[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3738 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3738

To establish a responsible United States international tobacco policy, 
    to prevent tobacco companies from targeting tobacco products to 
  children, to ensure no government promotion of tobacco overseas, to 
curb smuggling of tobacco products, to establish the American Center on 
           Global Health and Tobacco, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 28, 1998

Mr. Doggett (for himself, Mr. Kennedy of Massachusetts, Mrs. Lowey, Ms. 
 Pelosi, Mr. Hansen, Mr. McDermott, Mr. Olver, Ms. DeGette, Ms. Roybal-
 Allard, Mr. Stark, Ms. Millender-McDonald, Mr. Vento, Mr. Underwood, 
 Mrs. Tauscher, and Mr. Pallone) introduced the following bill; which 
   was referred to the Committee on Commerce, and in addition to the 
    Committees on Ways and Means, International Relations, National 
Security, Resources, and the Judiciary, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To establish a responsible United States international tobacco policy, 
    to prevent tobacco companies from targeting tobacco products to 
  children, to ensure no government promotion of tobacco overseas, to 
curb smuggling of tobacco products, to establish the American Center on 
           Global Health and Tobacco, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

    TITLE I--PROHIBITIONS RELATING TO TOBACCO PRODUCTS AND CHILDREN

SEC. 101. SHORT TITLE.

    This title may be cited as the ``International Tobacco 
Responsibility Act''.

SEC. 102. PROHIBITIONS RELATING TO TOBACCO PRODUCTS AND CHILDREN.

    Chapter VIII of the Federal Food, Drug, and Cosmetic Act is amended 
by adding at the end the following:

``SEC. 804. PROHIBITION ON SALE OR DISTRIBUTION OF TOBACCO PRODUCTS TO 
              CHILDREN.

    ``(a) General Rule.--It shall be unlawful for any domestic concern 
or any officer, director, employee, or agent of such concern to make 
use of the mails or any means or instrumentality of interstate commerce 
to cause or contribute, either directly or through a foreign 
subsidiary, joint venture, affiliate, or licensee, to--
            ``(1) the sale or distribution of tobacco products in a 
        foreign country to children; or
            ``(2) the advertising or promotion of tobacco products in a 
        foreign country in a manner that does not comply with Federal 
        requirements for the advertisement or promotion of tobacco 
        products in the United States.
    ``(b) Defense.--In an action brought to enforce subsection (a), it 
shall be an affirmative defense that the tobacco products involved were 
sold, distributed, advertised, or promoted in the foreign country 
involved in a manner that would be lawful if such conduct occurred in 
the United States.

``SEC. 805. LABELING.

    ``It shall be unlawful for any domestic concern or any officer, 
director, employee, or agent of such concern, either directly or 
through a foreign subsidiary, joint venture, affiliate, or licensee, to 
make use of the mails or any means or instrumentality of interstate 
commerce to cause or contribute to the export from the United States or 
the sale or distribution in, or export from, any other country any 
tobacco product the package of which does not contain a warning label 
that--
            ``(1) is in the primary language or languages of the 
        country in which the tobacco product is sold or distributed to 
        consumers; and
            ``(2) except for the requirement of paragraph (1)--
                    ``(A) complies with Federal requirements for 
                labeling of similar tobacco products manufactured, 
                imported, or packaged for sale or distribution in the 
                United States; or
                    ``(B) complies with the labeling requirements of 
                the foreign country in which the product is sold or 
                distributed to consumers and which labeling 
                requirements the Secretary determines are substantially 
                similar to Federal requirements and are adequately 
                enforced by such country.''.

SEC. 103. ENFORCEMENT.

    Section 301 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
331) is amended by adding at the end the following:
    ``(aa) To carry out an act made unlawful by section 804 or 805.

SEC. 104. REWARD.

    Section 303(b)(5) of the Federal Food, Drug, and Cosmetic Act (21 
U.S.C. 333)(b)(5)) is amended by adding at the end the following: ``If 
a person provides information leading to the institution of a criminal 
proceeding against, and conviction of, a person for a violation of 
section 301(aa), such person shall be entitled to one-half of the 
criminal fine imposed and collected for such violation but not more 
than $125,000.''.

SEC. 105. DEFINITIONS.

