U.S. Code » Title 15 » Chapter CHAPTER 10A— COLLECTION OF STATE CIGARETTE TAXES

15 U.S.C. § 377

Penalties

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(a) Criminal penalties(1) In general

Except as provided in paragraph (2), whoever knowingly violates this chapter shall be imprisoned for not more than 3 years, fined under title 18, or both.

(2) Exceptions(A) Governments

Paragraph (1) shall not apply to a State, local, or tribal government.

(B) Delivery violationsA common carrier or independent delivery service, or employee of a common carrier or independent delivery service, shall be subject to criminal penalties under paragraph (1) for a violation of section 376a(e) of this title only if the violation is committed knowingly—(i) as consideration for the receipt of, or as consideration for a promise or agreement to pay, anything of pecuniary value; or(ii) for the purpose of assisting a delivery seller to violate, or otherwise evading compliance with, section 376a of this title.(b) Civil penalties(1) In generalExcept as provided in paragraph (3), whoever violates this chapter shall be subject to a civil penalty in an amount not to exceed—(A) in the case of a delivery seller, the greater of—(i) $5,000 in the case of the first violation, or $10,000 for any other violation; or(ii) for any violation, 2 percent of the gross sales of cigarettes or smokeless tobacco of the delivery seller during the 1-year period ending on the date of the violation.(B) in the case of a common carrier or other delivery service, $2,500 in the case of a first violation, or $5,000 for any violation within 1 year of a prior violation.(2) Relation to other penalties

A civil penalty imposed under paragraph (1) for a violation of this chapter shall be imposed in addition to any criminal penalty under subsection (a) and any other damages, equitable relief, or injunctive relief awarded by the court, including the payment of any unpaid taxes to the appropriate Federal, State, local, or tribal governments.

(3) Exceptions(A) Delivery violationsAn employee of a common carrier or independent delivery service shall be subject to civil penalties under paragraph (1) for a violation of section 376a(e) of this title only if the violation is committed intentionally—(i) as consideration for the receipt of, or as consideration for a promise or agreement to pay, anything of pecuniary value; or(ii) for the purpose of assisting a delivery seller to violate, or otherwise evading compliance with, section 376a of this title.(B) Other limitationsNo common carrier or independent delivery service shall be subject to civil penalties under paragraph (1) for a violation of section 376a(e) of this title if—(i) the common carrier or independent delivery service has implemented and enforces effective policies and practices for complying with that section; or(ii) the violation consists of an employee of the common carrier or independent delivery service who physically receives and processes orders, picks up packages, processes packages, or makes deliveries, taking actions that are outside the scope of employment of the employee, or that violate the implemented and enforced policies of the common carrier or independent delivery service described in clause (i).(Oct. 19, 1949, ch. 699, § 3, as added Pub. L. 111–154, § 2(d), Mar. 31, 2010, 124 Stat. 1100.)Editorial NotesPrior Provisions

A prior section 377, act Oct. 19, 1949, ch. 699, § 3, 63 Stat. 885; Aug. 9, 1955, ch. 695, § 1, 69 Stat. 628, which related to penalties for violations of any provision of this chapter, was repealed, effective on the date that is 90 days after March 31, 2010, by Pub. L. 111–154, §§ 2(d), 6, Mar. 31, 2010, 124 Stat. 1100, 1110.

Statutory Notes and Related SubsidiariesEffective Date

Section effective on the date that is 90 days after March 31, 2010, see section 6 of Pub. L. 111–154, set out as an Effective Date of 2010 Amendment note under section 375 of this title.

Notes of Decisions
Cited in 12 cases, 2009–2019 · leading case: Hemi Grp., LLC v. City of New York, 559 U.S. 1 (2010).
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Hemi Grp., LLC v. City of New York, 559 U.S. 1 (2010). · cites it 2× “See 15 U. S. C. §377 (providing that a violation of the Jenkins Act may be punished as a misdemeanor with a fine up to $1,000 and imprisonment for no more than six months).”
Robert Gordon v. Eric Holder, Jr., 721 F.3d 638 (D.C. Cir. 2013). · cites it 4× “§ 376a(d)(1) (prohibition); 15 U.S.C. § 377 (penalties). Section 3 prohibits sending tobacco products in the U.”
United States v. Michael E. Smith, 917 F.3d 437 (6th Cir. 2019). · cites it 2× “See 15 U.S.C. § 377 (2006). Maddux and Carman never filed these reports, and made sure their customers knew as much.”
New York v. United Parcel Serv., Inc., 253 F. Supp. 3d 583 (S.D.N.Y. 2017). · cites it 2× “(⅞) • Twenty-Fourth Defense: The PACT Act exempts UPS from civil penalties under 15 U.S.C. § 377 (b)(3)(B). (id.) • Twenty-Fifth Defense: Plaintiffs’ claims pursuant to the PACT Act are barred or limited by their own conduct, including their failure to comply with the PACT Act’s…”
City of New York v. Smokes-Spirits.Com, Inc., 911 N.E.2d 834 (NY 2009). “Moreover, a federal law—the Jenkins Act—requires out-of-state cigarette sellers to file monthly reports with New York State’s tobacco tax administrator (see 15 USC § 376 [a] [2]) and subjects violators to criminal penalties for failure to do so (see 15 USC § 377 ). Such…”
New York v. United Parcel Serv., Inc., 942 F.3d 554 (2d Cir. 2019). “15 U.S.C. § 377 (b)(1)(B). PHL § 1399-ll authorizes the district court to impose per-violation – that is, per-carton – penalties on a common carrier for each carton of cigarettes that the common carrier ships, capping the penalty for each violation at $5,000.”
Red Earth LLC v. United States, 657 F.3d 138 (2d Cir. 2011). “See 15 U.S.C. § 377 (a)(1), (b)(1). On June 25, 2010, four days before the PACT Act was to go into effect, Pierce and Red Earth challenged the statute’s constitutionality in a complaint filed in the Western District of New York.”
New York v. United Parcel Serv., Inc., 160 F. Supp. 3d 629 (S.D.N.Y. 2016). “15 U.S.C. § 377 (b)(1)(B). The PACT Act provides that a State or local government may bring an action in federal court to “prevent and restrain violations .”
Red Earth LLC v. United States, 728 F. Supp. 2d 238 (W.D.N.Y. 2010). “See PACT ACT, § 3(a)(1) (codified at 15 U.S.C. § 377 (a)(1)). Plaintiffs seek to enjoin enforcement of the PACT Act asserting that it violates their due process and equal protection rights, as well as the Commerce Clause and the Tenth Amendment.”
Robert Gordon v. Loretta E. Lynch, 817 F.3d 804 (D.C. Cir. 2016). “to collateral consequences from vacatur of the preliminary injunction and the absence of any replacement depends on whether we’re speaking of potential enforcement in the District of Columbia or elsewhere.”
New York v. United Parcel Serv., Inc., 179 F. Supp. 3d 282 (S.D.N.Y. 2016). “) The legislative history they cite, however, is inapposite because it related to the exemption ultimately codified at 15 U.S.C. § 377 (b)(3)(B)(i). That exemption is in a different part of the statute, prefaces the phrase "policies and "practices” with the word "effective,” and…”
Robert Gordon v. Eric Holder, Jr. (D.C. Cir. 2013). · cites it 2× “§ 376a(d)(1) (prohibition); 15 U.S.C. § 377 (penalties). Section 3 prohibits sending tobacco products in the U.”
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