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U.S Code last checked for updates: Nov 22, 2024
All Titles
Title 15
Chapter 10A
§ 376. Reports to State tobacco ...
§ 377. Penalties...
§ 376. Reports to State tobacco ...
§ 377. Penalties...
U.S. Code
Notes
§ 376a.
Delivery sales
(a)
In general
With respect to delivery sales into a specific State and place, each delivery seller shall comply with—
(1)
the shipping requirements set forth in subsection (b);
(2)
the recordkeeping requirements set forth in subsection (c);
(3)
all State, local, tribal, and other laws generally applicable to sales of cigarettes or smokeless tobacco as if the delivery sales occurred entirely within the specific State and place, including laws imposing—
(A)
excise taxes;
(B)
licensing and tax-stamping requirements;
(C)
restrictions on sales to minors; and
(D)
other payment obligations or legal requirements relating to the sale, distribution, or delivery of cigarettes or smokeless tobacco; and
(4)
the tax collection requirements set forth in subsection (d).
(b)
Shipping and packaging
(1)
Required statement
(2)
Failure to label
(3)
Weight restriction
(4)
Age verification
(A)
In general
A delivery seller who mails or ships tobacco products—
(i)
shall not sell, deliver, or cause to be delivered any tobacco products to a person under the minimum age required for the legal sale or purchase of tobacco products, as determined by the applicable law at the place of delivery;
(ii)
shall use a method of mailing or shipping that requires—
(I)
the purchaser placing the delivery sale order, or an adult who is at least the minimum age required for the legal sale or purchase of tobacco products, as determined by the applicable law at the place of delivery, to sign to accept delivery of the shipping container at the delivery address; and
(II)
the person who signs to accept delivery of the shipping container to provide proof, in the form of a valid, government-issued identification bearing a photograph of the individual, that the person is at least the minimum age required for the legal sale or purchase of tobacco products, as determined by the applicable law at the place of delivery; and
(iii)
shall not accept a delivery sale order from a person without—
(I)
obtaining the full name, birth date, and residential address of that person; and
(II)
verifying the information provided in subclause (I), through the use of a commercially available database or aggregate of databases, consisting primarily of data from government sources, that are regularly used by government and businesses for the purpose of age and identity verification and authentication, to ensure that the purchaser is at least the minimum age required for the legal sale or purchase of tobacco products, as determined by the applicable law at the place of delivery.
(B)
Limitation
(c)
Records
(1)
In general
(2)
Record retention
(3)
Access for officials
(d)
Delivery
(1)
In general
Except as provided in paragraph (2), no delivery seller may sell or deliver to any consumer, or tender to any common carrier or other delivery service, any cigarettes or smokeless tobacco pursuant to a delivery sale unless, in advance of the sale, delivery, or tender—
(A)
any cigarette or smokeless tobacco excise tax that is imposed by the State in which the cigarettes or smokeless tobacco are to be delivered has been paid to the State;
(B)
any cigarette or smokeless tobacco excise tax that is imposed by the local government of the place in which the cigarettes or smokeless tobacco are to be delivered has been paid to the local government; and
(C)
any required stamps or other indicia that the excise tax has been paid are properly affixed or applied to the cigarettes or smokeless tobacco.
(2)
Exception
(e)
List of unregistered or noncompliant delivery sellers
(1)
In general
(A)
Initial list
Not later than 90 days after this subsection goes into effect under the Prevent All Cigarette Trafficking Act of 2009, the Attorney General of the United States shall compile a list of delivery sellers of cigarettes or smokeless tobacco that have not registered with the Attorney General of the United States pursuant to
section 376(a) of this title
, or that are otherwise not in compliance with this chapter, and—
(i)
distribute the list to—
(I)
the attorney general and tax administrator of every State;
(II)
common carriers and other persons that deliver small packages to consumers in interstate commerce, including the United States Postal Service; and
(III)
any other person that the Attorney General of the United States determines can promote the effective enforcement of this chapter; and
(ii)
publicize and make the list available to any other person engaged in the business of interstate deliveries or who delivers cigarettes or smokeless tobacco in or into any State.
(B)
List contents
To the extent known, the Attorney General of the United States shall include, for each delivery seller on the list described in subparagraph (A)—
(i)
all names the delivery seller uses or has used in the transaction of its business or on packages delivered to customers;
(ii)
all addresses from which the delivery seller does or has done business, or ships or has shipped cigarettes or smokeless tobacco;
(iii)
the website addresses, primary e-mail address, and phone number of the delivery seller; and
(iv)
any other information that the Attorney General of the United States determines would facilitate compliance with this subsection by recipients of the list.
