Are You Smoking Illegal Cigarettes? and I Don't Mean the Marijuana Kind

Several states increased taxes on cigarettes during the past year, including Texas, which added a $1 per pack tax onto the already high-priced product. This created an even greater demand for smokers to look for cheaper alternatives to buying their favorite brand of cigarette. Some smokers switched from a premium brand to a discount brand; some smokers quit smoking or cut back on the amount they smoke; some smokers began buying cigarettes online, at discount stores, or smoke shops instead of popping into their neighborhood convenience store on their way to work.

When we owned a convenience store, almost all of our smoking customers questioned why our Marlboro's or Doral's were more expensive than the convenience store one block away. Sometimes, certain of our brands were cheaper than our competitor. Most smokers are not aware of the reasons behind different prices of cigarettes in different stores. It may alarm you to find out that you are smoking illegal cigarettes and could be fined and/or go to jail if you are caught. There are various forms of illegal trade in the tobacco business, but the most detrimental is the illegal possession and distribution of "gray market" cigarettes.

Gray market cigarettes are those that are manufactured for sale outside the U.S., are exported, and then re-imported illegally back into the U.S. by third parties for domestic sale without the permission of the trademark owner. Currently, the federal government, Washington D.C. and 49 states have passes laws that consider gray market cigarettes contraband and illegal. In most states, if you are found in possession of gray market cigarettes, you can be fined $1,000 and/or serve one year in jail. In most states, those who get caught with or distribute 20,000 or more gray market cigarettes can get fined $5,000 and/or serve 1-5 years in jail.