normally kept. The Comptroller General
shall have access to all books, accounts,
records, reports, files, and all other papers,
things, or property belonging to or in use
by ACT pertaining to its financial trans-
actions and necessary to facilitate the
audit. All books, accounts, records, reports,
files, papers, and property of ACT shall re-
main in the possession and custody of
ACT.
(ii) REPORT.—A report of each audit
shall be made by the Comptroller General
to Congress. A copy of each report shall be
furnished to the President and to ACT at
the time the report is submitted to Con-
gress.
(6) RECORDKEEPING.—
(A) IN GENERAL.—ACT shall ensure that
each recipient of assistance from ACT under
this section keeps such records as may be rea-
sonably necessary to fully disclose the amount
and the disposition by such recipient of the pro-
ceeds of such assistance, the total cost of the
project or undertaking in connection with which
such assistance is given or used, and the
amount and nature of that portion of the cost
of the project or undertaking supplied by other
sources, and such other records as will facilitate
an effective audit.
(B) ACCESS.—ACT shall ensure that it, or
any of its duly authorized representatives, shall
have access for the purpose of audit and exam-
ination to any books, documents, papers, and
records of each recipient of assistance from
ACT that are pertinent to assistance provided
through ACT under this section.
TITLE IV—PREVENTION OF
TOBACCO SMUGGLING
SEC. 401. DEFINITIONS.
(a) INCORPORATION OF CERTAIN DEFINITIONS.—In
this title, the terms ‘‘cigar’’, ‘‘cigarette’’, ‘‘person’’, ‘‘pipe
tobacco’’, ‘‘smokeless tobacco’’, ‘‘State’’, ‘‘tobacco prod-
uct’’, and ‘‘United States’’ shall have the meanings given
such terms in sections 5702(a), 5702(b), 7701(a)(1),
5702(o), 5702(n)(1), 3306(j)(1), 5702(c), and 3306(j)(2)
respectively of the Internal Revenue Code of 1986.
(b) OTHER DEFINITIONS.—In this title:
(1) AFFILIATE.—The term ‘‘affiliate’’ means
any one of 2 or more persons if 1 of such persons
has actual or legal control, directly or indirectly,
whether by stock ownership or otherwise, of the
other or others of such persons, and any one of 2
or more persons subject to common control, actual
or legal, directly or indirectly, whether by stock own-
ership or otherwise.
(2) INTERSTATE OF FOREIGN COMMERCE.—The
term ‘‘interstate or foreign commerce’’ means com-
merce between any State and any place outside
thereof, or commerce within any Territory or the
District of Columbia, or between points within the
same State but through any place outside thereof.
(3) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of the Treasury.
(4) PACKAGE.—The term ‘‘package’’ means the
innermost sealed container irrespective of the mate-
rial from which such container is made, in which a
tobacco product is placed by the manufacturer and
in which such tobacco product is offered for sale to
a member of the general public.
(5) RETAILER.—The term ‘‘retailer’’ means any
dealer who sells, or offers for sale, any tobacco prod-
uct to any person other than a wholesaler.
SEC. 402. TOBACCO PRODUCT LABELING REQUIREMENTS.
(a) IN GENERAL.—It shall be unlawful for any per-
son to sell or ship or deliver for sale or shipment, or other-
wise introduce in interstate or foreign commerce, to re-
ceive therein, or to remove from customs custody for use,
any tobacco product unless such product is packaged and
labeled in conformity with this section.
(b) LABELING.—
(1) IDENTIFICATION.—Not later than 1 year
after the date of enactment of this title, the Sec-
retary shall promulgate regulations that require each
manufacturer of tobacco products to legibly print a
unique serial number on all packages of tobacco
products manufactured for sale or distribution. Such
serial number shall be designed to enable the Sec-
retary to identify the manufacturer of the product,
and the location and date of manufacture. The Sec-
retary shall determine the size and location of the
serial number.
(2) COUNTRY OF FINAL DESTINATION.—Each
package of a tobacco product that is exported shall
be labeled with the name of the country of final des-
tination. The Secretary shall promulgate regulations
to determine the size and location of the label and
under what circumstances a waiver of this para-
graph shall be granted.
(c) PROHIBITION ON ALTERATION.—It shall be un-
lawful for any person to alter, mutilate, destroy, obliterate,
or remove any mark or label required under this title upon
a tobacco product in or affecting commerce, except as au-
thorized by Federal law or except pursuant to regulations
of the Secretary authorizing relabeling for purposes of
compliance with the requirements of this section or of
State law.
SEC. 403. REQUIREMENTS FOR THE TRACKING OF TO-
BACCO PRODUCTS.
