This just in from the J.C. Newman newsletter -- don't know yet how pipe tobacco might be affected.
U.S. House of Representatives Votes to Provide Relief for Premium Cigars
Bill would exempt premium cigars from substantial equivalency
Today, the U.S. House of Representatives passed H.R. 2339, the Reversing the Youth Tobacco Epidemic Act. In addition to addressing youth use of tobacco products, the bill exempts premium cigars both from premarket review and from a new ban on online sales of tobacco products.
“Although it is not perfect, this is a historic bill and a huge step forward for the premium cigar industry,” said Drew Newman, general counsel of J.C. Newman Cigar Co., America’s oldest family-owned premium cigar company. “For the first time, the U.S. House of Representatives has recognized that premium cigars are unique, are not used by children, and should be exempt from unnecessary regulation.”
Section 108 of the bill would exempt premium cigars from the onerous and expensive premarket review process that would require J.C. Newman to demonstrate that natural, handcrafted premium cigars rolled today are “substantially equivalent” to ones rolled 13 years ago. Section 104 would exempt premium cigars from a new ban on mail order sales of tobacco products.
“The passage of H.R. 2339 is a clear signal to the U.S. Senate, White House, and FDA that premium cigars are different and should not be treated the same as cigarettes or vapes,” said Newman. “We are very grateful for the leadership of Congresswomen Kathy Castor and Donna Shalala for their outstanding efforts in working to save Florida’s historic premium cigar industry by including relief in this bill.”
Today’s vote follows
FDA’s declaration last month that premium cigars are its “lowest priority . . . given what FDA understands to be their comparatively lower youth usage rates.”
Despite the helpful provisions above, the bill is not perfect and should be improved. Specifically, the bill’s definition of premium cigar includes a minimum retail price of $12 per cigar. FDA data show that fewer than 25% of all premium cigars sold would meet this threshold. Because state cigar taxes vary widely and manufacturers do not control retail prices, a minimum retail price of any amount does not make sense and is likely unenforceable. Similarly, the bill would subject premium cigars to the existing restrictions on cigarette advertising and marketing. This would make it illegal to have branded ashtrays, lighters, or shirts; gifts with purchase; or sponsored events such as cigar festivals.
“The bill’s minimum price and advertising and marketing restrictions would severely harm the premium cigar industry,” said Newman. “It is important to remember that this bill is not final. Today’s vote in the House is a step forward. As the bill moves to the Senate, we look forward to working to improve this legislation and remove those and other restrictions for premium cigars.”