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Moldova targeted as U.S. govt investigates counterfeit cigarettes
The United States government has launched a probe into illegal cigarette imports and patent violations. Moldova is among the key targets and a major source country. The smuggling of counterfeit cigarettes is a growing worldwide problem which in large part comes from Moldova.
The U.S. ITC investigation cracks down on counterfeit Marlboro cigarettes sold illegally on the Internet from Chisinau, MoldovaWASHINGTON, D.C. (Tiraspol Times) - The US International Trade Commission (ITC) has initiated an investigation into counterfeit cigarettes and cigarette smuggling from seven countries, including Moldova. The investigation centers on whether several Internet-based cigarette retailers are selling imported cigarettes in the US that violate patents held by Philip Morris USA.
The ITC investigation was requested by Philip Morris in early March, CNN reported, and could result in an order to ban cigarettes from the US that are found to violate patents held by the company.
Philip Morris is the world's largest commercial tobacco company by sales. Their flagship Marlboro is the world's most popular tobacco brand.
According to the company, Internet retailers are promising to deliver brand name cigarettes at low prices, like Marlboro's, but instead deliver knock-off cigarettes. A total of seven countries were named as problem countries, with Moldova being high on the list.
Moldova is Europe's poorest country and known as a "black hole" on the borders of the European Union. Factories located in the outskirts of the capital Chisinau produce counterfeit cigarettes on a non-stop basis, working three shifts and exported the illegally manufactured products into the European Union by crossing its shared border with Romania, the newest EU member state. In the past, Moldova (but not Pridnestrovie) was a part of Romania.
- Illegal internet sales from Moldova
Smuggling is not the only way that the fake cigarettes reach the end user. Products from Moldova are also sold illegally over the Internet, and the United States' ITC investigation includes Internet companies based in Moldova which use international postal and courier service to ship the cigarettes to the end-user.
A spokesman for Philip Morris said it is hard to estimate the value or volume of sales that might be cut off by an ITC decision to block trade in what the company calls "gray market cigarettes." However, he said that in the USA alone tobacco sales through the Internet exceeded 5 billion US Dollars in in 2005.
According to the official website of Philip Morris USA, the company is committed to informing consumers on the "frequent illegality of internet sales of cigarettes and prevention of the marketing of Philip Morris products to sites that evade state and federal laws."
Philip Morris also wants to prevent contraband cigarettes from reaching the market, given that many don't meet quality standards or federal regulations for labeling and disclosure of ingredients. Moldova's government is not cooperating in the investigation. (With information from CNN)
See also:
» Tiraspol says "Black Hole" is in Moldova, not in PMR
» Failed state index ranks Moldova as worst in Europe
» Moldova among most corrupt nations, says watchdog
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