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The legality of this business proposal falls under several different categories:

Federal "Contraband Cigarette Trafficking Act - USCode : Title 18, sec. 2341-2342

To see the specific federal law, see:

US Code : Title 18, Section 2341

US Code : Title 18, Section 2342

Various State Taxation Laws
Cigarette tax laws vary from state to state. This is a significant fact with our business. This fact allows us to operate in North Carolina, paying the relatively small North Carolina taxes, and ship them to other states.

States also allow different amounts of untaxed cigarettes to be possessed by individuals without being in violation of that state's laws. These laws put the responsibility of paying these taxes on the consumer. However, it is the responsible thing to limit the number of cigarette cartons to a reasonable level.

In Connecticut, for example, the state limits an individual to possess no more than 20,000 (100 cartons) untaxed cigarettes.

To see specific state laws, go to .

In order to keep JBC Smoke Shop from violating federal and state laws, we will be implementing the following procedures:

  1. We will limit the sale of cigarettes to 50 cartons to any individual, unless they are being sold to residents of North Carolina where we will put no limit on the number sold.
  2. We will put into place at least two "internet acceptable" procedures and protocols to prevent the sale of cigarettes and other tobacco products to those under the age of 18 years of age.
  3. We will advise our customers, with a flyer inside the package as well as a bulletin posted on the web site prior to closing the sale, of the legal requirements and issues pertaining to purchasing cigarettes from outside North Carolina. This flyer and bulletin will look much like the found on the page that this link leads to: Legal Notice

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Prepared By: Matt Scofield
September 2000