Archive for March, 2005

Top Story N. 17: Respecting the Rules

Philip Morris "Plus 173"

Philip Morris has declared to the Canadian government that "Prohibiting the use of the terms "Light" and "Mild" on tobacco packaging was impermissible under numerous trade rules". Also in the judgment entered on March 11, 2005 , the action of Yesmoke would have been impermissible under numerous trade rules.

Gun, Knife and CardsYesmoke, today owes Philip Morris $173,734,291.62. The Number One online shop worldwide, with its 6 million shipments a year, allegedly made illicit earnings, from January 2000 to November 2004, selling to customers in the United States Marlboros manufactured for the European market and Marlboros made in the Philippines meant for the Far East.

Today Big Tobacco manufactures and distributes cigarettes all over the world that have significant and "secret" differences in their additives, and makers are not required to inform anyone about this. The additives are what primarily characterize cigarettes of different quality, though there are no differences in their prices based on these standards of quality.

Yesmoke does not intend to pay Philip Morris the sum requested, as the company has never been summoned by Swiss justice. The suit was entirely debated and concluded in American halls of justice. The payment of a similar sum would be impossible for Yesmoke; it would mean the closure of the Balerna company. Continue

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Top Story N. 16: Cigarettes for Sale

The parallel market is as active as ever

Yesmoke, today, is putting on sale on the parallel market all of its warehouse, consisting mainly of cigarettes produced by Philip Morris, BAT, B&W and R.J. Reynolds. There are fifty 40 ft. containers, two and a half million cartons, all purchased on the same market between November 2004 and February 2005.

American DollarsThe parallel market is legal. It was not born as a service for smugglers. Here the goods made for one country are sold in other countries with the regular payment of the customs duties. So what happens if someone tries to reroute some goods from the parallel market towards smuggling?

Today things are changing for Big Tobacco, after the sentence that condemned Philip Morris to pay 1,200 million Dollar to the European Community for smuggling, and after the relative agreement signed on July 9th 2004, Big Tobacco has become the controller responsible for the correct distribution of its own products. So it can no longer pretend to combat the parallel market; it must stop completely supplying cigarettes to this market.

Basically, Big Tobacco should come and pick up its cigarettes purchased by Yesmoke on the parallel market up to 8 months after the date of the agreement, cigarettes which can still be bought today, and it should give up the relative earnings and give back the money collected. And that’s not all: as it has not respected the agreement Big Tobacco now should pay more, one would suppose. Continue

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Top Story N. 15: Specialist in Transmitters

The Marlboro Man Investigates...

Big Tobacco, now that it is officially collaborating with the police of the European Union in the fight against smuggling, is using microscopic transmitters to follow the path of its cartons of cigarettes. The devices are so small that they can be put in a single pack without even being noticed by the smoker who buys it. A real - specialist in transmitters -

TransmitterThe devices used today by Big Tobacco are as thin as a sheet of paper, imperceptible and almost invisible. It is supposed that they enable the goods to be followed from the factory to any eventual smuggler.

And what if they don’t go to smugglers? Then they could, logically, enable the cigarettes to be followed all the way to some exotic beach, where the innocent and unawares smoker has gone on vacation, taking his inseparable Marlboros with him.

Why didn’t Philip Morris use these instruments in August 2003, when it had a series of fake bombs, contained in cartons of Marlboro and L&M cigarettes, sent to Yesmoke logistics in Balerna, Switzerland, creating panic among the company employees?

(Top Story N. 15: Specialista in trasmettitori)

The Marlboro Man indaga...

Big Tobacco, ora che collabora ufficialmente con la polizia dell'Unione Europea nella lotta contro il contrabbando, usa microscopici trasmettitori per seguire il percorso delle stecche di sigarette. Sono così piccoli che potrebbero stare in un singolo pacchetto senza alcun disturbo per il fumatore che l'ha acquistato. Un vero --specialista in trasmettitori--.

TrasmettitoreI congegni utilizzati oggi da Big Tobacco sono sottili come un foglio di carta, impercettibili e quasi invisibili. Si suppone che essi permettano di seguire il percorso della merce dalla fabbrica all'eventuale contrabbandiere.

E se non passano per le mani del contrabbandiere, dovrebbero, logicamente, permettere di seguire la merce forse anche fino ad una spiaggia esotica dove l'ignaro fumatore si è recato in vacanza, portandosi dietro le sue inseparabili Marlboro.

Perchè Philip Morris non usava questi strumenti nell'agosto 2003, quando fece pervenire alla logistica di Yesmoke, a Balerna, Switzerland, una serie di finte bombe contenute in stecche di sigarette Marlboro ed L&M, seminando il panico tra i dipendenti dell'azienda?