(C)
Updating
(D)
State, local, or tribal additions
(E)
Accuracy and completeness of list of noncomplying delivery sellers
In preparing and revising the list described in subparagraph (A), the Attorney General of the United States shall—
(i)
use reasonable procedures to ensure maximum possible accuracy and completeness of the records and information relied on for the purpose of determining that a delivery seller is not in compliance with this chapter;
(ii)
not later than 14 days before including a delivery seller on the list, make a reasonable attempt to send notice to the delivery seller by letter, electronic mail, or other means that the delivery seller is being placed on the list, which shall cite the relevant provisions of this chapter and the specific reasons for which the delivery seller is being placed on the list;
(iii)
provide an opportunity to the delivery seller to challenge placement on the list;
(iv)
investigate each challenge described in clause (iii) by contacting the relevant Federal, State, tribal, and local law enforcement officials, and provide the specific findings and results of the investigation to the delivery seller not later than 30 days after the date on which the challenge is made; and
(v)
if the Attorney General of the United States determines that the basis for including a delivery seller on the list is inaccurate, based on incomplete information, or cannot be verified, promptly remove the delivery seller from the list as appropriate and notify each appropriate Federal, State, tribal, and local authority of the determination.
(F)
Confidentiality
(2)
Prohibition on delivery
(A)
In general
Commencing on the date that is 60 days after the date of the initial distribution or availability of the list described in paragraph (1)(A), no person who receives the list under paragraph (1), and no person who delivers cigarettes or smokeless tobacco to consumers, shall knowingly complete, cause to be completed, or complete its portion of a delivery of any package for any person whose name and address are on the list, unless—
(i)
the person making the delivery knows or believes in good faith that the item does not include cigarettes or smokeless tobacco;
(ii)
the delivery is made to a person lawfully engaged in the business of manufacturing, distributing, or selling cigarettes or smokeless tobacco; or
(iii)
the package being delivered weighs more than 100 pounds and the person making the delivery does not know or have reasonable cause to believe that the package contains cigarettes or smokeless tobacco.
(B)
Implementation of updates
(3)
Exemptions
(A)
In general
Subsection (b)(2) and any requirements or restrictions placed directly on common carriers under this subsection, including subparagraphs (A) and (B) of paragraph (2), shall not apply to a common carrier that—
(i)
is subject to a settlement agreement described in subparagraph (B); or
(ii)
if a settlement agreement described in subparagraph (B) to which the common carrier is a party is terminated or otherwise becomes inactive, is administering and enforcing policies and practices throughout the United States that are at least as stringent as the agreement.
(B)
Settlement agreement
A settlement agreement described in this subparagraph—
(i)
is a settlement agreement relating to tobacco product deliveries to consumers; and
(ii)
includes—
(I)
the Assurance of Discontinuance entered into by the Attorney General of New York and DHL Holdings USA, Inc. and DHL Express (USA), Inc. on or about
July 1, 2005
, the Assurance of Discontinuance entered into by the Attorney General of New York and United Parcel Service, Inc. on or about
October 21, 2005
, and the Assurance of Compliance entered into by the Attorney General of New York and Federal Express Corporation and FedEx Ground Package Systems, Inc. on or about
February 3, 2006
, if each of those agreements is honored throughout the United States to block illegal deliveries of cigarettes or smokeless tobacco to consumers; and
(II)
any other active agreement between a common carrier and a State that operates throughout the United States to ensure that no deliveries of cigarettes or smokeless tobacco shall be made to consumers or illegally operating Internet or mail-order sellers and that any such deliveries to consumers shall not be made to minors or without payment to the States and localities where the consumers are located of all taxes on the tobacco products.
(4)
Shipments from persons on list
(A)
In general
If a common carrier or other delivery service delays or interrupts the delivery of a package in the possession of the common carrier or delivery service because the common carrier or delivery service determines or has reason to believe that the person ordering the delivery is on a list described in paragraph (1)(A) and that clauses (i), (ii), and (iii) of paragraph (2)(A) do not apply—
(i)
the person ordering the delivery shall be obligated to pay—
(I)
the common carrier or other delivery service as if the delivery of the package had been timely completed; and
(II)
if the package is not deliverable, any reasonable additional fee or charge levied by the common carrier or other delivery service to cover any extra costs and inconvenience and to serve as a disincentive against such noncomplying delivery orders; and
(ii)
if the package is determined not to be deliverable, the common carrier or other delivery service shall offer to provide the package and its contents to a Federal, State, or local law enforcement agency.
(B)
Records
(C)
Confidentiality
Any person receiving records under subparagraph (B) shall—
(i)
use the records solely for the purposes of the enforcement of this chapter and the collection of any taxes owed on related sales of cigarettes and smokeless tobacco; and
(ii)
keep confidential any personal information in the records not otherwise required for such purposes.
