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Thread: NY authorities seek $872 million fine on UPS for cigarette shipments

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    Default NY authorities seek $872 million fine on UPS for cigarette shipments

    I remember something similar with UPS and Fedex a few years ago. Personally I don't see how they should be responsible for what is in a shipment that they may not see. I think that is what is mentioned in this article too.
    (Reuters) - New York city and state authorities urged a federal judge on Wednesday to impose a fine of $872 million against United Parcel Service for allegedly delivering untaxed cigarettes from smoke shops on Indian reservations.

    The closing arguments came in a lawsuit over whether UPS illegally shipped more than 683,000 cartons of untaxed cigarettes, mostly from reservation smoke shops. The lawsuit is part of a broader effort by the state to combat smuggling of cigarettes from lower-tax areas.
    The state and city have brought a similar lawsuit against UPS rival FedEx Corp (FDX.N) that is pending.
    "They pursue UPS rather than the criminal cigarette traffickers who profit from selling untaxed cigarettes and have relied on convicted felons as the witnesses they called at trial," the company said in a statement.
    http://finance.yahoo.com/news/ny-aut...175200834.html

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    Default Re: NY authorities seek $872 million fine on UPS for cigarette shipments

    Much smarter minds than me are arguing this case but it seems like a stupid law suit to me. IMO UPS and FedEx legally picked up sealed cartons at point A and delivered them sealed to point B. Technically the carrier didn't actually know what was in the cartons. The carrier wasn't involved in any illegal sales and didn't profit from any illegal activities. I don't know the law on tobacco but it seems to me that bulk untaxed items aren't illegal until they are sold retail.

    Maybe UPS and FedEx should refuse to make any pick ups at all indian reservations because they might try to ship untaxed cigarettes in cartons marked rubber tomahawks to New York State. I can imagine what kind of lawsuit the native Americans would file over it.

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    Default Re: NY authorities seek $872 million fine on UPS for cigarette shipments

    This is BS. Just another attack by government on the trucking industry.
    What the hell, in addition to all the rules and regulations already imposed on the industry, are UPS and FredX supposed to be
    federal tax agents too? It's not their responsibility to see the tax is paid. I guess the driver should open each case, and each
    carton and inspect each pack for the NY tax stamp!

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    Default Re: NY authorities seek $872 million fine on UPS for cigarette shipments

    Maybe they shouldn't single out cigarettes with such high taxes. No doubt the US Postal Service does the same thing. Long time ago I used to get a carton here or there delivered. These lawsuits stopped it though.
    The cigarette tax has ensured that I will vote for no Democrats next Tuesday.

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    Default Re: NY authorities seek $872 million fine on UPS for cigarette shipments

    Is the state tax paid on ANYTHING bought off the internet?
    and if so shouldn't anything sold from tax free Delaware be subject to lawsuits.
    Should everything delivered from Delaware be subject to fines to the trucking company?

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    Default Re: NY authorities seek $872 million fine on UPS for cigarette shipments

    Here we have a very big union company.
    The unions support the Democrats.
    Here we have a definite Democrat policy of taxing the hell out of tobacco. That tax has the insurance industry at root. The insurance companies walk with the Dems too.

    Who do the Dems favor?
    Not the union company.
    But the insurance companies.

    Who got Obama elected?
    Alot of union money and votes.
    What did they use us for?
    Selling Obamacare for the insurance companies.
    Who just got a 7% increase in Obamacare costs?
    The Central PA Teamsters Health & Welfare fund.
    Who gets paid?
    The insurance companies.
    We already had great insurance.
    Who's funding Hillary?
    The 4 biggest banks. Finance.
    Who wrote our new contracts.....the banks.
    Time to not keep being used by the Democrats imo.

