Tobacco Product Fees

On June 22^nd, 2009, President Barack Obama signed the Family Smoking Prevention and Tobacco Control Act (FSPTCA). This historic legislation grants authority to regulate tobacco products to the U.S. Food and Drug Administration (FDA).  FSPTCA amends the Federal Food, Drug and Cosmetic Act (the Act), adding to it a new chapter on tobacco products. The Act, as amended, authorizes FDA to collect user fees from manufacturers and importers of tobacco products to pay for new FDA tobacco regulation activities, specifies the total dollar amount to be collected each year, and directs how the fees will be assessed among classes of tobacco products, and among companies within each class.

FSPTCA will address public health concerns and marketing concerns about children targeted and addicted to drugs like nicotine. To do this, FSPTCA establishes a Center for Tobacco Products (the Center) at FDA. The Center will use the best available science to guide the development and implementation of effective public health strategies to reduce the burden of illness and death caused by tobacco products.

Funding for the Center and tobacco regulation support activities will come from user fees paid by manufacturers and importers of tobacco.  These fees will be allocated among classes of tobacco products (cigarettes, cigars, snuff, chewing tobacco, pipe tobacco, roll-your-own tobacco) and then based on their percentage share of each class.

The Family Smoking Prevention and Tobacco Control Act User Fee program will generate over $4.5 B in user fees over nine years (2009-2018).