Revised:
11/25/02
General Tobacco
T1: What Federal laws does the Bureau of Alcohol, Tobacco and Firearms
(ATF) enforce concerning tobacco products?
In general, ATF enforces the Chapter 52 of the Internal Revenue Code
(Title 26 of the United States Code) and Chapter 114 of Title 18 of the United
States Code. Chapter 52 of the Internal Revenue Code deals
mainly with (1) the Federal excise taxes on tobacco products
and cigarette papers and tubes and (2) other requirements, such as permits
required for engaging in business related to the manufacture, importation
and other operations involving such products. Chapter
114 of Title 18 of the United States Code deals with trafficking in
contraband cigarettes. With certain exceptions, contraband cigarettes
means a quantity in excess of 60,000 cigarettes that bear no evidence
of the payment of State cigarette taxes in the State where such cigarettes
are found. In addition, the State must require
a stamp, impression, or other indication to be placed on packages or
other containers of cigarettes to evidence payment of cigarette taxes.
For the exceptions, refer to part 46 of Title 27 of
the Code of Federal Regulations (CFR) available on line.
T2: What are the Federal and State excise taxes imposed on tobacco?
FEDERAL EXCISE
TAX
Please note that this does not include Custom duties that may be imposed.
STATE EXCISE TAX
We cannot guarantee that this information is accurate or has been updated.
Check with the appropriate State agency to make sure that you are calculating
taxes correctly.
T3: Who can I contact about a person selling cigarettes
or other
tobacco products that
were intended to be given free to customers (for example, buy one pack
and get one free)?
You can contact the manufacturer listed on the package of cigarettes
or other tobacco products. The manufacturer may be
interested in knowing that their "free" promotional or complimentary
cigarettes are being sold. Also, you may also contact your state tax agency about whether sale
of "free" cigarettes or other tobacco products
is legal. The Bureau of Alcohol, Tobacco and Firearms (ATF) does not
regulate how "free" (promotional or complimentary) cigarettes
or other tobacco products are sold. ATF regulates the taxation of cigarettes and tobacco products.
Federal excise tax is normally collected when a manufacturer removes
cigarettes or other tobacco products
from a factory or when an importer removes such products from customs
custody.
T4: Who can I contact about a person in the United States selling
cigarettes or other
tobacco products that are marked "Tax-exempt.
For use outside U.S." or with a similar notice?
Report domestic sales of cigarettes or other tobacco
products that have been
manufactured in the United States and have export markings
to the Bureau of Alcohol, Tobacco and Firearms by
e-mail, telephone or writing
to the Chief, Alcohol and Tobacco Programs Division, ATF, 650 Massachusetts
Ave., NW, Washington, DC 20226.
Also, refer to ATF Industry
Circular 2000-4.
T5: What must I do if I want to start a business that sells, manufactures
or imports tobacco?
You do not need a Federal license to
sell tobacco products. There
are Federal recordkeeping requirements if you sell more than 60,000
cigarettes in a single transaction. Refer to part 46 of Title 27 of
the Code of Federal Regulations (CFR) available on line. You should be aware of other requirements
that may impact your sales of tobacco products. Please read ATF Industry Circulars
99-2 and 2000-4 and
part 46 of
Title 27 of the Code of Federal Regulations.
If you intend to manufacture in the United States tobacco
products, or cigarette papers or tubes, then you will have to apply
and receive ATF approval before you engage in business. These requirements
are stated in ATF regulations at 27 CFR part 40
(http://www.atf.treas.gov/regulations/27cfr270.htm). If you need
information about applying, you may contact the National Revenue Center,
550 Main St., Cincinnati, OH 45203-3263, by phone 1-800-398-2282 or
by e-mail. Also,
you need to contact the State government agencies where
you will be making or selling tobacco products to find out their requirements.
If you intend to engage in the business of importing tobacco
products, you will have to apply and receive ATF approval before you engage in business.
This requirement is stated in 27 CFR part 275. If
you need assistance to apply for a Federal permit, you may contact the
National Revenue Center, 550 Main St., Cincinnati, OH 45203-3263, by
phone 1-800-398-2282 or by e-mail.
Other ATF forms may be required and may be available from ATF's web site. Also, you
need to find out about customs duties and requirements from U.S.
Customs Service (http://www.customs.treas.gov/).
