XT 2003-01 - Tax Division Information Release - Notice About
Master Cigarette Settlement Agreement (MSA) - January 6, 2003
Default Judgments Issued
The Franklin County (Ohio) Court of Common Pleas, at the
request of the Ohio Attorney General, granted default
judgments against Sable Waghire & Co., Ltd. (Sable
Waghire), Southern Tobacco (Southern), and Sterling Tobacco
International, Inc. (Sterling). The judgments prohibit Sable
Waghire, Southern, and Sterling from selling cigarettes to
consumers within Ohio, whether directly or through a
distributor, retailer, or similar intermediary or
intermediaries. The judgment against Sable Waghire includes,
but is not limited to, the Shivsagar and Irie brands and is
effective immediately and lasts until November 13, 2004. The
judgment against Southern includes, but is not limited to,
the Golden and Dynamic brands and is effective immediately
and lasts until November 27, 2004. The judgment against
Sterling includes, but is not limited to, the Camron brand
and is effective immediately and lasts until December 12,
2004.
The default judgments prohibit the sale, but not the
possession, of brands manufactured or distributed by the
above companies. Wholesalers, if necessary, may apply for a
refund of the Ohio cigarette tax if the stamped packages are
returned to the manufacturer in accordance with Ohio
Administrative Rule 5703-15-15 or sold out-of-state after the
Ohio stamps are removed from the package.
Complaints
The Ohio Attorney General's Office filed complaints with the
Franklin County Court of Common Pleas against several
companies for failure to make payments to a qualified escrow
account. The complaints seek preliminary and permanent
injunctive relief ordering those companies not to sell
cigarettes to con-sumers in Ohio either directly or through a
distributor.
The companies are as follows:
- Bulgartabac Holding Group
- G.A. Keranis, S.A.
- G.B. Tobacco International, LTD.
- GTC Industries, LTD.
- Sarda Group
- d.b.a. Sinnar Bidi Udyog, LTD. and/or Kisanlal
Bastiram Sarda
- Third Millennium Cigars and Associates, Inc.
- a.k.a. Third Millennium Tobacco Corp.
Any injunctions issued against these companies may prohibit
the sale, but not the possession, of their products in the
state of Ohio. Wholesalers, if necessary, may apply for a
refund of the Ohio cigarette tax if the stamped packages are
returned to the manufacturer in accordance with Ohio
Administrative Rule 5703-15-15 or sold out-of-state after the
Ohio stamps are removed from the package. We will notify you
if any injunctions are issued.
New Signatory
Liberty Brands is a new signatory to the Master Cigarette
Settlement Agreement. The covered brands are All Star, Always
Save, Best Choice, Blue Star, Cabo Gold, Cajun Gold, Knights,
Leawood, Lib-erty, Roscoe, and Zone. These brands should no
longer be reported on your Master Settlement Agree-ment
Report (Form ET-60). This change is effective immediately and
is retroactive to July 1, 2000.
Alternative Notification
In our information release dated October 18, 2002, (XT 2002-07) you
were told that the Department of Taxation has the ability to
send information such as this and other tobacco tax
information electronically. We experienced technical problems
that have now been resolved. If you want to receive
information electronically instead of a paper copy, simply
send an e-mail to Tobacco_Taxes@tax.state.oh.us.
In the comment area, enter your company name and the e-mail
address or addresses to which you want future notifications
sent. Please note that our electronic address has changed.
If you have any questions or problems, please contact the
Fuel Use and Excise Tax Unit at (614) 466-3410.