    Section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
321) is amended by adding at the end the following:
    ``(kk) The term `domestic concern' means--
            ``(1) any individual who is a citizen, national, or 
        resident of the United States; and
            ``(2) any corporation, partnership, association, joint-
        stock company, business trust, unincorporated organization, or 
        sole proprietorship which has its principal place of business 
        in the United States or which is organized under the laws of a 
        State of the United States or a territory, possession, or 
        commonwealth of the United States.
    ``(ll) The term `children' means an individual under the age of 
18.''.

TITLE II--PROHIBITION ON USE OF FUNDS TO FACILITATE THE EXPORTATION OR 
                          PROMOTION OF TOBACCO

SEC. 201. PROHIBITION ON USE OF FUNDS TO FACILITATE THE EXPORTATION OR 
              PROMOTION OF TOBACCO.

    (a) In General.--No funds made available by appropriations or 
otherwise made available may be used by any officer, employee, 
department, or agency of the United States--
            (1) to promote or encourage the export, re-export, sale, 
        manufacture, advertising, promotion, distribution, or use of 
        tobacco or tobacco products to or in a foreign country; or
            (2) to seek, through negotiation or otherwise, the removal 
        or reduction by any foreign country of any restriction or 
        proposed restriction in that country on the importation, 
        export, re-export, sale, manufacture, advertising, promotion, 
        distribution, packaging, labeling, use, content, imposition of 
        tariffs, or taxation, of tobacco or tobacco products.
    (b) Exception.--Subsection (a)(2) shall not apply to any 
restriction or proposed restriction by a foreign country if--
            (1) the restriction is applied in a manner which 
        constitutes a means of arbitrary or unjustifiable 
        discrimination between countries;
            (2) the Secretary of Commerce certifies in writing to 
        Congress that the restriction is being applied in a manner that 
        constitutes a means of arbitrary or unjustifiable 
        discrimination between countries; and
            (3) the Secretary of Health and Human Services certifies to 
        Congress in writing that the restriction is not a reasonable 
        means of protecting the public health.
    (c) Definition.--In this section, the term ``arbitrary or 
unjustifiable discrimination'' means a restriction or proposed 
restriction by a foreign country that--
            (1) is arbitrary or unjustifiable; and
            (2) does not adhere to the principle of national treatment 
        and applies less favorable treatment to goods that are imported 
        into that country than the country applies to like goods that 
        are the product, growth, or manufacture of that country.

        TITLE III--AMERICAN CENTER ON GLOBAL HEALTH AND TOBACCO

SEC. 301. INTERNATIONAL TOBACCO CONTROL EFFORTS.

    Of the funds paid to the United States by tobacco manufacturers in 
accordance with Federal law to implement the proposed resolution of the 
controversy between the tobacco manufacturers and the States adopted 
June 20, 1997, or an increase in the Federal excise tax on tobacco 
products, two percent shall be made available as follows:
            (1) Of the funds to be made available, 50 percent shall be 
        used to carry out the purpose of the American Center on Global 
        Health and Tobacco under section 302.
            (2) Of the funds to be made available, 50 percent shall be 
        made available to the Secretary of Health and Human Services 
        for grants and other forms of assistance to foreign 
        governments, nongovernmental organizations, and international 
        organizations to support tobacco control activities in foreign 
        countries.

SEC. 302. AMERICAN CENTER ON GLOBAL HEALTH AND TOBACCO.

