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 ATF regulations at Subpart F of 27 CFR Part 296.

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 ATF regulations at Subpart F of 27 CFR Part 296 (http://www.atf.treas.gov/regulations/27cfr296.htm). 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 Subpart G of 27 CFR Part 296 (http://www.atf.treas.gov/regulations/27cfr296.htm).

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 270 (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 (http://www.atf.treas.gov/regulations/27cfr275.pdf). 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 suggest that you visit the following Federal web sites for information on tobacco use.

http://www.whitehouse.gov
http://www.dhhs.gov
http://www.ahcpr.gov/
http://www.samhsa.gov/index.aspx
http://www.healthfinder.gov/
http://www.health.org/
http://www.epa.gov/
http://www.ftc.gov/
http://www.nci.nih.gov/occdocs/occ.htm
http://www.amsa.org/hp/tobres.cfm/
http://www.nhlbi.nih.gov/
http://www.cdc.gov/niosh/homepage.html
http://www.nidcr.nih.gov/
http://www.ntis.gov/
http://www.osha.gov/
http://www.surgeongeneral.gov/ophs/
 
 

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  (http://www.atf.treas.gov/alcohol/info/revrule/rules/69-488.htm).