In Sala Cuarta (Constitutional Hall) yesterday, the magistrates lifted the order preventing the signing by the Executive Branch of file 17371, the future “Ley General de Control del Tabaco y sus Efectos Nocivos en la Salud” (the Tobacco Control Law). President Laura Chinchilla expressed her satisfaction with the decision by Constitutional Hall, which paves the way for signature, publishing and implementation of the new law in the next few weeks.

None of the points in opposition against the law filed in the original complaint signed by ten legislators were considered unconstitutional. Two of the magistrates, including the current chief judge, abstained from voting on the judicial resolution since they expressed that the complained should not have been admitted in the first place due to procedural matters. Furthermore, the magistrates observed that the anti-smoking restrictions are not far-reaching enough to be considered unconstitutional.

The Looming Black Market for Cigarettes

The magistrates at Constitutional Hall did not find that the taxation created by the law on cigarette sales or the prohibition to sale single cigarettes were significant enough to trigger the creation of a tobacco black market. Sales of single cigarettes are a staple of small businesses such as pulperias and street kiosks all over the country, and thus many micro business owners will be forced to adjust properly. Hushed private sales of single cigarettes are already being formulated by street-level entrepreneurs who plan to take advantage of the new restrictions.

In Germany, law enforcement efforts to curb cigarette smuggling have end up costing more than the revenues brought in by the sales. President Laura Chinchilla once mentioned that technology such as that found in RFID devices could be used to combat smuggling.

Future Challenges

A legislator from the Libertarian Movement explained to La Nacion that he considered the magistrates did not review the fines associated with the Tobacco Control Law close enough. This statement is a reminder of the countless challenges that have plagued the Transit Law and its undue fine amounts for traffic infractions. Challenges to the Transit Law for disproportionate fines have been an expensive administrative nightmare for the government.

Speaking to digital newspaper Costa Rica Hoy, a spokesman for Phillip Morris echoed the sentiments concerning the potential black market situation. He also mentioned that a team of corporate lawyers will be taking a closer look at the law once it is published and implemented to focus on certain challenges.