    (a) Findings and Purpose.--
            (1) Findings.--Congress makes the following findings:
                    (A) Tobacco use is estimated to have caused nearly 
                3,000,000 deaths a year worldwide in the early 1990's, 
                and is projected to cause in excess of 10,000,000 
                additional deaths a year globally by 2030, more than 
                any single disease. More than 70 percent of those 
                deaths are expected in developing countries.
                    (B) Many countries are unprepared to address 
                increases in tobacco deaths, including the impact on 
                health systems and health costs. While tobacco 
                consumption in the United States and other established 
market economies has fallen over the last decade, consumption is rising 
in China, India, East Asia, and former socialist economies. Tobacco 
companies in the United States and elsewhere have increasingly targeted 
those markets.
                    (C) Tobacco use markedly reduces good health and 
                threatens to erode the major health gains in life 
                expectancy of the last century. Only HIV/AIDS infection 
                and tobacco are large and growing causes of death and 
                disease worldwide. The total projected deaths from 
                tobacco over the next 10 years likely will exceed 
                deaths from HIV/AIDS, maternal and childhood 
                conditions, and tuberculosis combined.
                    (D) The United States consistently has provided 
                leadership and funding to address the world's most 
                pressing public health needs, including HIV/AIDS, 
                hunger, maternal and child health, and immunization.
                    (E) Through exports and overseas operations, United 
                States tobacco companies sell more cigarettes overseas 
                than they do in the United States. Foreign sales now 
                account for more than half of all sales for the 2 
                leading United States tobacco manufacturers.
                    (F) United States companies spend billions of 
                dollars on aggressive tobacco marketing campaigns 
                overseas that associate smoking with the United States, 
                affluence, freedom, and liberation. In many markets, 
                American companies reach youthful audiences through 
                television and radio advertising, free samples, and 
                other methods that are outlawed in the United States.
                    (G) In light of the role the United States tobacco 
                companies have played in spreading tobacco use 
                globally, and in light of the large financial benefits 
                they continue to enjoy from tobacco exports, it is 
                appropriate that this section be enacted in order to 
                provide assistance and funding for international public 
                education and mass media programs to inform the public 
                about the hazards of tobacco use.
            (2) Purpose.--The purpose of this section is to establish 
        the American Center on Global Health and Tobacco. The Center 
        shall assist organizations in other countries to reduce and 
        prevent the use of tobacco. Activities that the Center shall 
        support include--
                    (A) public education programs that inform the 
                public about the hazards of tobacco use and of 
                environmental tobacco smoke;
                    (B) mass media campaigns, including counter-tobacco 
                advertisements, to reverse the image appeal of pro-
                tobacco messages, especially those that glamorize and 
                ``Westernize'' tobacco use to young people; and
                    (C) education about the economic and societal costs 
                of tobacco use, and effective tobacco use prevention 
                and cessation strategies that are appropriate for the 
                country involved.
    (b) Establishment.--
            (1) In general.--There is established in the District of 
        Columbia a private, nonprofit corporation to be known as the 
        American Center on Global Health and Tobacco (in this section 
        referred to as ``ACT''). ACT shall--
                    (A) not be an agency or establishment of the United 
                States; and
                    (B) except as otherwise provided in this section, 
                be subject to, and have all the powers conferred upon a 
                nonprofit corporation by the District of Columbia 
                Nonprofit Corporation Act (D.C. Code section 29-501 et 
                seq.).
            (2) Relation to united states.--Nothing in this section 
        shall be construed as making ACT an agency or establishment of 
        the United States, or as making the members of the Board of 
        ACT, or its employees, officers or employees of the United 
        States.
            (3) Relation to nongovernmental organizations.--ACT shall 
        have a limited staff, and, to the maximum extent practicable, 
        utilize the available experience and talents of nongovernmental 
        organizations with specialized experience in health, education, 
        media, and tobacco.
            (4) Governing board.--ACT shall be governed by a board of 
        up to 25 members including--
                    (A) on a bipartisan basis, Members of the Senate 
                and of the House of Representatives;
                    (B) the heads of American public health 
                organizations;
                    (C) the heads of American media, marketing, and 
                other nongovernment institutions and corporations; and
                    (D) individuals active in education, public health, 
                and other relevant activities.
            (5) Eligibility for service on the governing board.--No 
        person who receives benefits, either directly or indirectly, 
from a company which sells or manufactures tobacco products may serve 
on the Governing Board of ACT.
            (6) International advisory council.--An International 
        Advisory Council consisting of representatives from key global, 
        regional, and national public health organizations, and leading 
        individual educators and health professionals shall provide 
        advisory assistance to ACT.
    (c) Requirements for Eligibility for Annual Appropriations.--
            (1) Oversight.--ACT and its grantees shall be subject to 
        the oversight and supervision of Congress, and shall annually 
