Smoke ‘em if you got ‘em from somewhere other than the internets

HONOLULU—To comply with legislation passed by Congress and signed into law by President Barack Obama, cigarettes and smokeless tobacco products will be subject to new mailing regulations effective June 29. The law, Prevent All Cigarette Trafficking Act (PACT), Public Law No. 111-154, prevents the United States Postal Service from delivering tobacco products, except under certain circumstances.

Shipments entirely within Hawaii and Alaska will continue, subject to certain labeling and acceptance requirements.

The USPS restriction comes nearly a decade after the online tobacco industry had grown substantially, particularly in response to increases in state and federal taxes.

Hawaii’s cigarette taxes have increased $1.60 per pack since 2002, and will increase 20 cents more on July 1 and again in 2011.

Last year, Obama signed into law the largest tobacco tax increase in history. The Children’s Health Insurance Program Reauthorization Act of 2009 raised the federal tax rate for cigarettes from $0.39 per pack to $1.01 per pack. Taxes collected through the act fund the State Children’s Health Insurance Program, which provides aid for impoverished children.

PACT was the federal response to businesses selling tobacco products online in order to avoid paying taxes. The new law addresses several loopholes that allowed organizations to continue selling tobacco products online without observing regulations set up by the Jenkins Act.

PACT amends the Jenkins Act by:

* Including roll-your-own tobacco and excluding cigars.
* Targeting Indian tribal governments who have been sending tobacco products through the mail.
* Strengthening the reporting requirements for interstate cigarette sellers.
* Increasing the criminal penalty from a misdemeanor to a felony
* Creating substantial civil penalties for violations, including violations of the reporting requirements and state tobacco tax laws.
* Granting federal and state law enforcement officials more powers to investigate and prosecute violators.
* Prohibiting the USPS from delivering tobacco products except under certain circumstances.

With only a few limited exceptions, the Postal Service will no longer be allowed to accept or transport packages containing cigarettes or smokeless tobacco products. The general mailability ban will extend to cigarettes, roll-your-own tobacco, and smokeless tobacco. The prohibition does not include cigars.

Exempt from the USPS prohibition are mailings within Alaska or Hawaii; mailings for business purposes between legally operating tobacco businesses, and by individuals for noncommercial purposes; and mailings for consumer testing by manufacturers or the federal government.

The law does permit infrequent lightweight shipments by age-verified adults to recipients who are at least the age of majority for purchase of tobacco. Shipments between businesses in the tobacco industry will also be permitted, as well as cigarettes sent to consumers age 21 and above for testing or public health purposes.

Most shipments will require photo identification and age verification consistent with the minimum age requirements in the locality of destination. With the exception of shipments entirely within Alaska and Hawaii, shipments are permitted only via Express Mail and, with the exception of shipments from the United States to APO/FPO/DPO destinations, will be delivered using “hold for pickup” service at the destination Post Office.