185 
‘‘(5) RECORDKEEPING BY RETAILERS.—The Sec-
retary shall not require any retailer to maintain 
records relating to individual purchasers of tobacco 
products for personal consumption. 
‘‘(c) RECORDS INSPECTION.—If the Secretary has a 
reasonable belief that a tobacco product is part of an illicit 
trade or smuggling or is a counterfeit product, each person 
who manufactures, processes, transports, distributes, re-
ceives, holds, packages, exports, or imports tobacco products 
shall, at the request of an officer or employee duly des-
ignated by the Secretary, permit such officer or employee, 
at reasonable times and within reasonable limits and in 
a reasonable manner, upon the presentation of appropriate 
credentials and a written notice to such person, to have ac-
cess to and copy all records (including financial records) 
relating to such article that are needed to assist the Sec-
retary in investigating potential illicit trade, smuggling, or 
counterfeiting of tobacco products. 
‘‘(d) KNOWLEDGE OF ILLEGAL TRANSACTION.— 
‘‘(1) NOTIFICATION.—If the manufacturer or dis-
tributor of a tobacco product has knowledge which 
reasonably supports the conclusion that a tobacco 
product manufactured or distributed by such manu-
facturer or distributor that has left the control of such 
person may be or has been— 
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186 
‘‘(A) imported, exported, distributed, or of-
fered for sale in interstate commerce by a person 
without paying duties or taxes required by law; 
or 
‘‘(B) imported, exported, distributed, or di-
verted for possible illicit marketing, 
the manufacturer or distributor shall promptly notify 
the Attorney General and the Secretary of the Treas-
ury of such knowledge. 
‘‘(2) KNOWLEDGE
DEFINED.—For purposes of 
this subsection, the term ‘knowledge’ as applied to a 
manufacturer or distributor means— 
‘‘(A) the actual knowledge that the manu-
facturer or distributor had; or 
‘‘(B) the knowledge which a reasonable per-
son would have had under like circumstances or 
which would have been obtained upon the exer-
cise of due care.’’. 
SEC. 302. STUDY AND REPORT. 
(a) STUDY.—The Comptroller General of the United 
States shall conduct a study of cross-border trade in tobacco 
products to— 
(1) collect data on cross-border trade in tobacco 
products, including illicit trade and trade of counter-
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187 
feit tobacco products and make recommendations on 
the monitoring of such trade; 
(2) collect data on cross-border advertising (any 
advertising intended to be broadcast, transmitted, or 
distributed from the United States to another coun-
try) of tobacco products and make recommendations 
on how to prevent or eliminate, and what technologies 
could help facilitate the elimination of, cross-border 
advertising; and 
(3) collect data on the health effects (particularly 
with respect to individuals under 18 years of age) re-
sulting from cross-border trade in tobacco products, 
including the health effects resulting from— 
(A) the illicit trade of tobacco products and 
the trade of counterfeit tobacco products; and 
(B) the differing tax rates applicable to to-
bacco products. 
(b) REPORT.—Not later than 18 months after the date 
of enactment of this Act, the Comptroller General of the 
United States shall submit to the Committee on Health, 
Education, Labor, and Pensions of the Senate and the Com-
mittee on Energy and Commerce of the House of Represent-
atives a report on the study described in subsection (a). 
(c) DEFINITION.—In this section: 
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188 
(1) The term ‘‘cross-border trade’’ means trade 
across a border of the United States, a State or Terri-
tory, or Indian country. 
(2) The term ‘‘Indian country’’ has the meaning 
given to that term in section 1151 of title 18, United 
States Code. 
(3) The terms ‘‘State’’ and ‘‘Territory’’ have the 
meanings given to those terms in section 201 of the 
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
321). 
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Union Calendar No. 485 
110TH CONGRESS 
2D SESSION 
H. R. 1108 
[Report No. 110–762] 
A BILL 
To protect the public health by providing the Food 
and Drug Administration with certain authority 
to regulate tobacco products. 
JULY 17, 2008 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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