        submit a report of its activities to Congress in accordance 
        with paragraph (5)(A)(iii).
            (2) Compliance.--
                    (A) Funding contingent on compliance.--Annual 
                appropriations may be made to ACT under this section 
                only if ACT complies with the requirements specified in 
                this section.
                    (B) Use of funds.--ACT may only fund programs for 
                private sector groups, and may not carry out programs 
                directly. ACT may provide funding only for programs 
                which are consistent with the purposes of this section.
            (3) Salaries and compensation.--
                    (A) No other source of compensation.--Officers and 
                employees of ACT may not receive any salary or other 
                compensation from any source other than ACT for 
                services performed for ACT.
                    (B) United states officers and employees.--An 
                individual who is an officer or employee of the United 
                States who also serves on the Board of Directors or as 
                an officer or employee of ACT, may not receive any 
                compensation or travel expenses in connection with 
                services performed for ACT.
            (4) Stocks and dividends.--ACT shall not issue any shares 
        of stock or declare or pay any dividends.
            (5) Audits.--
                    (A) Independent public accountants.--
                            (i) In general.--The accounts of ACT shall 
                        be audited annually in accordance with 
                        generally accepted auditing standards by 
                        independent certified public accountants or 
                        independent licensed public accountants 
                        certified or licensed by a regulatory authority 
                        of a State or other political subdivision of 
                        the United States. The audits shall be 
                        conducted at the place or places where the 
                        accounts of ACT are normally kept. All books, 
                        accounts, financial records, reports, files, 
                        and all other papers, things, or property 
                        belonging to or in use by ACT and necessary to 
                        facilitate the audits shall be made available 
                        to the person or persons conducting the audits, 
                        and full facilities for verifying transactions 
                        with any assets held by depositories, fiscal 
                        agents, and custodians shall be afforded to 
                        such person or persons.
                            (ii) Content of audit.--The report of each 
                        audit conducted under clause (i) shall be 
                        included in the annual report required under 
                        this subsection. The audit report shall set 
                        forth the scope of the audit and include such 
                        statements as are necessary to present fairly 
                        ACT's assets and liabilities, surplus or 
                        deficit, with an analysis of the changes 
                        therein during the year, supplemented in 
                        reasonable detail by a statement of the income 
                        and expenses of ACT during the year, and a 
                        statement of the application of funds, together 
                        with the independent auditor's opinion of those 
                        statements.
                            (iii) Report.--Not later than December 31 
                        of each year, ACT shall submit an annual report 
                        for the preceding fiscal year to the President 
                        for transmittal to Congress. The report shall 
                        include a comprehensive and detailed report of 
                        ACT's operations, activities, financial 
                        condition, and accomplishments under this 
                        section and may include such recommendations as 
                        ACT deems appropriate.
                    (B) Comptroller general.--
                            (i) In general.--The financial transactions 
                        of ACT for each fiscal year may be audited by 
                        the Comptroller General in accordance with such 
                        principles and procedures and under such rules 
                        and regulations as the Comptroller General may 
                        prescribe. Any such audit shall be conducted at 
                        the place or places where accounts of ACT 
are normally kept. The Comptroller General shall have access to all 
books, accounts, records, reports, files, and all other papers, things, 
or property belonging to or in use by ACT pertaining to its financial 
transactions and necessary to facilitate the audit. All books, 
accounts, records, reports, files, papers, and property of ACT shall 
remain in the possession and custody of ACT.
                            (ii) Report.--A report of each audit shall 
                        be made by the Comptroller General to Congress. 
                        A copy of each report shall be furnished to the 
                        President and to ACT at the time the report is 
                        submitted to Congress.
            (6) Recordkeeping.--
                    (A) In general.--ACT shall ensure that each 
                recipient of assistance from ACT under this section 
                keeps such records as may be reasonably necessary to 
                fully disclose the amount and the disposition by such 
                recipient of the proceeds of such assistance, the total 
                cost of the project or undertaking in connection with 
                which such assistance is given or used, and the amount 
                and nature of that portion of the cost of the project 
                or undertaking supplied by other sources, and such 
                other records as will facilitate an effective audit.
                    (B) Access.--ACT shall ensure that it, or any of 
                its duly authorized representatives, shall have access 
                for the purpose of audit and examination to any books, 
                documents, papers, and records of each recipient of 
                assistance from ACT that are pertinent to assistance 
                provided through ACT under this section.