(a) POSTING OF BOND.—
(1) IN GENERAL.—It shall be unlawful for any
person to export any tobacco product unless such
person—
(A) has posted with the Secretary a to-
bacco product bond in accordance with this sec-
tion for such product that contains a disclosure
of the country to which such product will be ex-
ported; and
(B) receives a written statement from the
recipient of the tobacco products involved that
such person—
(i) will not knowingly and willfully vio-
late any law or regulation of such country
with respect to such products; and
(ii) has never been convicted of any
offense with respect to tobacco products.
(2) REGULATIONS.—The Secretary shall pro-
mulgate regulations that determine the frequency
and the amount of each bond that must be posted
under paragraph (1), but in no case shall such
amount be less than an amount equal to the Federal
tax imposed under chapter 52 of the Internal Reve-
nue Code of 1986 on the value of the shipment of
the products involved if such products were con-
sumed within the United States.
(b) RETURN OF BOND.—The Secretary shall return
a bond posted under subsection (a) upon a determination
by the Secretary (based on documentation provided by the
person who posted the bond in accordance with regulations
promulgated by the Secretary) that the tobacco products
to which the bond applies—
(1) have been received in the country of final
destination as designated in the bond; or
(2) have been stolen or destroyed.
SEC. 404. TOBACCO PRODUCT PERMITS.
(a) IN GENERAL.—Not later than 1 year after the
date of enactment of this title, the Secretary shall estab-
lish a program under which tobacco product permits are
issued to persons desiring to sell or ship, or deliver for
sale or shipment, or otherwise introduce in interstate or
SEC. 405. PROHIBITIONS.
(a) IMPORTATION AND SALE.—It shall be unlawful,
except pursuant to a permit issued by the Secretary under
section 504—
(1) to engage in the business of importing into
the United States tobacco products; or
(2) for any person so engaged to sell, offer, or
deliver for sale, contract to sell, or ship, in or affect-
ing commerce, directly or indirectly or through affili-
ate, tobacco products so imported.
(b) MANUFACTURE AND SALE.—It shall be unlawful,
except pursuant to a permit issued by the Secretary under
section 504—
(1) to engage in the business of manufacturing,
packaging or warehousing tobacco products; or
(2) for any person so engaged to sell, offer, or
deliver for sale, contract to sell, or ship, in interstate
or foreign commerce, directly or indirectly or
through an affiliate, tobacco products so manufac-
tured, packaged or warehoused.
(c) WHOLESALE.—It shall be unlawful, except pursu-
ant to a permit issued by the Secretary under section
504—
(1) to engage in the business of purchasing for
resale at wholesale tobacco products; or
(2) for any person so engaged to receive or sell,
offer or deliver for sale, contract to sell, or ship, in
interstate or foreign commerce, directly or indirectly
or through an affiliate, tobacco products so pur-
chased.
(d) EFFECTIVE DATE.—The provisions of this sec-
tion shall become effective on the date that is 180 days
after the date of enactment of this title.
SEC. 406. PRICING AND LABELING OF PRODUCTS SOLD ON
MILITARY INSTALLATIONS OR ON INDIAN
RESERVATIONS.
(a) MILITARY INSTALLATIONS.—
(1) IN GENERAL.—The Secretary of Defense, in
consultation with the Secretary, shall promulgate
regulations to limit the sale of tobacco products on
a military installation (as defined in section
2801(c)(2) of title 10, United States Code) to—
(A) with respect to cigarettes, 1 carton per
individual per day; and
(B) with respect to noncigarette tobacco
products, a reasonable amount per day as de-
termined appropriate by the Secretary of De-
fense under such regulations.
(2) LABEL.—The regulations under paragraph
(1) shall require that each package of a tobacco
product that is sold on a military installation be la-
beled as such. Such regulations shall include require-
ments for the size and location of the label.
(b) INDIAN TRIBES.—The Secretary, in consultation
with the Secretary of Interior, shall promulgate regula-
tions that require that each package of a tobacco product
that is sold on an Indian reservation (as defined in section
403(9) of the Indian Child Protection and Family Violence
Prevention Act (25 U.S.C. 3202(9))) be labeled as such.
Such regulations shall include requirements for the size
and location of the label.
SEC. 407. PROHIBITION AGAINST SALE OF TOBACCO PROD-
UCTS IN OR TO DUTY-FREE SHOPS OR FOR-
WARDING THROUGH OR MANUFACTURE IN
TRADE ZONES.
(a) DUTY-FREE SHOPS.—The Secretary shall pro-
mulgate regulations to enforce a reasonable per day limit
on the sale of tobacco products at duty-free shops.
