TT-70 – PACT Act and delivery sales restrictions
What businesses must know about federal and state rules for shipping tobacco products
Federal law and Maryland law restrict the shipment of cigarettes and other tobacco products to consumers, and this guidance explains delivery sales prohibitions, registration requirements, and reporting obligations under the PACT Act.
What you need to know
- Delivery sales to Maryland consumers are prohibited
- Businesses must register before shipping tobacco products
- Monthly reporting is required for shipments
- Both federal and state laws apply
Who This Applies To
This guidance applies to:
- Out-of-state cigarette manufacturers
- Out-of-state wholesalers
- OTP manufacturers and wholesalers
What Is a Delivery Sale
A delivery sale occurs when:
- An order is placed remotely (internet, mail, or phone)
- The product is delivered by a carrier
- The seller is not physically present with the buyer
Maryland Law on Delivery Sales
Maryland law prohibits:
- Selling or shipping cigarettes to consumers by mail, internet, or other remote methods
Effective May 1, 2011:
- The same prohibition applies to other tobacco products
Consumers must:
- Purchase tobacco products from licensed, in-person retailers
PACT Act Requirements
The federal PACT Act requires businesses that ship tobacco products to:
- Register with the U.S. Attorney General
- Register with the State of Maryland
- Comply with federal reporting rules
Monthly Reporting Requirement
Businesses must:
- Submit a monthly report for all shipments into Maryland
Reports must include:
- Customer name and address
- Brand information
- Quantity shipped
Enforcement
Violations may result in:
- Civil penalties
- Criminal penalties
- Enforcement action by federal and state authorities
What This Means for Businesses
Businesses should:
- Stop all delivery sales to Maryland consumers
- Complete required federal and state registration
- Submit monthly shipment reports
- Maintain accurate transaction records
Important Notes
- Federal law does not override Maryland’s delivery sales ban
- Reporting is required even if sales are restricted
- Compliance applies to all interstate shipments
Need Help?
For questions about PACT Act requirements, contact the ATCC: 410-260-7314 ext. 4 or [email protected]