Also, you need to contact the State government agencies where
you will be selling tobacco products to find out
their requirements. However, in general, you cannot import previously
exported cigarettes, other tobacco products, cigarette
papers or tubes. Refer to ATF Industry
Circular 2000-4 for further information.
Also, refer to ATF Industry Circular
99-2 about cigarette sales.
T6: What must I do if I want to import tobacco for personal
use?
The Bureau of Alcohol, Tobacco and Firearms does not regulate tobacco
products or cigarette papers or tubes that are imported by a person
for their personal use. If you are importing tobacco
products or cigarette papers or tubes for personal use, then you
need to contact U.S.
Customs Service (http://www.customs.treas.gov/) and your appropriate State government agency regulating such
articles.
T7: Does the Bureau of Alcohol, Tobacco and Firearms (ATF) require
anything to sell tobacco products on the Internet?
ATF has no special rules for sales conducted on the Internet. You are
still subject to the same requirements for selling
tobacco products or cigarette papers and tubes.
State or local law may restrict tobacco products or cigarette papers and tubes sold by e-mail or
delivered by U.S. mail or other carrier. However, you need to contact
the appropriate State government agencies where
you and your purchaser are located. Find out if you need licenses or
permits, need to pay tax or must comply with other requirements.
T8: Does the Bureau of Alcohol, Tobacco and Firearms (ATF) conduct
studies or collect information about
the effects of using tobacco?
In general, ATF regulates tobacco products to collect
Federal excise taxes. ATF does not provide information about the effects
of using tobacco. We have provided a list of some Federal web
sites containing information about the effects of tobacco use.
http://www.dhhs.gov
http://www.ahcpr.gov/
http://www.samhsa.gov/csap/index.htm
http://www.health.org/
http://www.epa.gov/
http://www.ftc.gov/
http://www.nhlbi.nih.gov/
http://www.cdc.gov/niosh/homepage.html
http://www.nidcr.nih.gov/l
http://www.ntis.gov/
http://www.osha.gov/
T9: How does ATF inform people of proposed and final changes to
the regulations?
Like all Federal agencies, ATF publishes official notices of its actions
in the Federal Register, a publication
of the Government Printing Office. The Federal Register is published daily,
both on paper and online.
When you access the Federal Register online, you can search by subject
or use their "Browse Feature," to view the Table of Contents
of any recent issue. Using either of these means, you can view a document
as either a text file or as a PDF file, using Adobe Acrobat. In addition,
we place a copy of these documents on the ATF web site shortly after
the Federal Register makes the documents available through their web
site. When you access a notice of proposed rulemaking on our website,
you will have an opportunity to e-mail a comment to us.
As part of publishing a document, the Federal Register places a copy
of the manuscript "on file" in their offices the day before
it is printed. Members of the public may view the document at that time.
Call the Federal Register for details. Their number is (202) 523-5240.
T10: Can a business get back the tax money from alcohol or tobacco
if the product is destroyed in a disaster such as a fire, earthquake,
flood, or tornado?
Under certain circumstances the tax money may be refunded for alcohol
and tobacco products. See ATF Information sheet I 1200.68 (8-2000).
T11: What are tobacco products?
Federal
law (section 5702(c) of Title 26 of the United States Code) defines
tobacco products as cigars, cigarettes, smokeless tobacco, pipe tobacco
and roll-your-own tobacco. Smokeless tobacco means any snuff or chewing
tobacco.
T12: Does the Bureau of Alcohol, Tobacco and Firearms (ATF)
regulate the advertising of tobacco products
or cigarette papers and tubes?
The only law that ATF enforces that relates to advertising of tobacco
products and cigarette papers and tubes is a prohibition against
lottery features and indecent, immoral picture, print or representation attached to such packages. Refer to section
5723(c) of Title 26 of the United States Code. For advertising
in general for such products, the Federal Trade Commission may be
helpful. The Federal Trade Commission enforces a variety of federal
antitrust and consumer protection laws.
T13: Does the Bureau of Alcohol, Tobacco and Firearms enforce the
Surgeon General's warning on certain tobacco products?
No. The Federal Trade
Commission enforces this warning.
T14: How does the Bureau of Alcohol, Tobacco and Firearms (ATF)
classify a tobacco product commonly referred to as "bidi", "beedi" and
"biri."
