After state and federal tax hikes, Arkansas tobacco agents say they've seen an increase in people smuggling cigarettes from outside state lines. Eight Arkansas Tobacco Control agents say they can't catch every person trying to buyer cheaper cigarettes outside the state. They say they can catch businesses trying to illegally beat out the competition.

Arkansas Tobacco Control Enforcement Agent Glenn Redding patrols 13 counties enforcing every tobacco law. "Tobacco is smuggled more than any other legal product," Redding says. Redding checks in with Missouri stores along stateliness to see if they are the new hot spot for smugglers.

Redding also conducts inspections on 533 businesses with tobacco permits. He makes sure they aren’t selling to minors and have proper permits. As he checks invoices and products at H & R Service Station in Omaha, AR, he asks the owner about business. "After the sales tax increases, we are selling 8 to 10 cartons less," Hazel Rose says. “It really hurts business because selling is what we are here for.”

Redding says the loss of revenue could be enough to turn a legitimate store owner into a smuggler. He checks cigarette packs and other tobacco products to make sure sellers aren't buying from thieves or cheaper states and then charging Arkansas tax prices. "Every pack is stamped at the wholesaler after the tax is paid," Redding says. "Our main concern is to make sure all the retailers are on a level playing field and everyone is paying the Arkansas tax."

Redding says the agency will only go after individuals if they're trying to make a profit. He says he has seen those smuggling cases increase along with cigarette prices. "We have made two arrests of private individuals who are buying cigarettes on the internet or from a cheaper state and they were selling them for less,” Redding says. The agent says those people are cheating retailers out of customers.

Redding says the last six untaxed tobacco felony charges filed involved businesses that were buying other tobacco products from Florida, Tennessee or an unlicensed dealer. He says cigarettes are often the least likely to be smuggled because they are stamped. He says snuff, cigars and other products are the most often smuggled and sold by businesses.

Even though the agents say they are not targeting individuals, they want smokers to know buying 9 cartons are more outside Arkansas state lines could lead to a felony charge.

According to members of the Arkansas Tobacco Control Board, the state is surrounded by lower cigarette excise tax rates. Here’s the tax rates as of April 2009:

Arkansas: $1.15
Missouri: $0.17
Oklahoma: $1.03
Louisiana: $0.36
Mississippi: $0.18

Here is a list of the six most recent possession of untaxed tobacco cases:

Nazim M. Ali & Gillani Amiruddin- C-Felony - Possession of Untaxed Tobacco
ET Relay Station
500 North College
El Dorado, AR 71730
(Product came from Florida)

Saleh Aljaad- C-Felony - Possession of Untaxed Tobacco, B-Misdemeanor - Purchasing from an Unlicensed Dealer
University Market
1715 East Johnson Ave.
Jonesboro, AR 72401
(Product came from Tennessee)


Jabar "Jimmy" Ali - C-Felony - Possession of Untaxed Tobacco
Dermott Superstop
302 East Speedway
Dermott, AR 71638

Shareef Quattom- C-Felony - Possession of Untaxed Tobacco, B-Misdemeanor - Purchasing from an Unlicensed Dealer
Alibaba
3400 South University
Little Rock, AR 72204
(Product came from online source)

Ziad El-Bairoti-C-Felony - Possession of Untaxed Tobacco, B-Misdemeanor - Purchasing from an Unlicensed Dealer
Avalon Mart
1323 South Avalon.
West Memphis, AR 72301
(Product came from Tennessee)


Mohsin Salma, Azia Jiwani & Ashish Sutar- C-Felony - Possession of Untaxed Tobacco, Misdemeanor - Purchasing from an Unlicensed Dealer
Parker BP
1203 W. Parker Road
Jonesboro, AR 72404
(Product came from Tennessee)