Amendment of Regulations Relating to Tobacco Product Importation Restrictions, Markings, Repackaging, and Destruction of Forfeited Tobacco Products

Washington, DC - The Bureau of Alcohol, Tobacco and Firearms (ATF) announces that it is amending certain regulations governing tobacco products in order to implement several provisions of the Imported Cigarette Compliance Act of 2000, included as part of the Tariff Suspension and Trade Act of 2000. The regulations are effective October 28, 2001.

The new law requires that tobacco products and cigarette papers and tubes manufactured in the United States and labeled or shipped for exportation can only be re-imported by the original manufacturer or by an export warehouse authorized to do so by the original manufacturer (except for a personal use exemption). Those articles labeled for exportation may not be sold or held for sale for domestic consumption unless they are removed from their export packaging and repackaged -- again, by the original manufacturer -- into new packaging that does not bear an export label. The new regulations also require the destruction of tobacco products forfeited under Section 5761(c) of the Internal Revenue Code of 1986.

The final rule also amends regulations involving tobacco products in order to implement Section 315 of the Consolidated Appropriations Act, 2001. Travelers entering the United States may now claim and be granted a limited personal use exemption that allows them to bring U. S. manufactured tobacco products labeled for export back into the United States. This exemption covers a quantity up to the quantity allowed free of tax and duty under Chapter 98 of the Harmonized Tariff Schedule of the United States. In addition, a traveler claiming such a personal use exemption may voluntarily relinquish to the U.S. Customs Service any tobacco products in excess of this quantity without incurring a penalty.

Click here to read the complete text of the final rule (T.D. ATF-465) or visit the ATF web site at: www.atf.treas.gov.