2023 Rhode Island General Laws › Title 44 - Taxation › Chapter 44-20 - Cigarette and Other Tobacco Products Tax › Section 44-20-12.2. - Prohibited acts — Penalty.

§ 44-20-12.2. Prohibited acts — Penalty.
(a)
No person or other legal entity shall sell or distribute in the state; acquire, hold, own, possess, or transport for sale or distribution in this state; or import, or cause to be imported, into the state for sale or distribution in this state; nor shall tax stamps be affixed to any cigarette package:
(1)
That bears any label or notice prescribed by the United States Department of Treasury to identify cigarettes exempt from tax by the United States pursuant to section 5704 of title 26 of the United States Code, 26 U.S.C. § 5704(b) (concerning cigarettes intended for shipment to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States), or for consumption beyond the jurisdiction of the internal revenue laws of the United States, including any notice or label described in section 44.185 of title 27 of the Code of Federal Regulations, 27 C.F.R. § 44.185;
(2)
That is not labeled in conformity with the provisions of the Federal Cigarette Labeling and Advertising Act, 15 U.S.C. § 1331 et seq., or any other federal requirement for the placement of labels, warnings, and other information applicable to cigarette packages intended for domestic consumption;
(3)
The packaging of which has been modified or altered by a person other than the original manufacturer of the cigarettes, including by the placement of a sticker to cover information on the package. For purposes of this subsection, a cigarette package shall not be construed to have been modified or altered by a person other than the manufacturer if the most recent modification to, or alteration of, the package was by the manufacturer or by a person authorized by the manufacturer;
(4)
Imported into the United States in violation of 26 U.S.C. § 5754 or any other federal law, or implementing federal regulations;
(5)
That the person otherwise knows, or has reason to know, the manufacturer did not intend to be sold, distributed, or used in the United States; or
(6)
That has not been submitted to the secretary of the U.S. Department of Health and Human Services the list or lists of the ingredients added to tobacco in the manufacture of those cigarettes required by the Federal Cigarette Labeling and Advertising Act, 15 U.S.C. § 1335a.
(b)
The tax administrator is authorized to obtain and exchange information with the United States Customs Service for the purpose of enforcing this section.
(c)
Any person who or that affixes or distributes a tax stamp in violation of this section shall be fined not more than ten thousand dollars ($10,000) for the first offense, and for each subsequent offense shall be fined not more than twenty thousand dollars ($20,000), or be imprisoned not more than five (5) years, or be both fined and imprisoned.
(d)
Any cigarettes found in violation of this section shall be declared to be contraband goods and may be seized by the tax administrator, or his or her agents, or by any sheriff, or his or her deputy, or any police officer, without a warrant. The tax administrator may promulgate rules and regulations for the destruction of contraband goods pursuant to this section, including the administrator’s right to allow the true holder of the trademark rights in a cigarette brand to inspect contraband cigarettes prior to their destruction.
(e)
The prohibitions of this section do not apply to:
(1)
Tobacco products that are allowed to be imported or brought into the United States free of tax and duty under subsection IV of chapter 98 of the harmonized tariff schedule of the United States (see 19 U.S.C. § 1202); or
(2)
Tobacco products in excess of the amounts described in subdivision (1) of this subsection if the excess amounts are voluntarily abandoned to the tax administrator at the time of entry, but only if the tobacco products were imported or brought into the United States for personal use and not with intent to defraud the United States or any state.
(f)
If any part or provision of this section, or the application of any part to any person or circumstance is held invalid, the remainder of the section, including the application of that part or provision to other persons or circumstances, shall not be affected by that invalidity and shall continue in full force and effect. To this end, the provisions of this section are severable.
History of Section.
P.L. 2000, ch. 160, § 1; P.L. 2000, ch. 377, § 1; P.L. 2005, ch. 410, § 32; P.L. 2007, ch. 246, § 3; P.L. 2007, ch. 250, § 3; P.L. 2014, ch. 151, § 1; P.L. 2014, ch. 168, § 1; P.L. 2016, ch. 512, art. 1, § 32.