In August, North Carolina-based cigarette importer, King Maker Marketing Inc., challenged a decision by U.S. Customs and Border Protection (Customs) that rejected its claims for more than $11 million in drawback duties as untimely.Continue Reading $11M Cigarette Drawback Dispute Could Have Significant Consequences for FTZ Importers
Michael Jordan
Michael Jordan is an associate in Troutman Pepper's Richmond office. Michael draws on a diverse range of experiences in government and private practice to help clients navigate complex regulatory issues. He focuses primarily on heavily regulated industries, such as tobacco and cannabis.
FDA to Enforce Cigarette Graphic Warning Rule in December 2025, Pending Litigation May Interfere
In September, the U.S. Food and Drug Administration (FDA) announced that it would begin enforcing the agency’s cigarette graphic warning rule in December 2025, in an enforcement policy outlined in a short guidance document. Although a federal district court previously found the rule unconstitutional, an appeals court reversed that decision, and the final rule is now in effect. According to the guidance, FDA will not begin enforcement until December 2025 at the earliest, but we believe it likely that the rule might yet again be postponed or vacated, as it remains the subject of ongoing litigation.Continue Reading FDA to Enforce Cigarette Graphic Warning Rule in December 2025, Pending Litigation May Interfere
New Jersey Issues Notice of Violations and Fines to Retailers Allegedly in Violation of the State’s Flavor Ban
On August 27, the New Jersey Attorney General (AG) and the Division of Consumer Affairs announced that the state had issued notices of violation and $4,500 civil penalty demands to 19 retailers across New Jersey for allegedly selling banned flavored vapor products. This is New Jersey’s first public enforcement of the state’s 2020 flavor ban, and New Jersey joins a number of other state AGs taking similar action across the U.S.Continue Reading New Jersey Issues Notice of Violations and Fines to Retailers Allegedly in Violation of the State’s Flavor Ban
ATF Rift With California Tribe Could Expand State Authority Over Tribal Tobacco Sales
In June, the Bureau of Alcohol, Tobacco and Firearms (ATF) argued in federal court that the federal Prevent All Cigarette Trafficking (PACT) Act requires tribal retailers to obtain state licenses to sell cigarettes on their own reservations. If accepted, ATF’s position would greatly expand the scope of state authority over tribal tobacco sales.Continue Reading ATF Rift With California Tribe Could Expand State Authority Over Tribal Tobacco Sales
PACT Act Basics: Five Things You Should Do if ATF Comes Knocking
“Hi, we’re with the Bureau of Alcohol, Tobacco and Firearms, and we’d like to take a look at your tobacco product sales invoices, shipping records, and PACT Act reports.”Continue Reading PACT Act Basics: Five Things You Should Do if ATF Comes Knocking
What’s at Stake for the Premium Cigar Industry as DC Circuit Considers FDA Appeal?
In August 2023, Judge Amit P. Mehta of the U.S. District Court for the District of Columbia partially vacated a Food and Drug Administration (FDA) rule that had “deemed” premium cigars subject to the Federal Food, Drug, and Cosmetic Act (FDCA), known as the “Deeming Rule.” This decision exempted premium cigars from FDA’s tobacco product authorities. In September 2023, however, FDA appealed, and the U.S. Circuit Court of Appeals for the D.C. Circuit is currently weighing the matter. So, what would it take for FDA to succeed on appeal, and what is at stake for the premium cigar industry?Continue Reading What’s at Stake for the Premium Cigar Industry as DC Circuit Considers FDA Appeal?
PACT Act Basics: Five Things Tobacco Sellers and Shippers Should Know
The Prevent All Cigarette Trafficking (PACT) Act, 15 U.S.C. § 375 et seq., is a federal law with two primary objectives: (1) to prevent federal and state tax evasion on tobacco products, and (2) to prevent sales of tobacco products to minors. Government agencies, increasingly concerned about cheap, untaxed products getting into the hands of underage consumers, are using the PACT Act’s enforcement tools to crack down on noncompliant companies.
If you are involved in the online sale and/or shipping of tobacco products, here are five things you need to know about the PACT Act.Continue Reading PACT Act Basics: Five Things Tobacco Sellers and Shippers Should Know
Massachusetts Court Rejects State AG’s Effort to Vacate Order in Settled Liquor Law Dispute
On January 26, a Massachusetts Superior Court rejected an effort by the Massachusetts Attorney General (AG) to vacate an order that cast doubt on the constitutionality of a new Massachusetts liquor law.Continue Reading Massachusetts Court Rejects State AG’s Effort to Vacate Order in Settled Liquor Law Dispute
US Supreme Court Declines to Hear Challenge to California’s Flavor Ban
Over the past decade, at least five states and hundreds of localities have passed, or attempted to pass, laws banning flavored tobacco products. To date, litigants have brought many challenges to these laws, often arguing that such bans are preempted under the federal Family Smoking Prevention and Tobacco Control Act (TCA). This argument, however, has largely proven unsuccessful — a trend that continued in January when the U.S. Supreme Court declined to hear R.J. Reynolds Tobacco Company’s challenge to California’s ban on the sale of flavored tobacco products.Continue Reading US Supreme Court Declines to Hear Challenge to California’s Flavor Ban
FDA Maintains Heightened Enforcement Against Sellers of Illegal E-Cigarettes
In December, the U.S. Food and Drug Administration (FDA) issued warning letters to online retailers for reportedly selling unauthorized e-cigarette products. Consistent with the Center for Tobacco Products’ (CTP) recent focus, the letters target unauthorized products, which FDA states are particularly appealing to youth — including Lost Mary, Funky Republic/Funky Lands, and Elf Bar/EB Design. These warning letters follow FDA’s recent issuance of civil money penalty complaints against 25 brick-and-mortar retailers for failing to comply with prior warning letters. Those civil money penalty complaints, which we previously discussed here, continued the agency’s approach of seeking the maximum penalty approved by law.
Continue Reading FDA Maintains Heightened Enforcement Against Sellers of Illegal E-Cigarettes