               TITLE IV--PREVENTION OF TOBACCO SMUGGLING

SEC. 401. DEFINITIONS.

    (a) Incorporation of Certain Definitions.--In this title, the terms 
``cigar'', ``cigarette'', ``person'', ``pipe tobacco'', ``smokeless 
tobacco'', ``State'', ``tobacco product'', and ``United States'' shall 
have the meanings given such terms in sections 5702(a), 5702(b), 
7701(a)(1), 5702(o), 5702(n)(1), 3306(j)(1), 5702(c), and 3306(j)(2) 
respectively of the Internal Revenue Code of 1986.
    (b) Other Definitions.--In this title:
            (1) Affiliate.--The term ``affiliate'' means any one of 2 
        or more persons if 1 of such persons has actual or legal 
        control, directly or indirectly, whether by stock ownership or 
        otherwise, of the other or others of such persons, and any one 
        of 2 or more persons subject to common control, actual or 
        legal, directly or indirectly, whether by stock ownership or 
        otherwise.
            (2) Interstate of foreign commerce.--The term ``interstate 
        or foreign commerce'' means commerce between any State and any 
        place outside thereof, or commerce within any Territory or the 
        District of Columbia, or between points within the same State 
        but through any place outside thereof.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (4) Package.--The term ``package'' means the innermost 
        sealed container irrespective of the material from which such 
        container is made, in which a tobacco product is placed by the 
        manufacturer and in which such tobacco product is offered for 
        sale to a member of the general public.
            (5) Retailer.--The term ``retailer'' means any dealer who 
        sells, or offers for sale, any tobacco product to any person 
        other than a wholesaler.

SEC. 402. TOBACCO PRODUCT LABELING REQUIREMENTS.

    (a) In General.--It shall be unlawful for any person to sell or 
ship or deliver for sale or shipment, or otherwise introduce in 
interstate or foreign commerce, to receive therein, or to remove from 
customs custody for use, any tobacco product unless such product is 
packaged and labeled in conformity with this section.
    (b) Labeling.--
            (1) Identification.--Not later than 1 year after the date 
        of enactment of this title, the Secretary shall promulgate 
        regulations that require each manufacturer of tobacco products 
        to legibly print a unique serial number on all packages of 
        tobacco products manufactured for sale or distribution. Such 
        serial number shall be designed to enable the Secretary to 
        identify the manufacturer of the product, and the location and 
        date of manufacture. The Secretary shall determine the size and 
        location of the serial number.
            (2) Country of final destination.--Each package of a 
        tobacco product that is exported shall be labeled with the name 
        of the country of final destination. The Secretary shall 
        promulgate regulations to determine the size and location of 
        the label and under what circumstances a waiver of this 
        paragraph shall be granted.
    (c) Prohibition on Alteration.--It shall be unlawful for any person 
to alter, mutilate, destroy, obliterate, or remove any mark or label 
required under this title upon a tobacco product in or affecting 
commerce, except as authorized by Federal law or except pursuant to 
regulations of the Secretary authorizing relabeling for purposes of 
compliance with the requirements of this section or of State law.

SEC. 403. REQUIREMENTS FOR THE TRACKING OF TOBACCO PRODUCTS.

    (a) Posting of Bond.--
            (1) In general.--It shall be unlawful for any person to 
        export any tobacco product unless such person--
                    (A) has posted with the Secretary a tobacco product 
                bond in accordance with this section for such product 
                that contains a disclosure of the country to which such 
                product will be exported; and
                    (B) receives a written statement from the recipient 
                of the tobacco products involved that such person--
                            (i) will not knowingly and willfully 
                        violate any law or regulation of such country 
                        with respect to such products; and
                            (ii) has never been convicted of any 
                        offense with respect to tobacco products.
            (2) Regulations.--The Secretary shall promulgate 
        regulations that determine the frequency and the amount of each 
        bond that must be posted under paragraph (1), but in no case 
        shall such amount be less than an amount equal to the Federal 
        tax imposed under chapter 52 of the Internal Revenue Code of 
        1986 on the value of the shipment of the products involved if 
        such products were consumed within the United States.
    (b) Return of Bond.--The Secretary shall return a bond posted under 
subsection (a) upon a determination by the Secretary (based on 
documentation provided by the person who posted the bond in accordance 
with regulations promulgated by the Secretary) that the tobacco 
products to which the bond applies--
            (1) have been received in the country of final destination 
        as designated in the bond; or
            (2) have been stolen or destroyed.

