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Customs officials are cracking down on a new breed
of website which claims to offer imported cigarettes and tobacco at
cheap prices.
The websites offer consumers the chance to buy the
products at cheaper duty rates than in the UK and the fear is that they
may extend to alcohol and cause problems for the pub trade.
One internet site, Cheap Cigarettes UK, claims: Legally import cigarettes
and tobacco from Spain into the UK all the top brands available.

The sites are cropping up following th Chancellor,s duty rise on beer
and cigarettes last month. But Customs and Excise has warned consumers
that UK duty must be paid on any goods posted from Europe. If there
is any doubt, goods will be seized at postal depots.
However, new proposals being debated by the EU could open the floodgates
for UK consumers to buy alcohol and tobacco over the internet at the
lowest duty rates in Europe.
If new distance selling regulations are approved, it would mean that
duty on goods bought over the internet within the EU would be paid at
the rate in the country where they are sold.
Mark Hastings, spokesperson for the British Beer & Pub Association,
said the rules would allow a UK consumer to order cases of beer from
countries such as Spain, where beer duty is around a tenth that of the
UK.
He said: This undermines the government's entire stance on maintaining
higher duty levels.
UK customs officials have been acting to shut down websites which sell
cheap cigarettes from EU states to British consumers.

A spokesman said: Customs is well aware of these sites and we are vigorously
pursuing action against them. Our officers at postal depots are actively
targeting importations of cigarettes.
Regulations say that duty and VAT must be paid on all items bought over
the internet and imported into the UK. In the mid-1990s the Enlightened
Tobacco Company lost a test case in the European Court after it set
up a mail order business importing cigarettes from Luxembourg.
The long court battle ended with a ruling that consumers can only avoid
paying UK duty if they physically import goods themselves.

WASHINGTON, Feb 19 (Reuters) - U.S. Health and Human
Services Secretary Tommy Thompson said on Wednesday he was considering
the possibility of raising the federal cigarette tax to $2 a pack --
from the current 39 cents -- as recommended by an advisory committee.
Last week, the HHS' Interagency Committee on Smoking and Health approved
a plan for the steep increase in the tax. Half the money raised would
be allocated for initiatives to help people stop smoking.
Anti-tobacco campaigners immediately welcomed the decision and pressured
the government to accept.
"We urge the administration and Congress to act quickly and aggressively
to implement this plan," William Carr, executive vice president
at the Campaign for Tobacco-Free Kids, said in a statement.
"If they do so, it would represent an unprecedented national commitment
to address the leading preventable cause of death and disease in our
country. The committee estimates its plan would prevent three million
premature deaths and help five million smokers to quit."
Health experts say smoking is the biggest single cause of preventable
death, killing 400,000 people every year from heart disease and cancer.
Thompson said Surgeon General Richard Carmona, who chaired the committee,
was coming up with a recommendation for him.
"I haven't made a decision on the tax but I like the concept of
a fund," Thompson told reporters. "I think the general premise
of setting up some sort of fund to give dollars back to people who want
to quit smoking is good."
Thompson said 70 percent of smokers wanted to quit but could not get
the support, including drugs, to do so.
He said he raised cigarette taxes while governor of Wisconsin, but added
the issue of a tax was problematic politically.

Several studies have shown that raising the price of cigarettes can
deter smokers, especially teen-agers.
In 1998, states reached a settlement with tobacco companies in which
they received $246 billion over 25 years to pay for the costs of smoking-related
illnesses.
Anti-smoking campaigners say states have recently been raiding those
and other tobacco-prevention funds to cover budget deficits.
On Tuesday, Minnesota Gov. Tim Pawlenty suggested eliminating the state's
youth tobacco prevention fund, using the cash to cover the state's budget
deficit.