Important Information
Effective January 1, 2003
During the past few years, changes in how companies handling cigarettes and roll-your-own tobacco products can do business in the State of North Carolina have been implemented as a result of litigation against tobacco manufacturers. In 1998 four of the largest tobacco manufacturers settled lawsuits filed by North Carolina, 45 other states, the District of Columbia and 5 United States Territories by agreeing to certain restrictions on their marketing and to the payment of compensation to offset State costs arising from the health problems associated with the use of their tobacco products. This agreement is known as the Master Settlement Agreement, or MSA.
Tobacco manufacturers who wish to sell their product in North Carolina are subject to two important pieces of legislation. The first piece of legislation is the Tobacco Escrow Statute, see N.C.G.S. § 66-290; N.C.G.S. § 66-291. Under the Tobacco Escrow Statute tobacco manufacturers must either become a party to the MSA, and comply with its terms, or establish an escrow account and pay into it in accordance with N. C. Gen. Stat. § 66-291 as a "non-participating manufacturer." A tobacco manufacturer who fails to comply with either of these two requirements, yet continues to market its product in North Carolina, is subject to litigation and civil penalties.
The second piece of legislation is the Brand Listing Statute. See N.C.G.S. § 66-292; N.C.G.S. § 66-293; N.C.G.S. § 66-294; N.C.G.S. § 66-294.1. It is complementary to the first piece. Effective January 1, 2003, the Brand Listing Statute mandates that all manufacturers who wish to sell their product in North Carolina must first qualify to be included on the Approved Tobacco List issued by the Attorney General. If a distributor, manufacturer or other person who is required to pay tobacco excise tax sells or possesses for sale in North Carolina, a brand not included on the Attorney General list, the product is contraband, and civil penalties will apply.
A tobacco product manufacturer can start the process to be added to the list by submitting a completed Application form. For questions contact Ms. Linda Emory at (919) 716-6904.
For additional information on the Master Settlement Agreement visit the North Carolina Department of Revenue web site.
Acrobat Instructions
You will need Acrobat Reader to read the Tobacco Lists provided above. If you do not have Acrobat currently installed on your PC, you can download a copy by clicking on the Acrobat Reader Image below. You can use the binoculars(Find) icon on the Acrobat tool bar to search the PDF document for the brand or manufacturer you are interested in looking up.