(b) TRADE ZONES.—No person may forward through
or manufacture a tobacco product in any foreign trade
zone, as defined for purposes of the Act of June 18, 1934
(19 U.S.C. 81a et seq.).
SEC. 408. JURISDICTION; PENALTIES; COMPROMISE OF LI-
ABILITY.
(a) JURISDICTION.—The district courts of the United
States, and the United States court for any Territory or
of the District where the offense is committed or threat-
ened or of which the offender is an inhabitant or has its
principal place of business, are vested with jurisdiction of
any suit brought by the Attorney General in the name of
the United States, to prevent and restrain violations of
any of the provisions of this title.
(b) PENALTIES.—The provisions of section 3571 of
title 18, United States Code, shall apply to any person
convicted of violating any of the provisions of this title
as if such person were convicted of a felony under such
title.
(c) COMPROMISE OF LIABILITY.—The Secretary is
authorized, with respect to any violation of this title, to
compromise the liability arising with respect to a violation
of this title—
(1) upon payment of a sum not in excess of
$10,000 for each offense, to be collected by the Sec-
retary and to be paid into the Treasury as mis-
cellaneous receipts; and
(2) in the case of repetitious violations and in
order to avoid multiplicity of criminal proceedings,
upon agreement to a stipulation, that the United
States may, on its own motion upon 5 days’ notice
to the violator, cause a consent decree to be entered
by any court of competent jurisdiction enjoining the
repetition of such violation.
SEC. 409. AMENDMENTS TO THE CONTRABAND CIGARETTE
TRAFFICKING ACT.
(a) DEFINITIONS.—Section 2341 of title 18, United
States Code, is amended—
(1) in paragraph (2)—
(A) by striking ‘‘60,000’’ and inserting
‘‘30,000’’; and
(B) by inserting after ‘‘payment of ciga-
rette taxes,’’ the following: ‘‘or in the case of a
State that does not require any such indication
of tax payment, if the person in possession of
the cigarettes is unable to provide any evidence
that the cigarettes are moving legally in inter-
state commerce,’’; and
(2) in paragraph (4), by striking ‘‘and’’ at the
end;
(3) in paragraph (5), by striking the period and
inserting a semicolon; and
(4) by adding at the end the following:
‘‘(6) the term ‘tobacco product’ means cigars,
cigarettes, smokeless tobacco, and pipe tobacco (as
such terms are defined in section 501); and
‘‘(7) the term ‘contraband tobacco product’
means a quantity in excess of 30,000 of any tobacco
product that is manufactured, sold, shipped, deliv-
ered, transferred, or possessed in violation of Fed-
eral laws relating to the distribution of tobacco prod-
ucts.’’.
(b) UNLAWFUL ACTS.—Section 2342 of title 18,
United States Code, is amended—
(1) in subsection (a), by inserting ‘‘or contra-
band tobacco products’’ before the period;
(2) in subsection (b)—
(A) by striking ‘‘cigarettes’’ and inserting
‘‘tobacco products’’;
(B) by striking ‘‘60,000’’ and inserting
‘‘30,000’’; and
(C) by inserting before the period the fol-
lowing: ‘‘or knowingly to fail to maintain dis-
tribution records, alter or obliterate required
markings, or interfere with any inspection as
required or prohibited under Federal law with
respect to such quantity of tobacco products’’;
and
(3) by adding at the end the following:
‘‘(c) It shall be unlawful for any person knowingly
to transport tobacco products under a false bill of lading
or without any bill of lading.’’.
(c) RECORDKEEPING.—Section 2343 of title 18,
United States Code, is amended—
(1) by striking ‘‘cigarettes’’ each place that
such appears and inserting ‘‘tobacco products’’;
(2) in subsection (a), by striking ‘‘60,000’’ and
inserting ‘‘30,000’’;
(3) in subsection (b), by striking ‘‘60,000’’ and
inserting ‘‘30,000’’.
(d) PENALTIES.—Section 2344 of title 18, United
States Code, is amended—
(1) in subsection (c), by inserting ‘‘or contra-
band tobacco products’’ after ‘‘cigarettes’’; and
(2) by adding at the end the following:
‘‘(d) Any proceeds from the unlawful distribution of
tobacco products shall be subject to seizure and forfeiture
under this chapter.’’.
SEC. 410. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums
as may be necessary to carry out this title.
TITLE V—SENSE OF CONGRESS
SEC. 501. SENSE OF CONGRESS.
It is the sense of Congress that the United States
Government should support the development, adoption,
and implementation of the International Framework Con-
vention on Tobacco Control through all available re-
sources, including direct financial support, technical as-
sistance, and any other appropriate measure.
Æ