(5)
Preemption
(A)
In general
No State, local, or tribal government, nor any political authority of 2 or more State, local, or tribal governments, may enact or enforce any law or regulation relating to delivery sales that restricts deliveries of cigarettes or smokeless tobacco to consumers by common carriers or other delivery services on behalf of delivery sellers by—
(i)
requiring that the common carrier or other delivery service verify the age or identity of the consumer accepting the delivery by requiring the person who signs to accept delivery of the shipping container to provide proof, in the form of a valid, government-issued identification bearing a photograph of the individual, that the person is at least the minimum age required for the legal sale or purchase of tobacco products, as determined by either State or local law at the place of delivery;
(ii)
requiring that the common carrier or other delivery service obtain a signature from the consumer accepting the delivery;
(iii)
requiring that the common carrier or other delivery service verify that all applicable taxes have been paid;
(iv)
requiring that packages delivered by the common carrier or other delivery service contain any particular labels, notice, or markings; or
(v)
prohibiting common carriers or other delivery services from making deliveries on the basis of whether the delivery seller is or is not identified on any list of delivery sellers maintained and distributed by any entity other than the Federal Government.
(B)
Relationship to other laws
Except as provided in subparagraph (C), nothing in this paragraph shall be construed to nullify, expand, restrict, or otherwise amend or modify—
(i)
section 14501(c)(1) or 41713(b)(4) of title 49;
(ii)
any other restrictions in Federal law on the ability of State, local, or tribal governments to regulate common carriers; or
(iii)
any provision of State, local, or tribal law regulating common carriers that is described in section 14501(c)(2) or 41713(b)(4)(B) of title 49.
(C)
State laws prohibiting delivery sales
(i)
In general
(ii)
Exemptions
(6)
State, local, and tribal additions
(A)
In general
Any State, local, or tribal government shall provide the Attorney General of the United States with—
(i)
all known names, addresses, website addresses, and other primary contact information of any delivery seller that—
(I)
offers for sale or makes sales of cigarettes or smokeless tobacco in or into the State, locality, or tribal land; and
(II)
has failed to register with or make reports to the respective tax administrator as required by this chapter, or that has been found in a legal proceeding to have otherwise failed to comply with this chapter; and
(ii)
a list of common carriers and other persons who make deliveries of cigarettes or smokeless tobacco in or into the State, locality, or tribal land.
(B)
Updates
(C)
Removal after withdrawal
(7)
Deadline to incorporate additions
The Attorney General of the United States shall—
(A)
include any delivery seller identified and submitted by a State, local, or tribal government under paragraph (6) in any list or update that is distributed or made available under paragraph (1) on or after the date that is 30 days after the date on which the information is received by the Attorney General of the United States; and
(B)
distribute any list or update described in subparagraph (A) to any common carrier or other person who makes deliveries of cigarettes or smokeless tobacco that has been identified and submitted by a government pursuant to paragraph (6).
(8)
Notice to delivery sellers
(9)
Limitations
(A)
In general
Any common carrier or other person making a delivery subject to this subsection shall not be required or otherwise obligated to—
(i)
determine whether any list distributed or made available under paragraph (1) is complete, accurate, or up-to-date;
(ii)
determine whether a person ordering a delivery is in compliance with this chapter; or
(iii)
open or inspect, pursuant to this chapter, any package being delivered to determine its contents.
(B)
Alternate names
Any common carrier or other person making a delivery subject to this subsection—
(i)
shall not be required to make any inquiries or otherwise determine whether a person ordering a delivery is a delivery seller on the list described in paragraph (1)(A) who is using a different name or address in order to evade the related delivery restrictions; and
(ii)
shall not knowingly deliver any packages to consumers for any delivery seller on the list described in paragraph (1)(A) who the common carrier or other delivery service knows is a delivery seller who is on the list and is using a different name or address to evade the delivery restrictions of paragraph (2).
(C)
Penalties
Any common carrier or person in the business of delivering packages on behalf of other persons shall not be subject to any penalty under
section 14101(a) of title 49
or any other provision of law for—
(i)
not making any specific delivery, or any deliveries at all, on behalf of any person on the list described in paragraph (1)(A);
(ii)
refusing, as a matter of regular practice and procedure, to make any deliveries, or any deliveries in certain States, of any cigarettes or smokeless tobacco for any person or for any person not in the business of manufacturing, distributing, or selling cigarettes or smokeless tobacco; or
(iii)
delaying or not making a delivery for any person because of reasonable efforts to comply with this chapter.
(D)
Other limits
(f)
Presumption
(
Oct. 19, 1949, ch. 699, § 2A
, as added
Pub. L. 111–154, § 2(c)
,
Mar. 31, 2010
,
124 Stat. 1091
; amended
Pub. L. 116–260, div. FF, title VI, § 602(a)(2)
,
Dec. 27, 2020
,
134 Stat. 3137
.)
cite as:
15 USC 376a
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