SEC. 404. TOBACCO PRODUCT PERMITS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this title, the Secretary shall establish a program under which 
tobacco product permits are issued to persons desiring to sell or ship, 
or deliver for sale or shipment, or otherwise introduce in interstate 
or foreign commerce, or to receive therein, or to remove from customs 
custody for use, any tobacco product.
    (b) Conditions.--The issuance of a permit to a manufacturer under 
this section shall be conditioned upon the compliance of the 
manufacturer with the requirements of this title and with all Federal 
laws relating to tobacco products.
    (c) Revocation, Suspension, and Annulment.--The program established 
under subsection (a) shall permit the Secretary to revoke, suspend, or 
annul a permit issued under this section if the Secretary determines 
that the terms or conditions of the permit have not been complied with. 
Prior to any action under this subsection, the Secretary shall provide 
the permittee with due notice and the opportunity for a hearing.
    (d) Records and Audits.--The Secretary may, under the program 
established under subsection (a), require permit holders to keep 
records concerning the chain of custody of the tobacco products that 
are the subject of the permit and make such records available to the 
Secretary for inspection and audit.
    (e) Retailers.--This section shall not apply to retailers of 
tobacco products, except that retailers shall maintain commercial 
records of receipt, and such records shall be available to the 
Secretary for inspection and audit.

SEC. 405. PROHIBITIONS.

    (a) Importation and Sale.--It shall be unlawful, except pursuant to 
a permit issued by the Secretary under section 504--
            (1) to engage in the business of importing into the United 
        States tobacco products; or
            (2) for any person so engaged to sell, offer, or deliver 
        for sale, contract to sell, or ship, in or affecting commerce, 
        directly or indirectly or through affiliate, tobacco products 
        so imported.
    (b) Manufacture and Sale.--It shall be unlawful, except pursuant to 
a permit issued by the Secretary under section 504--
            (1) to engage in the business of manufacturing, packaging 
        or warehousing tobacco products; or
            (2) for any person so engaged to sell, offer, or deliver 
        for sale, contract to sell, or ship, in interstate or foreign 
        commerce, directly or indirectly or through an affiliate, 
        tobacco products so manufactured, packaged or warehoused.
    (c) Wholesale.--It shall be unlawful, except pursuant to a permit 
issued by the Secretary under section 504--
            (1) to engage in the business of purchasing for resale at 
        wholesale tobacco products; or
            (2) for any person so engaged to receive or sell, offer or 
        deliver for sale, contract to sell, or ship, in interstate or 
        foreign commerce, directly or indirectly or through an 
        affiliate, tobacco products so purchased.
    (d) Effective Date.--The provisions of this section shall become 
effective on the date that is 180 days after the date of enactment of 
this title.

SEC. 406. PRICING AND LABELING OF PRODUCTS SOLD ON MILITARY 
              INSTALLATIONS OR ON INDIAN RESERVATIONS.

    (a) Military Installations.--
            (1) In general.--The Secretary of Defense, in consultation 
        with the Secretary, shall promulgate regulations to limit the 
        sale of tobacco products on a military installation (as defined 
        in section 2801(c)(2) of title 10, United States Code) to--
                    (A) with respect to cigarettes, 1 carton per 
                individual per day; and
                    (B) with respect to noncigarette tobacco products, 
                a reasonable amount per day as determined appropriate 
                by the Secretary of Defense under such regulations.
            (2) Label.--The regulations under paragraph (1) shall 
        require that each package of a tobacco product that is sold on 
        a military installation be labeled as such. Such regulations 
        shall include requirements for the size and location of the 
        label.
    (b) Indian Tribes.--The Secretary, in consultation with the 
Secretary of Interior, shall promulgate regulations that require that 
each package of a tobacco product that is sold on an Indian reservation 
(as defined in section 403(9) of the Indian Child Protection and Family 
Violence Prevention Act (25 U.S.C. 3202(9))) be labeled as such. Such 
regulations shall include requirements for the size and location of the 
label.

SEC. 407. PROHIBITION AGAINST SALE OF TOBACCO PRODUCTS IN OR TO DUTY-
              FREE SHOPS OR FORWARDING THROUGH OR MANUFACTURE IN TRADE 
              ZONES.

    (a) Duty-Free Shops.--The Secretary shall promulgate regulations to 
enforce a reasonable per day limit on the sale of tobacco products at 
duty-free shops.
    (b) Trade Zones.--No person may forward through or manufacture a 
tobacco product in any foreign trade zone, as defined for purposes of 
the Act of June 18, 1934 (19 U.S.C. 81a et seq.).

