Yesmoke Tobacco S.p.A.

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.

Yesmoke, 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. Read more »

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.

The 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? Read more »

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.

Yesmoke, from the stipulation of the Agreement between Philip Morris and the European Community on July 9th, up to that fateful day of November 16th 2004, when its cigarettes sent by the Yesmoke shop in the USA were seized, found 32.5 million packs of Marlboros on the market. How did Yesmoke find these? Anyone could have found them.

Of these 32.5 million, 12.5 million are materially present in Yesmoke's warehouses, and 19.6 million were sold online between July 9th and November 16th 2004; this can be confirmed by the evidence provided by Philip Morris itself.

Read more »