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    Default Re: NY authorities seek $872 million fine on UPS for cigarette shipments

    I used to purchase diesel fuel on Indian reservations that sold motor fuel. Why ? Because it was cheaper without the federal tax. That has stopped too.
    Every state, and the feds, want their tax revenue. After all, that is how they finally stopped Al Capone. Tax evasion.
    I differ on some others thoughts here. I don't care if there is a tax on smoke, booze or other consumer items that I consider frivolous. Don't want to pay the tax ? Don't smoke. Don't drink. Don't watch cable TV.
    I don't want to pay a tax on every item I purchase in New Jersey either ( except food and clothes ) but each year I spend thousands in additional taxes on items I either want, or need.

    As for the lawsuit ... it is BS. BUT ... UPS knew they were picking up cigs, or other untaxed items. Think about it ... what does an Indian reservation make ? Nothing ! They were simply re-selling untaxed items.
    UPS will negotiate a settlement. ( my prediction )

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    Default Re: NY authorities seek $872 million fine on UPS for cigarette shipments

    Quote Originally Posted by fxstc07 View Post
    I used to purchase diesel fuel on Indian reservations that sold motor fuel. Why ? Because it was cheaper without the federal tax. That has stopped too.
    Every state, and the feds, want their tax revenue. After all, that is how they finally stopped Al Capone. Tax evasion.
    I differ on some others thoughts here. I don't care if there is a tax on smoke, booze or other consumer items that I consider frivolous. Don't want to pay the tax ? Don't smoke. Don't drink. Don't watch cable TV.
    I don't want to pay a tax on every item I purchase in New Jersey either ( except food and clothes ) but each year I spend thousands in additional taxes on items I either want, or need.

    As for the lawsuit ... it is BS. BUT ... UPS knew they were picking up cigs, or other untaxed items. Think about it ... what does an Indian reservation make ? Nothing ! They were simply re-selling untaxed items.
    UPS will negotiate a settlement. ( my prediction )
    The reservations here in NM make a lot of jewelry, rugs and pottery. Just a thought.......

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    Default Re: NY authorities seek $872 million fine on UPS for cigarette shipments

    Quote Originally Posted by ABFwife View Post
    The reservations here in NM make a lot of jewelry, rugs and pottery. Just a thought.......
    You know, I think I typed before I thought about that. But doesn't most of those items sell locally, at the reservation, or nearby stores for the tourist trade ? With the cigarettes, they must have been shipping hundreds of cartoons a day. Plus the cigarette manufacturers ( or the wholesale middleman ) must have seen the amount of sales going to them. It's all questionable.

    On another note, New Jersey has always had a strong enforcement of the illegal cigarette trade. The New Jersey Turnpike is a prime corridor to move lower taxed smokes from the south to the big city. In my youth I purchased a few cars from the state at auction that were confiscated for running smokes. The back seats were removed, they had air shocks on the rear, and they were all high mileage cars. That shows how much those folks traveled up and down the coast moving low taxed smokes.

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    Default Re: NY authorities seek $872 million fine on UPS for cigarette shipments

    Quote Originally Posted by slavenomore View Post
    Here we have a very big union company.
    The unions support the Democrats.
    Here we have a definite Democrat policy of taxing the hell out of tobacco. That tax has the insurance industry at root. The insurance companies walk with the Dems too.

    Who do the Dems favor?
    Not the union company.
    But the insurance companies.

    Who got Obama elected?
    Alot of union money and votes.
    What did they use us for?
    Selling Obamacare for the insurance companies.
    Who just got a 7% increase in Obamacare costs?
    The Central PA Teamsters Health & Welfare fund.
    Who gets paid?
    The insurance companies.
    We already had great insurance.
    Who's funding Hillary?
    The 4 biggest banks. Finance.
    Who wrote our new contracts.....the banks.
    Time to not keep being used by the Democrats imo.
    A definite democrat policy taxing the hell out of tobacco? This is a righty state I live in Slave. Mormons shun booze, (invested in Jack Daniels) tobacco, caffeine.(invested heavily in Coca-Cola) We pay a hefty "sin" tax around here. These items I listed have been linked to health problems. Do insurance companies profit from us using our insurance benefits?

    Sent from my SGH-T399 using Tapatalk
    ABFwife likes this.

 

 
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