Appeals court upheld cigarette mailings ban

By Mark Wozniak

Buffalo, NY – A federal appeals court Tuesday upheld the new federal law that prohibits the U-S Postal Service from delivering commercial cigarette shipments.

The so-called PACT law, or Prevent All Cigarette Trafficking Act, is designed to prevent the Seneca Nation of Indians and other Native American retailers from selling tobacco products through the mail to minors.

However, the appeals court did overturn a segment of the law that would have required companies purchasing out of state tobacco products to pay sales taxes. Further appeals must be filed with the U.S. Supreme Court within 90 days.

The following is a statement from Seneca Nation of Indians President Robert Odawi Porter about a decision from Second Circuit U.S. Court of Appeals in Manhattan regarding the Prevent All Cigarettes Trafficking Act:

"This is a positive decision from the appellate court panel on the substance of the PACT Act and how it affects Seneca Nation trade. While restrictions on mailing remain in place, the method currently used by Seneca Nation merchants to send product - private shippers other than the major delivery companies - is back open. And, no out-of-state tax collection is required on remote sales."

"The Second Circuit panel declined to modify the injunction, affirming Judge Arcara's order. This means that provisions of the PACT Act requiring Seneca retailers to comply with the tax, licensing, and other laws of the states they deliver cigarettes to are precluded."

"As always, Seneca retailers must show Nation duty stamps on exported tobacco products and are forbidden to sell to minors."