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Top Story N. 14: Bush signs act that restricts class action suits in state courts

New York - President George Bush has signed the controversial Class Action Fairness Act of 2005, which limits eligibility for filing class action suits in state courts, saying the act is a "critical step toward ending the lawsuit culture in our country."

President BushAt the signing ceremony, President Bush charged that "junk lawsuits" caused small businesses to "close their doors for good."

He said that such lawsuits forced up the total cost of the US tort system "to more than $240bn [Pound 125bn; Euro 180bn] a year" and that medical liability lawsuits were "driving up the cost for doctors and patients and entrepreneurs around the country."

But critics say the costs cited by President Bush are exaggerated and that the act will make it harder to hold corporations responsible for wrongdoing.

Joanne Doroshow, attorney and founder of the Center for Justice and Democracy, told the BMJ, "The $240bn figure [is] misleading... The cost of malpractice both claims and premiums is each less than 1% of total healthcare costs. Total payouts are about $6bn less than we pay for dog and cat food." Continue

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Top Story N. 13: 32.5 million packs of cigarettes

The European Community at the crucial test.

Philip Morris, according to the agreement of July 9th 2004, signed with the European Community, besides interrupting its smuggling activities also has to stop supplying the parallel market; this market is legal, but it can easily be transformed into an additional source of supply for smugglers. Logically, the Colossus must collect everything it has put onto this market, giving up part of its business. In short: it has to give back some money.

Marlboro Cigarette Packs"Philip Morris and R. J. Reynolds have had a determining role in the direction, management and control of the contraband operations within the European Community through company directives issued at top company levels" (Official E.U. Documents).

With this premise, Philip Morris cannot be credible when it affirms that it no longer supplies the parallel market as it has always done. In fact, what interest could Philip Morris have in obstructing this business if part of the goods ends up in the hands of smugglers? And how did it get into those hands? Following routes that Philip Morris does not reveal... otherwise what smuggler would it be?

Tobacco’s official distributors, active in all countries around the world, purchase from the manufacturers a quantity of cigarettes greater than the requirements and the demand of their countries’ markets. The surplus cigarettes the representatives then sell on the free market. Thus cigarettes officially destined to one country are sold legally in other countries. This is the parallel market, a market that exists for cigarettes as well as for automobiles, electronics, etc.

The agreement that requires Philip Morris to pay a fine, for all the smuggling carried on in the European Community, of 1,200 million dollar in ten years, in installments, speaks clearly: PM must not only stop its smuggling, but it must also make every effort to prevent its cigarettes from ending up in the hands of smugglers.

(Top Story N. 13: 32.5 milioni di pacchetti di sigarette)

La Comunità Europea alla prova del nove.

Philip Morris, in base all'accordo del 9 luglio 2004, firmato con la Comunità Europea, oltre ad interrompere le sue attività contrabbandiere, deve smettere di foraggiare il mercato parallelo, che è legale ma si sa trasformare in una addizionale fonte di approvvigionamento per i contrabbandieri. E logicamente deve raccogliere tutto quanto indebitamente immesso su questo mercato. Rinunciare ad una parte del suo business. In poche parole: restituire dei soldi.

Marlboro Cigarette Packs"Philip Morris e RJ Reynolds hanno avuto un ruolo determinante nella direzione, gestione e controllo delle operazioni di contrabbando all'interno della Comunità Europea ... mediante direttive societarie impartite dai massimi livelli dell'azienda."

Con questa premessa Philip Morris non può essere credibile quando dice di combattere il mercato parallelo, non presentando prove concrete a riprova. Infatti che interesse poteva avere Philip Morris a combatterlo, se parte della merce finiva regolarmente nelle mani dei contrabbandieri? E come finiva in quelle mani? Seguendo percorsi che Philip Morris non rivela ... se no che contrabbandiere sarebbe?

I distributori ufficiali, presenti in quasi tutti i paesi nel mondo, acquistano dal produttore una quantita' di sigarette superiore alla domanda del mercato del proprio paese. Il surplus viene venduto sul libero mercato, cosi' sigarette destinate ufficialmente ad un paese vengono vendute legalmente in altri paesi. Ecco il mercato parallelo, esistente per sigarette come automobili, elettronica etc.

L'accordo che impone a Philip Morris il pagamento di una multa, per tutto il contrabbando effettuato nella Comunità Europea, di 1200 milioni di euro in 10 anni a rate, parla chiaro: PM deve fare tutti gli sforzi per evitare che le sue sigarette possano finire in mano a contrabbandieri.

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