The Contraband Cigarette Trafficking Act is a constitutional exercise of congressional authority under the Commerce Clause

Seventh Circuit Criminal Case Summaries: Offenses - Contraband Cigarette Trafficking Act

United States v. Khan & Wamiq, Nos. 13-2681 & 13-2662. Khan and Wamiq were each convicted of several counts of knowingly shipping, transporting, receiving, possessing, selling, distributing, or purchasing contraband cigarettes in violation of 18 U.S.C. § 2342(a). They proceeded to trial and raised several issues regarding their convictions and sentences. The Court of Appeals affirmed. The Court rejected their argument that the “licensed distributor” exception applied to them because neither of them complied with the accounting and payment requirements under the Illinois Cigarette Tax Act in order to be considered licensed distributors. The Court also held the Contraband Cigarette Trafficking Act is not unconstitutional because it is a valid exercise of congressional authority under the commerce clause.