I 
116TH CONGRESS 
1ST SESSION H. R. 1642 
To authorize actions with respect to foreign countries engaged in illicit trade 
in tobacco products or their precursors, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 8, 2019 
Ms. JACKSON LEE (for herself and Mr. HUDSON) introduced the following bill; 
which was referred to the Committee on Foreign Affairs, and in addition 
to the Committee on the Judiciary, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To authorize actions with respect to foreign countries en-
gaged in illicit trade in tobacco products or their precur-
sors, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Combating the Illicit 
Trade in Tobacco Products Act’’. 
SEC. 2. DEFINITIONS. 
In this Act: 
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(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the Committee on Financial Services, 
the Committee on Foreign Affairs, and the 
Committee on the Judiciary of the House of 
Representatives; and 
(B) the Committee on Banking, Housing, 
and Urban Affairs, the Committee on Foreign 
Relations, and the Committee on the Judiciary 
of the Senate. 
(2) FOREIGN PERSON.—The term ‘‘foreign per-
son’’ means a person that is not a United States 
person. 
(3) ILLICIT TRADE IN TOBACCO PRODUCTS OR 
THEIR PRECURSORS.—The term ‘‘illicit trade in to-
bacco products or their precursors’’ means any prac-
tice or conduct prohibited by law that relates to pro-
duction, shipment, receipt, possession, distribution, 
sale, or purchase of tobacco products or their pre-
cursors, including any practice or conduct intended 
to facilitate such activity. 
(4) PERSON.—The term ‘‘person’’ means an in-
dividual or entity. 
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(5) 
UNITED
STATES
PERSON.—The 
term 
‘‘United States person’’ means— 
(A) a United States citizen or an alien law-
fully admitted for permanent residence to the 
United States; or 
(B) an entity organized under the laws of 
the United States or of any jurisdiction within 
the United States, including a foreign branch of 
such an entity. 
SEC. 3. FINDINGS. 
Congress makes the following findings: 
(1) The illicit trade in tobacco products or their 
precursors is a multibillion dollar business that fuels 
organized crime, fosters public corruption, under-
mines public health goals, and finances terrorist 
groups that threaten global security and stability. 
(2) According to an estimate by the World 
Health Organization, one in every 10 cigarettes 
smoked is illegal. 
(3) The Center for Public Integrity states, 
‘‘while one 40-foot container of cigarettes (con-
taining 10 million sticks) can be produced in China 
for just $100,000, the street value of such a con-
tainer smuggled into the United States is up to $2 
million.’’. 
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(4) According to the International Criminal Po-
lice Organization (commonly known as ‘‘Interpol’’), 
the trade in illicit cigarettes accounts for 11.6 per-
cent 
of 
global 
consumption, 
equaling 
657,000,000,000 cigarettes a year. 
(5) According to the Department of State re-
port entitled ‘‘The Global Illicit Trade in Tobacco: 
A Threat to National Security’’, cigarette smuggling 
enables corruption and undermines good governance. 
(6) According to that Department of State re-
port, illicit trade in tobacco products or their precur-
sors costs governments and taxpayers between 
$40,000,000,000 and $50,000,000,000 annually in 
tax revenues. 
(7) According to that Department of State re-
port, the illicit trade in tobacco products or their 
precursors facilitates other crimes and provides 
funding for additional criminal activities, including 
money laundering, bulk cash smuggling, and the 
trafficking in humans, weapons, drugs, antiquities, 
diamonds, and counterfeit goods. 
(8) The report entitled ‘‘Illicit Trade: Con-
verging Criminal Networks’’ by the Organisation for 
Economic Co-operation and Development stated that 
cigarettes present a high-profit margin and are 
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among the most commonly traded products on the 
black market due to the relative ease of production 
and movement, along with low detection rates and 
penalties. 
(9) According to the Department of State re-
port entitled, ‘‘The Global Illicit Trade in Tobacco: 
A Threat to National Security’’, illicit trade in to-
bacco products or their precursors can be transna-
tional, with proceeds earned domestically and sent 
overseas to finance attacks against United States in-
terests, or earned domestically by foreign actors who 
can operate more easily from within the country. 
(10) The Center for the Analysis of Terrorism 
reports that nearly 15 terrorist organizations 
throughout the world regularly have recourse in 
large proportions to smuggling and counterfeiting 
cigarettes to be financed, in particular the Pakistani 
Taliban, Lashkar-E–Taiba, Al-Qaida au Maghreb 
Islamique, Hezbollah, Hamas, the Revolutionary 
Armed Forces of Colombia, the Kurdistan Workers’ 
Party, Euskadi Ta Askatasuna, and the Irish Re-
publican Army. 
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