ATF has conducted several examinations of samples of these products
in the past. All of the examinations concluded the products contained
tobacco and for Federal excise tax purposes were cigarettes.
See Revenue
Ruling 69-488.
T15: If I grow tobacco, do I need a license or permit from the Bureau
of Alcohol, Tobacco and Firearms (ATF)? ATF does not license, or
require a permit for, growing tobacco. In addition, ATF does not regulate
the sale of tobaccos that are not tobacco products.
The U.S. Department of Agriculture may regulate the growing and sale
of such tobacco. You may contact this department at their web site at
www.usda.gov.
You may also contact your local Farm Service Agency of the
U.S. Department of Agriculture.
T16: Is the sale of a single cigarette, loose cigarettes or other
tobacco products legal?
Under Federal law and regulations, dealers must sell cigarettes or
other tobacco products from packages in which the
manufacturer or importer originally placed them. Manufacturers and importers
must place certain notices and marks on packages as required by 27 CFR parts 40 and 275.
Dealers must not remove the cigarettes or other tobacco
products from their original package until the customer removes
them, or until the dealer removes them in the presence of the customer.
For example, dealers are prohibited from selling loose cigarettes that
have been removed from their packages and placed in a jar for sale.
Dealers should also check with their State agency for additional restrictions.
T17: Can I import cigars made in Cuba into the United States?
Under most circumstances, you cannot import cigars made in Cuba into
the United States. The Office of Foreign Assets Control of the United
States Treasury Department enforces sanctions against certain foreign
countries, including Cuba. You may visit their web site at http://www.treas.gov./ofac/.
T18: Does the Bureau of Alcohol, Tobacco and Firearms (ATF) regulate
the age of individuals who can purchase, use, possess, sell, or otherwise
deal in, tobacco
products?
ATF does not administer or enforce any laws regulating the age of individuals
who can purchase, use, possess, sell, or otherwise deal in, tobacco products.
Each State government usually enforces any such laws or regulations.
You may contact your State government to determine
such laws and regulations and the agency that enforces them.
T19: Can the Bureau of Alcohol, Tobacco and Firearms (ATF) supply
me with the names, addresses and other information about manufacturers,
importers, wholesalers or retailers of tobacco
products?
ATF is restricted from supplying you with such information. You must
comply with the provisions of the law (section 6103 of Title 26 of the United
States Code). In general, ATF cannot give you this information unless:
a. The manufacturer, importer, wholesaler or retailer of tobacco products,
designates you to receive information that ATF may have; or
b. You qualify as a representative of a Federal or State government.
T20: Are cigarettes marked "not for sale" or "complimentary"
subject to the new Floor Stocks Tax in 2002?
If cigarettes are sold "complimentary/not for sale" as a
promotion such as "buy two, get one free," all three packs
of cigarettes are subject to floor stocks tax and must be included in
the book or record inventory.
If cigarettes are given away as "complimentary/not for sale"
for a promotion and not sold, these cigarettes are not subject to tax
and do not have to be included in the book or record inventory
T21: May I purchase, for my personal consumption or use, tobacco
products or cigarette papers or tubes on which Federal excise tax
has not been paid?
You may purchase, for your personal consumption or use, tobacco
products or cigarette papers or tubes on which the Federal excise
tax has not been paid if:
- You are departing from the United States and purchase tobacco
products or cigarette papers or tubes from a duty-free shop (class
9 customs bonded warehouse) or an export warehouse proprietor qualified
by the Bureau of Alcohol, Tobacco and Firearms (ATF); OR
- You are entering the United States with accompanying tobacco
products or cigarette papers or tubes purchased outside the United
States under the conditions and the quantities specified under the
Harmonized Tariff Schedule of the United States. For example, a United
States resident who has traveled abroad generally may return with
not more than 200 cigarettes, and not more than 100 cigars. For actual
quantities that apply to your situation upon returning to the United
States, read http://www.customs.treas.gov/travel/travel.htm
or ask for "Know Before You Go" brochure from the U.S. Customs
Service. The limits apply even if you receive tobacco
products or cigarette papers or tubes as a gift.
Otherwise, Federal law provides both criminal and civil penalties regarding
sales of tobacco products or cigarette
papers or tubes, for personal consumption or use, on which Federal excise
tax has not been paid.