Upcoming FDA Regulation on Cigars in US

[jwr0201]

In the last 48 hours, I've been bombarded with emails and even postal mailings by the large cigar corps. to help in contacting my congressman to prvent the FDA from including premium cigars in the upcoming legislation and ensuing taxation. Apparently a decision may come shortly and huge taxes may be levied on premium cigars. This has been looming and some special interest groups have been fighting for a while to get this passed. Fortunately, there are some VERY large cigar interests in the US that have been the frontline defenders. Prices are high enough as it is. If prices were to double, purchases would certainly drop sharply and most b&m's would likely fold in short order. Our elected officials at work! And they call themselves 'Representatives'!

[Habana Mike]

If the most onerous regulations on the docket pass it will put many of the smaller producers out of business as well and could have a huge impact on when or if Cuban cigars could be sold in the US.....

[Shrody234]

It's unfortunate as it seems there are much larger problems in our country. I think we would all prefer their focus elsewhere. As long as enough pockets are lined by the right groups I think they will be safe, as that seems to be the ever lasting trend in "politics" (I'm still chapped about the Draft Kings/Fan Duel NY decision of today.)

[CdnLimitada]

I wonder if it is another tactic to lessen the enthusiasm towards lifting the embargo for some. Where can you follow this for breaking news on the subject?

[Anth87]

This is why Australia sucks - I had a friend from Vegas here recently when he went to buy smokes and was told $28 he almost died! Damn taxes!

[Habana Mike]

I wonder if it is another tactic to lessen the enthusiasm towards lifting the embargo for some. Where can you follow this for breaking news on the subject?

This has actually been going on for quite a bit longer than the rapprochement between the US and Cuba.

Two places you can follow are:

CRA: http://www.cigarrights.org/main.php

HR 662: https://washingtonwatch.com/bills/show/114_HR_662.html

[NSXCIGAR]

I'd actually read about this recently and it appeared to me based on what I'd read that there was some political recognition that premium cigars should clearly be exempt from the law. It appears that the premium cigar industry is doing it's best to fight this. The spirit of the law was not designed to include premium cigars and there shouldn't be a large amount of political fallout for recognizing that.

However, if efforts fail it would be just another reason for me to continue to patronize our host even after the embargo is lifted!

[srbbones]

This is actually more about draconian/crippling regulation more than taxes. I called Washington. Go to Halfwheel blog for me info

[ShortFatHokie]

This is actually more about draconian/crippling regulation more than taxes.

Just as the EPA has done to the coal industry...southern WV and southwest VA are dying because of it. Almost all of the coal mines are shutdown and several major coal companies have filed bankruptcy. Then there's the trickle down effect where other businesses end up closing because former customers are no longer there or able to afford services.

Really sad what is happening to our Country...

[Ribeye]

I understand they want to define a premium cigar as one that costs $10.00 or more each. Anything below gets a hefty tax. Most of these "representatives" couldn't run a water ice cart.

[PigFish]

Vote tobacco!

It is pretty clear who stands on the side of individual liberty when you look at a topic like this one.

Look at the Ozzy prices on our friends site here... Wake up folks... We keep putting socialist in office an this is exactly what we are going to get!

-Piggy

[Baldy]

In the last 48 hours, I've been bombarded with emails and even postal mailings by the large cigar corps. to help in contacting my congressman to prvent the FDA from including premium cigars in the upcoming legislation and ensuing taxation. Apparently a decision may come shortly and huge taxes may be levied on premium cigars. This has been looming and some special interest groups have been fighting for a while to get this passed. Fortunately, there are some VERY large cigar interests in the US that have been the frontline defenders. Prices are high enough as it is. If prices were to double, purchases would certainly drop sharply and most b&m's would likely fold in short order. Our elected officials at work! And they call themselves 'Representatives'!

Fight like hell man. If you think prices are high enough now, how about average $30+ for a Robusto size cigar like it is in Canada, Australia, GB, etc. Give them an inch and they'll take the whole country. Not only are we taxed to death here in Canada, we are also ban from smoking in any indoor or outdoor public establishment including parks and beaches in many municipalities. So enjoy your cigar lounges while you can as that will be the next thing our nanny government will legislate to protect us.

[ThatAlfonso]

Funny how the initial drafts of these tobacco bills in the US always include cigars before they hear enough (get paid enough) from the industry to amend them out. The bigger problem I have with changing regulation, especially poison pill stuff like this, is even the specter of it eventually passing keeps innovators and start-ups out of the industry for fear they are working in a dying market. It is so exciting to watch the creativity and products resulting from the booming microbrewery/distillery market in the US. The availability of Cuban tobacco, whether raw or finished good, could result in so many interesting offerings if left to the imagination and little government interference.

[Fosgate]

Friends of mine that married and moved here from Germany are just dumbfounded about all the rules, regs and taxes we have from the local level on up. I remember one asking, "I thought America was a free country?" "Me too hon, me too."

[NSXCIGAR]

...The bigger problem I have with changing regulation, especially poison pill stuff like this, is even the specter of it eventually passing keeps innovators and start-ups out of the industry for fear they are working in a dying market...

That's a very insidious aspect of this kind of regulation. The dynamic is usually the same: the large interests usually fight it at first. When they eventually lose, they discover that the regulations actually act as a barrier to entry and a shield from new competition, which they actually like. Their profits may decline at first but their long-term profits are essentially guaranteed. This results in no further efforts on the part of the established interests to fight for repeal. Large industry regulations always almost always have cartelizing effects.

[SCgarman]

If the FDA has their way they will put the cigar business out of business. Bottom line. Then they will go after our coffee, booze, charcoal and gas grills, steaks, you name it!! Once they get their foot in the door, you know......

[stunod]

Under the FDA’s proposed regulations, the most heavy-handed measure would require all premium cigars to meet pre-market FDA approval. According to Loope:

“To suggest that every cigar—size, shape, blend—has to be submitted to the federal government before it hits the market is one: ridiculous, and two: economically infeasible for the industry.”

The FDA’s economic analysts predicted that 3,639 types of premium cigars would be impacted by the proposal. These include 3,276 which are imported.

[Habana Mike]

Which number doesn't include Cuban cigars as they're not on market as yet and would most likely end up in line behind all the rest in the queue for approval.....

[PigFish]

... so lets call a spade a spade shall we? Government intervention is the reason for a black market. THANK GOD for the black market!!! Three cheers for the black market....

If you want to smoke, go to the black market!

F... government and their damn nanny state programs! -the Pig

[jackattack]

The Feds have been out of control for sometime now. What will it take for people to wake up? One things for sure, they are going to get their cut.....

I don't even recognize this country I grew up in anymore...Damn shame!

[Phinz]

I remember back in the day when the USA had to worry about aging infrastructure, medical care, gun control, education quality, elder care, debt, etc... thankfully we've got all those things sorted and can move on to concerns about tobacco.