NYC, California sue Postal Service over smuggled cigarettes

California and New York City sued the U.S. Postal Service on Tuesday to stop tens of thousands of cigarette packages from being mailed from foreign countries to U.S. residents, saying the smugglers are engaging in tax evasion while postal workers look the other way. The lawsuit in Brooklyn federal court blames the Postal Service for deliveries from Vietnam, China, Israel and other countries, saying the failure to enforce a federal law aimed at banning cigarette mail deliveries costs California an average of $19 million annually in tax revenues and New York City and state over $21 million each year.

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