco wrapped in any

7 substance containing tobacco which, because of

8 its appearance, the type of tobacco used in the

9 filler, or its packaging and labeling is likely to

10 be offered to, or purchased by consumers as a

11 cigarette described in subparagraph (A),

12 (C) little cigars which are any roll of to13 bacco wrapped in leaf tobacco or any substance

14 containing tobacco (other than any roll of to15 bacco which is a cigarette within the meaning

16 of subparagraph (A)) and as to which 1000

17 units weigh not more than 3 pounds, and

18 (D) loose rolling tobacco and papers or

19 tubes used to contain such tobacco.

20 (2) DOMESTIC CONCERN.—The term ‘‘domestic

21 concern’’ means—

22 (A) any individual who is a citizen, na23 tional, or resident of the United States; and

24 (B) any corporation, partnership, associa25 tion, joint-stock company, business trust, unin-
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1 corporated organization, or sole proprietorship

2 which has its principal place of business in the

3 United States, or which is organized under the

4 laws of a State of the United States or a terri5 tory, possession, or commonwealth of the Unit6 ed States.

7 (3) NONDISCRIMINATORY LAW OR REGULA8 TION.—The term ‘‘nondiscriminatory law or regula9 tion’’ means a law or regulation of a foreign country

10 that adheres to the principle of national treatment

11 and applies no less favorable treatment to goods that

12 are imported into that country than it applies to like

13 goods that are the product, growth, or manufacture

14 of that country.

15 (4) PACKAGE.—The term ‘‘package’’ means a

16 pack, box, carton, or other container of any kind in

17 which cigarettes or other tobacco products are of18 fered for sale, sold, or otherwise distributed to cus19 tomers.

20 (5) SALE OR DISTRIBUTION.—The term ‘‘sale

21 or distribution’’ includes sampling or any other dis22 tribution not for sale.

23 (6) STATE.—The term ‘‘State’’ includes, in ad24 dition to the 50 States, the District of Columbia,

25 Guam, the Commonwealth of Puerto Rico, the Com-
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1 monwealth of the Northern Mariana Islands, the

2 Virgin Islands, American Samoa, the Republic of the

3 Marshall Islands, the Federated States of Microne4 sia, and the Republic of Palau.

5 (7) TOBACCO PRODUCT.—The term ‘‘tobacco

6 product’’ means—

7 (A) cigarettes;

8 (B) little cigars;

9 (C) cigars as defined in section 5702 of

10 the Internal Revenue Code of 1986;

11 (D) pipe tobacco;

12 (E) loose rolling tobacco and papers used

13 to contain such tobacco;

14 (F) products referred to as spit tobacco;

15 and

16 (G) any other form of tobacco intended for

17 human use or consumption.

18 (8) UNITED STATES.—The term ‘‘United

19 States’’ includes the States and installations of the

20 Armed Forces of the United States located outside

21 a State.
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1 SEC. 3. RESTRICTIONS ON NEGOTIATIONS REGARDING

2 FOREIGN LAWS REGULATING TOBACCO

3 PRODUCTS.

4 No funds appropriated by law may be used by any

5 officer, employee, department, or agency of the United

6 States—

7 (1) to seek, through negotiation or otherwise,

8 the removal or reduction by any foreign country of

9 any nondiscriminatory law or regulation, or any pro10 posed nondiscriminatory law or regulation, in that

11 country that restricts the advertising, manufacture,

12 packaging, taxation, sale, importation, labeling, or

13 distribution of tobacco products; or

14 (2) to encourage or promote the export, adver15 tising, manufacture, sale, or distribution of tobacco

16 products.

17 SEC. 4. CIGARETTE EXPORT LABELING.

18 (a) LABELING REQUIREMENTS FOR EXPORT OF

19 CIGARETTES.—

20 (1) IN GENERAL.—It shall be unlawful for any

21 domestic concern to export from the United States,

22 or to sell or distribute in, or export from, any other

23 country, any cigarettes whose package does not con24 tain a warning label that—

25 (A) complies with Federal labeling require26 ments for cigarettes manufactured, imported, or
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1 packaged for sale or distribution within the

2 United States; and

3 (B) is in the primary language of the coun4 try in which the cigarettes are intended for con5 sumption.

6 (2) LABELING FORMAT.—Federal labeling for7 mat requirements shall apply to a warning label de8 scribed in paragraph (1) in the same manner, and

9 to the same extent, as such requirements apply to

10 cigarettes manufactured, imported, or packaged for

11 sale or distribution within the United States.

12 (3) ROTATION OF LABELING.—Federal rotation

13 requirements for warning labels shall apply to a

14 warning label described in paragraph (1) in the

15 same manner, and to the same extent, as such re16 quirements apply to cigarettes manufactured, im17 ported, or packaged for sale or distributed within

18 the United States.

19 (4) WAIVERS.—

20 (A) IN GENERAL.—The President may

21 waive the labeling requirements required by this

22 Act for cigarettes, if the cigarettes are exported

23 to a foreign country included in the list de24 scribed in subparagraph (B) and if that country

25 is the country in which the cigarettes are in-
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1 tended for consumption. A waiver under this

2 subparagraph shall be in effect prior to the ex3 portation of any cigarettes not in compliance

4 with the requirements of this section by a per5 son to a foreign country included in the list.

6 (B) LIST OF ELIGIBLE COUNTRIES FOR

7 WAIVER.—

8 (i) IN GENERAL.—Not later than 90

9 days after the date of enactment of this

10 Act, the President shall develop and pub11 lish in the Federal Register a list of for12 eign countries that have in effect require13 ments for the labeling of cigarette pack14 ages substantially similar to or more strin15 gent than the requirements for labeling of

16 cigarette packages set forth in paragraphs

17 (1) through (3). The President shall use

18 the list to grant a waiver under subpara19 graph (A).

20 (ii) UPDATE OF LIST.—The President

21 shall—

22 (I) update the list described in

23 clause (i) to include a foreign country

24 on the list if the country meets the

25 criteria described in clause (i), or to
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1 remove a foreign country from the list

2 if the country fails to meet the cri3 teria; and

4 (II) publish the updated list in

5 the Federal Register.

6 (b) PENALTIES.—

7 (1) FINE.—Any person who violates the provi8 sions of subsection (a) shall be fined not more than

9 $100,000 per day for each such violation. Any per10 son who knowingly reexports from or transships

11 cigarettes through a foreign country included in the

12 list described in subsection (a)(4)(B) to avoid the re13 quirements of this Act shall be fined not more than

14 $150,000 per day for each such occurrence.

15 (2) INJUNCTION PROCEEDINGS.—The district

16 courts of the United States shall have jurisdiction,

17 for cause shown, to prevent and restrain violations

18 of subsection (a) upon the application of the Attor19 ney General of the United States.

20 (c) REPEAL.—Section 12 of the Federal Cigarette

21 Labeling and Advertising Act (15 U.S.C. 1340) is re22 pealed.

23 (d) REGULATORY AUTHORITY.—Not later than 90

24 days after the date of enactment of this Act, the President
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1 shall promulgate such regulations and orders as may be

2 necessary to carry out this section.

3 (e) EFFECTIVE DATE.—The provisions of subsections

4 (a) through (c) shall take effect upon the effective date

5 of the regulations promulgated under subsection (d).

Æ