An Act to amend title 18 of the United States Code to eliminate racketeering in the sale and distribution of cigarettes, and for other purposes.
PL 95-575 (S.1487), enacted 11/02/1978

PUBLIC LAW 95-575—NOV. 2, 1978 
92 STAT. 2463 
Public Law 95-575 
95th Congress 
An Act 
To amend title 18 of the United States Code to eliminate racketeering in the 
sale and distribution of cigarettes, and for other purposes. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress a^semhled, That title 18, United 
States Code, is amended by inserting after chapter 113 the following 
new chapter: 
"CHAPTER 114- -TRAFFICKING IN CONTRABAND 
CIGARETTES 
"Sec. 
: • 
"2341. Definitions. 
, 
"2342. Unlawful acts. 
"2343. Recordkeeping and inspection. 
"2344. Penalties. 
"2345. Effect on State law. 
"2346. Enforcement and regulations. 
"§2341. DeJSnitions 
"As used in this chapter— 
" (1) the term 'cigarette' means— 
" (A) any roll of tobacco wrapped in paper or in any sub-
stance not containing tobacco; and 
» 
"(B) any roll of tobacco wrapped in any substance con-
taining tobacco which, because of its appearance, the type of 
tobacco used in the filler, or its packaging and labeling, is 
likely to be offered to, or purchased by, consumers as a ciga-
rette described in subparagraph (A); 
" (2) the term 'contraband cigarettes' means a quantity in excess 
of 60,000 cigarettes, which bear no evidence of the payment of 
applicable State cigarette taxes in the State where such cigarettes 
are found, if such State requires a stamp, impression, or other 
E 
indication to be placed on packages or other containers of ciga-
rettes to evidence payment of cigarette taxes, and which are in 
the possession of any person other than— 
"(A) a person holding a permit issued pursuant to chapter 
52 of the Internal Revenue Code of 1954 as a manufacturer of 
tobacco products or as an export warehouse proprietor, or a 
person operating a customs bonded warehouse pursuant to 
; • 
section 311 or 555 of the Tariff Act of 1930 (19 U.S.C. 1311 
or 1555) or an agent of such person; 
"(B) a common or contract carrier transporting the ciga-
rettes involved under a proper bill of lading or freight bill 
which states the quantity, source, and destination of such 
cigarettes; 
"(C) a person— 
"(i) who is licensed or otherwise authorized by the 
State where the cigarettes are found to account for and 
pay cigarette taxes imposed by such State; and 
"(ii) who has complied with the accounting and pay-
ment requirements relating to such license or authoriza-
tion with respect to the cigarettes involved; or 
Nov. 2, 1978 
[S. 14871 
Cigarettes. 
Sale and 
distribution 
racketeering, 
elimination. 
18 
use 
2341. 
26 
use 
5701 et 
seq. 
92 STAT. 2464 
PUBLIC LAW 95-575—NOV. 2, 1978 
"(D) an officer, employee, or other agent of the United 
States or a State, or any department, agency, or instrumental-
ity of the United States or a State (including any political 
subdivision of a State) having possession of such cigarettes in 
, 
connection with the performance of official duties; 
"(3) the term 'common or contract carrier' means a carrier 
holding a certificate of convenience and necessity, a permit for 
contract carrier by motor vehicle, or other valid operating author-
49 use prec. 1 
ity under the Interstate Commerce Act, or under equivalent 
note. 
operating authority from a regulatory agency of the United States 
: 
or of any State; 
"(4) the term 'State' means a State of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, or the 
Virgin Islands; and 
"(5) the term 'Secretary' means the Secretary of the Treasury. 
18 use 2342. 
"§ 2342. Unlawful acts 
"(a) It shall be unlawful for any person knowingly to ship, trans-
port, receive, possess, sell, distribute, or purchase contraband cigarettes. 
"(b) It shall be unlawful for any person knowingly to make any 
false statement or representation with respect to the information 
required by this chapter to be kept in the records of any person who 
'• ^ • ships, sells, or distributes any quantity of cigarettes in excess of 60,000 
in a single transaction. 
18 use 2343. 
*
*
§ 2343. Recordkeeping and inspection 
"(a) Any person who ships, sells, or distributes any quantity of 
cigarettes in excess of 60,000 in a single transaction shall maintain such 
information about the shipment, receipt, sale, and distribution of 
cigarettes as the Secretary may prescribe by rule or regulation. The 
Secretary may require such person to keep only— 
"(1) the name, address, destination (including street address), 
vehicle license number, driver's license number, signature of the 
person receiving such cigarettes, and the name of the purchaser; 
"(2) a declaration of the specific purpose of the receipt (per-
sonal use, resale, or delivery to another); and 
"(3) a declaration of the name and address of the recipient's 
principal in all cases when the recipient is acting as an agent. 
Such information shall be contained on business records kept in the 
normal course of business. Nothing contained herein shall authorize 
^
% iivic'jrii] 
the Secretary to require reporting under this section. 