SEC. 408. JURISDICTION; PENALTIES; COMPROMISE OF LIABILITY.

    (a) Jurisdiction.--The district courts of the United States, and 
the United States court for any Territory or of the District where the 
offense is committed or threatened or of which the offender is an 
inhabitant or has its principal place of business, are vested with 
jurisdiction of any suit brought by the Attorney General in the name of 
the United States, to prevent and restrain violations of any of the 
provisions of this title.
    (b) Penalties.--The provisions of section 3571 of title 18, United 
States Code, shall apply to any person convicted of violating any of 
the provisions of this title as if such person were convicted of a 
felony under such title.
    (c) Compromise of Liability.--The Secretary is authorized, with 
respect to any violation of this title, to compromise the liability 
arising with respect to a violation of this title--
            (1) upon payment of a sum not in excess of $10,000 for each 
        offense, to be collected by the Secretary and to be paid into 
        the Treasury as miscellaneous receipts; and
            (2) in the case of repetitious violations and in order to 
        avoid multiplicity of criminal proceedings, upon agreement to a 
        stipulation, that the United States may, on its own motion upon 
        5 days' notice to the violator, cause a consent decree to be 
        entered by any court of competent jurisdiction enjoining the 
        repetition of such violation.

SEC. 409. AMENDMENTS TO THE CONTRABAND CIGARETTE TRAFFICKING ACT.

    (a) Definitions.--Section 2341 of title 18, United States Code, is 
amended--
            (1) in paragraph (2)--
                    (A) by striking ``60,000'' and inserting 
                ``30,000''; and
                    (B) by inserting after ``payment of cigarette 
                taxes,'' the following: ``or in the case of a State 
                that does not require any such indication of tax 
                payment, if the person in possession of the cigarettes 
                is unable to provide any evidence that the cigarettes 
                are moving legally in interstate commerce,''; and
            (2) in paragraph (4), by striking ``and'' at the end;
            (3) in paragraph (5), by striking the period and inserting 
        a semicolon; and
            (4) by adding at the end the following:
            ``(6) the term `tobacco product' means cigars, cigarettes, 
        smokeless tobacco, and pipe tobacco (as such terms are defined 
        in section 501); and
            ``(7) the term `contraband tobacco product' means a 
        quantity in excess of 30,000 of any tobacco product that is 
        manufactured, sold, shipped, delivered, transferred, or 
        possessed in violation of Federal laws relating to the 
        distribution of tobacco products.''.
    (b) Unlawful Acts.--Section 2342 of title 18, United States Code, 
is amended--
            (1) in subsection (a), by inserting ``or contraband tobacco 
        products'' before the period;
            (2) in subsection (b)--
                    (A) by striking ``cigarettes'' and inserting 
                ``tobacco products'';
                    (B) by striking ``60,000'' and inserting 
                ``30,000''; and
                    (C) by inserting before the period the following: 
                ``or knowingly to fail to maintain distribution 
                records, alter or obliterate required markings, or 
                interfere with any inspection as required or prohibited 
                under Federal law with respect to such quantity of 
                tobacco products''; and
            (3) by adding at the end the following:
    ``(c) It shall be unlawful for any person knowingly to transport 
tobacco products under a false bill of lading or without any bill of 
lading.''.
    (c) Recordkeeping.--Section 2343 of title 18, United States Code, 
is amended--
            (1) by striking ``cigarettes'' each place that such appears 
        and inserting ``tobacco products'';
            (2) in subsection (a), by striking ``60,000'' and inserting 
        ``30,000'';
            (3) in subsection (b), by striking ``60,000'' and inserting 
        ``30,000''.
    (d) Penalties.--Section 2344 of title 18, United States Code, is 
amended--
            (1) in subsection (c), by inserting ``or contraband tobacco 
        products'' after ``cigarettes''; and
            (2) by adding at the end the following:
    ``(d) Any proceeds from the unlawful distribution of tobacco 
products shall be subject to seizure and forfeiture under this 
chapter.''.

SEC. 410. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary to carry out this title.

                       TITLE V--SENSE OF CONGRESS

SEC. 501. SENSE OF CONGRESS.

    It is the sense of Congress that the United States Government 
should support the development, adoption, and implementation of the 
International Framework Convention on Tobacco Control through all 
available resources, including direct financial support, technical 
assistance, and any other appropriate measure.
                                 <all>