Thursday, August 16, 2007

Grocery Store Distribution, Knock-off Sales, Taxation, Health and Hazzard

BUTT IN – BUTT OUT

COUNTERFEIT CIGARETTES

FLOODING THE MARKETPLACE



In a raid conducted by U.S. Alcohol Tobacco and Firearms agents, they seized more than 57,000 cartons of illegal smokes in unmarked cartons from a Queens New York warehouse. The estimated street value tops more than $3.4 million. In addition they seized more than $350,000 cash during the raid.

ATF agents estimate that between 35 to 50 percent s of the cigarettes that New Yorkers smoke are counterfeit. According to Assistant District Attorney Kathleen Rice, Nassau County New York, who headed the investigation, alleges that the counterfeit smokes contained higher than legal level of tar and nicotine. This suggests that thousands of New Yorkers are smoking hazardous and harmful cigarettes.
This is not just a New York problem, but rather is national in scope.

Is the high tax rate for cigarettes driving smokers to the counterfeit products? It obvious how entrenched the counterfeit butts are in the grocery marketplace. They look like the original smokes, yet contain harmful, non-regulated contraband, that is not inspected and approved by the USDA.

This is more than a counterfeit problem; it’s a health hazard, a tax problem and a willingness by thousands of smoker to by-pass the taxation and increased taxes imposed by local government. A cigarette smoker will smoke any cigarette available if it looks like, feels like and tastes like the original. This also impacts the companies that produce, distribute and employee thousands of Americans. The reduction of cigarette sales from the distribution network is easily identifiable. Distribution operators notice that the reduction in purchases, yet the mom & pop grocery store fronts have available cartons and packs for sale to the public.

Is the public smoker aware of the difference? Of courses they immediately know that they are paying less for the carton or individual pack. Therefore, smoker markets are contributing to the counterfeit explosion.

This points to a pricing issue; not health, not loyalty to American business manufacturers and not contributing to increased taxation. It’s more than a cigarette issue but rather a consumer issue. Protecting the consumer, whether its cigarettes, toys, or even children’s bibs finds that the production of counterfeit goods, products that have not been inspected or qualified for distribution within the United States has a tremendous impact on the American family and American business..

When is the American manufacturing community going to recognize that along with war on terror, comes a war against the American economy? Flooding the marketplace by non-traditional distributors avoiding taxes and failing to conform with inspections that protect the American population may in fact be a well planned effort to harm our economy and our American children.

WHAT DO YOU THINK!!!

LET US KNOW! WE’LL REPORT

Labels: , , ,