§ 105-113.31. Possession and transportation of non-tax-paid cigarettes; seizure and confiscation of vehicle or vessel. - North Carolina Statutes

§105‑113.31.  Possession and transportation of non‑tax‑paidcigarettes; seizure and confiscation of vehicle or vessel.

(a)        It shall beunlawful for any person to transport non‑tax‑paid cigarettes inviolation of this Part.  The Secretary may adopt rules allowing quantities ofnon‑tax‑paid cigarettes, not exceeding six hundred, to be broughtinto this State by a transient, a tourist, or a person returning to this Stateafter traveling outside this State, for their own use.  The possession ortransportation of these cigarettes is not subject to the penalties imposed bythis section.

(b)        (1)        Everyperson who transports non‑tax‑paid cigarettes on the publichighways, roads, streets, or waterways of this State must transport with thecigarettes invoices or delivery tickets for the cigarettes showing the truename and complete and exact address of the consignee or purchaser, the quantityand brands of the cigarettes transported, and the true name and complete andexact address of the person who has paid or who will pay the tax imposed bythis Part or the tax, if any, of the state or foreign country at the point ofultimate destination.

(2)        A common carrierthat has issued a bill of lading for a shipment of cigarettes and is withoutnotice to itself or to any of its agents or employees that the cigarettes arenon‑tax‑paid in violation of this Part is considered to havecomplied with this Part and the vehicle or vessel in which the cigarettes arebeing transported is not subject to confiscation under this section.  In theabsence of the required invoices, delivery tickets, or bills of lading, thecigarettes so transported, the vehicle or vessel in which the cigarettes arebeing transported, and any paraphernalia or devices used in connection with thenon‑tax‑paid cigarettes are declared to be contraband goods and maybe seized by any officer of the law, who shall take possession of the vehicleor vessel and cigarettes and shall arrest any person in charge of the vehicleor vessel and cigarettes.

(3)        The officer shall atonce proceed against the person arrested, under the provisions of this Part, inany court having competent jurisdiction; but the vehicle or vessel shall bereturned to the owner upon execution by the owner of a good and valid bond,with sufficient sureties, in a sum double the value of the property, which bondshall be approved by the officer and shall be conditioned to return theproperty to the custody of the officer on the day of trial to abide thejudgment of the court.  All non‑tax‑paid cigarettes seized underthis section shall be held and shall, upon the acquittal of the person socharged, be returned to the established owner.

(4)        Unless the claimantcan show that the non‑tax‑paid cigarettes seized were nottransported in violation of this Part and that the property seized belongs tothe claimant or that in the case of property other than cigarettes, theproperty was used in transporting non‑tax‑paid cigarettes inviolation of this Part without the claimant's knowledge or consent, with theright on the part of the claimant to have a jury pass upon this claim, thecourt shall order a sale by public auction of the property seized, and theofficer making the sale, after deducting the cost of the tax due, which theofficer shall pay upon sale, expenses of keeping the property, the fee for theseizure, and the costs of the sale, shall pay all liens according to theirpriorities, which are established, by intervention or otherwise, at the hearingor in another proceeding brought for the purpose as being bona fide and ashaving been created without the lien or having any notice that the vehicle orvessel was being used for the unlawful transportation of non‑tax‑paidcigarettes, and shall pay the balance of the proceeds to the State Treasurerfor the General Fund.

(5)        All liens againstproperty sold under the provisions of this section shall be transferred fromthe property to the proceeds of the sale of the property.  If, however, no oneis found claiming the cigarettes, or the vehicle or vessel, then the taking ofthe cigarettes, vehicle, or vessel, along with a description, shall beadvertised in a newspaper having circulation in the county where the items weretaken, once a week for two weeks and by notices posted in three public placesnear the place of seizure, and if no claimant appears within ten days after thelast publication of the advertisement, the property shall be sold, and theproceeds, after deducting the expenses and costs, shall be paid to the StateTreasurer for the General Fund.

(6)        This section doesnot authorize an officer to search any vehicle or vessel or baggage of anyperson without a search warrant duly issued, except where the officer hasknowledge that there are non‑tax‑paid cigarettes in the vehicle orvessel. (1969, c. 1075, s. 2; 1973, c. 476, s. 193; 1993, c.442, s. 12.)