The Prevent All Cigarette Trafficking (“PACT”) Act, 15 U.S.C. §§ 375, et seq., requires all persons who sell, transfer or ship (or advertise or offer to sell, transfer or ship) cigarettes (including roll-your-own tobacco) or smokeless tobacco in interstate commerce for profit to:
- Register with the United States’ Attorney General and the tobacco tax administrator of the state into which the shipment, advertisement or offer is made (for Arizona, the administrator is ADOR); and
- File monthly reports with the tobacco tax administrator, no later than the 10th of each month, identifying the brands, quantities and recipients of cigarette and smokeless tobacco shipments into the state during the previous month.
These provisions apply to any individuals meeting the above criteria, including manufacturers, distributors and delivery sellers. The registration statement must include:
- the registrant's name and trade name, if any;
- the address of the registrant's principal place of business and of any other place of business;
- the telephone number for each place of business;
- a principal electronic mailing address;
- any website addresses; and
- the name, address, and telephone number of an agent in Arizona authorized to accept service on behalf of the person.
The report is due on the 10th day of each month and must include a memorandum or copies of invoices covering each and every shipment made into Arizona during the previous calendar month. The report must provide at least the following information, organized by city or town and by zip code:
- the name and address of the person to whom the shipment was made;
- the invoice or memoranda information relating to the specific customer including brand and quantity of cigarettes and smokeless tobacco shipped; and
- the name, address and phone number of the person delivering the shipment to the recipient on behalf of the delivery seller.
In addition to the registration and reporting requirements, the PACT Act requires that each delivery seller comply with “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” (15 U.S.C. § 376a(a)(3)).
Violators of the PACT Act may be subject to criminal and civil penalties.