"(b) Upon the consent of any person who ships, sells, or distributes 
any quantity of cigarettes in excess of 60,000 in a single transaction, 
or pursuant to a duly issued search warrant, the Secretary may enter 
the premises (including places of storage) of such person for the 
purpose of inspecting any records or information required to be 
maintained by such person under this chapter, and any cigarettes 
kept or stored by such person at such premises. 
18 use 2344. 
"§2344. Penalties 
"(a) Whoever knowingly violates section 2342(a) of this title 
shall be fined not more than $100,000 or imprisoned not more than 
five years, or both. 
"(b) Whoever knowingly violates any rule or regulation promul-
gated under section 2343(a) or 2346 of this title or violates section 
PUBLIC LAW 95-575—NOV. 2, 1978 
92 STAT. 2465 
2342(b) of this title shall be fined not more than $5,000 or imprisoned 
not more than three years, or both. 
"(c) Any contraband cigarettes involved in any violation of the 
provisions of this chapter shall be subject to seizure and forfeiture, 
and all provisions of the Internal Kevenue Code of 1954 relating to 26 USC 1 et seq. 
the seizure, forfeiture, and disposition of firearms, as defined in sec-
tion 5845(a) of such Code, shall, so far as applicable, extend to 26 USC 5845. 
seizures and forfeitures under the provisions of this chapter. 
"§ 2345. Effect on State law 
18 USC 2345. 
" (a) Nothing in this chapter shall be construed to affect the concur-
rent jurisdiction of a State to enact and enforce cigarette tax laws, 
to provide for the confiscation of cigarettes and other property seized 
for violation of such laws, and to provide for penalties for the viola-
tion of such laws. 
"(b) Nothing* in this chapter shall be construed to inhibit or other-
wise affect any coordinated law enforcement effort by a number of 
States, through interstate compact or otherwise, to provide for the 
administration of State cigarette tax laws, to provide for the con-
fiscation of cigarettes and other property seized in violation of such 
laws, and to establish cooperative programs for the administration of 
such laws. 
"§ 2346. Enforcement and regulations 
18 USC 2346. 
"The Secretary, subject to the provisions of section 2343(a) of this 
title, shall enforce the provisions of this chapter and may prescribe 
such rules and regulations as he deems reasonably necessary to carry 
out the provisions of this chapter.". 
SEC. 2. The table of chapters of part I of title 18, United States 
Code, is amended by inserting immediately below the item relating to 
chapter 113 the following: 
"114. Trafficking in Contraband Cigarettes 
2341." 
SEC. 3. (a) Section 1(b) of the Act of August 9, 1939 (ch. 618, 53 
Stat. 1291 (49 U.S.C. 781 (b))), is amended— 
(1) by striking out "or" at the end of paragraph (2) ; 
(2) by striking out the period at the end of paragraph (3) and 
inserting in lieu thereof "; or"; and 
(3) by inserting after paragraph (3) the following new para-
graph : 
"(4) Any cigarette, vdth respect to which there has been com-
mitted any violation of chapter 114 of title 18, United States Code, Ante, p. 2463. 
or any regulation issued pursuant thereto.". 
(b) Section 7 of the Act of August 9, 1939 (ch. 618, 53 Stat. 1291 Definitions. 
(49 U.S.C. 787)), is amended— 
(1) by striking out "and" at the end of subsection (e); 
(2) by striking out the period at the end of subsection (f) and 
inserting in lieu thereof "; and"; and 
(3) by inserting after subsection (f) the following new sub-
section : 
• " (g) The term 'cigarettes' means 'contraband cigarettes' as now or "Cigarettes." 
hereafter defined in section 2341 of title 18, United States Code.". 
(c) Section 1961(1) (B) of title 18, United States Code, is amended 
by msertmg after "sections 2314 and 2315 (relating to interstate trans-
92 STAT. 2466 
PUBLIC LAW 95-575—NOV. 2, 1978 
portation of stolen property)," the following: "sections 2341-2346 
(relating to trafficking in contraband cigarettes),". 
18 use 2341 
SEC. 4. (a) Except as provided in subsection (b), this Act shall take 
note. 
effect on the date of its enactment. 
(b) Sections 2342(b) and 2343 of title 18, United States Code, as 
enacted by the first section of this Act, shall take effect on the first day 
i>. ?
( - f ,.f 
of the first month beginning more than 120 days after the date of the 
enactment of this Act. 
Appropriation 
SEC. 5. There are hereby authorized to be appropriated such sums as 
io*T?<r^*^o°]*; 
"i*y ^^ necessary to carry out the provisions of chapter 114 of title 18, 
18 UbC 2341 
United States Code, added by the first section of this Act. 
note 
Approved November 2, 1978. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 95-1629, accompanying H.R. 8853 (Coram, on the Judiciary) 
and No. 95-1778 (Coram, of Conference). 
. . - . s-^i-. 
SENATE REPORT No. 95-962 (Coram, on the Judiciary). 
- -•'• 
CONGRESSIONAL RECORD, Vol. 128 (1978): 
Sept. 29, considered and passed Senate. 
Oct. 3, H.R. 8853 considered and passed House; passage vacated, and S. 1487, 
amended, passed in lieu. 
Oct. 15, House and Senate agreed to conference report.