N.Y. Comp. Codes R. & Regs. tit. 20, § 78.6 – Individuals and entities not subject to civil penalties or interest on under payments.

(a) Nothing in this Part shall apply to common or contract carriers or warehousemen while engaged in lawfully transporting or storing unstamped packages of cigarettes as merchandise, nor to any employee of such carriers or warehousemen who is acting within the scope of lawful employment. For purposes of this subdivision:
1. (1) Common carrier shall mean any person who, in the regular course of business, transports cigarettes for the general public for compensation.
2. (2) Contract carrier shall mean any person who, in the regular course of business, transports cigarettes for compensation under special and individual continuing contracts or arrangements with one or a limited number of persons for an extended period of time, or who, in the regular course of business, provides services that are not normally provided by common carriers.
3. (3) Warehousemen shall mean any persons who, in the regular course of business, store cigarettes for hire.
(b) Further, this Part does not apply to public officers or employees when the performance of their official duties requires them to possess or control unstamped or unlawfully stamped packages of cigarettes, nor to persons whose possession is for the purpose of aiding police officers in the performance of the officers' duties. In the preceding sentence the term police officers includes those employees of the Department of Taxation and Finance designated according to paragraph (1) of subdivision 34 of section 1.20 of the Criminal Procedure Law (as added by section 2 of chapter 877 of the Laws of 1974).
(c) Neither shall this Part apply to temporary incidental possession by employees or agents of persons who are lawfully entitled to possession of unstamped or unlawfully stamped packages of cigarettes. In the preceding sentence temporary incidental possession includes, but is not limited to, possession by an employee of any person licensed by the Department of Taxation and Finance to purchase and affix stamps on packages of cigarettes when such person is lawfully in possession of or controlling unstamped or unlawfully stamped packages of cigarettes.

Tax Law, § 481(2)(b)