More good news for cigar smokers looking to protect the premium cigar industry from the pleasure-killing rampage that the FDA has been on for quite some time. TobaccoToday.info posted an article recently explaining that HR 1639 has reached 210 co-sponsors, giving it even more clout in the House of Representatives. That means the resolution needs just eight more supporters to reach a majority in the house.
Still, there are powerful forces against the bill, including both the anti-tobacco lobby AND the major cigarette companies.
I’m glad to see someone is doing their homework, because the American Cancer Society and over 40 anti-tobacco groups certainly aren’t. A letter signed by anti-smoking groups arguing against HR 1639 (exempting cigars from FDA oversight) stated,
“We are particularly concerned about the wide range of products that would likely be exempted from any regulation under the bill, including Swisher Sweets Sweet Chocolate Blunts, Phillies Sugarillos Cigarillos (described on the box as “when sweet isn’t enough!”), White Owl grape Blunts Xtra, and Optimo peach Blunts. These products come in flavors and are among the most popular with youth.”
From the text of the letter, and some commentary posted by other anti-tobacco leaders, this exemption is some sort of sneaky ploy by big tobacco to shift away from marketing cigarettes to children to marketing cigars to children. And if that was the case, it really would be a pretty terrible thing.
Our friends at the American Cancer Society didn’t do their homework. As a letter from the IPCPR points out, the text of HR 1639 states that the exemption is for cigars that are “wrapped in leaf tobacco, contains no filter, and weighs at least 6 pounds per 1,000 count…”
If you know anything about Swisher Sweets, you’d know that they are not wrapped in leaf tobacco – a detail that the ACS probably missed, presumably because they don’t know anything about the premium cigar products they are trying to destroy.
Many thanks to the writers of HR 1639, who provided a short, concise exemption that keeps cheap, sweetened cigars highly regulated while trying to save the premium cigar industry.
The conversation on regulating premium cigars continues, and it is getting a bit ugly. Anti-smoking groups are claiming that H.R. 1639, the bill that would exempt premium cigars from FDA oversight, also exempts tobacco products marketed to kids like Swisher Sweets and other flavored cigars. It might be good to have the full text of the two page bill on hand, which specifically points out that cigars exempted must be “wrapped in tobacco leaf” as opposed to the homogenized tobacco paper found in Swisher Sweets, etc.
To amend the Federal Food, Drug, and Cosmetic Act to clarify the Food and Drug Administration’s jurisdiction over certain tobacco products, and to protect jobs and small businesses involved in the sale, manufacturing and distribution of traditional and premium cigars.
IN THE HOUSE OF REPRESENTATIVES
April 15, 2011
Mr. POSEY (for himself, Ms. CASTOR of Florida, Mr. COLE, Mr. CALVERT, and Mrs. MILLER of Michigan) introduced the following bill; which was referred to the Committee on Energy and Commerce
A BILL
To amend the Federal Food, Drug, and Cosmetic Act to clarify the Food and Drug Administration’s jurisdiction over certain tobacco products, and to protect jobs and small businesses involved in the sale, manufacturing and distribution of traditional and premium cigars.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘Traditional Cigar Manufacturing and Small Business Jobs Preservation Act of 2011’.
SEC. 2. LIMITATION OF AUTHORITY WITH RESPECT TO PREMIUM CIGARS.
(a) Exception for Traditional Large and Premium Cigars- Section 901(c) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 387a(c)) is amended–
(1) in paragraph (2), in the heading, by inserting ‘FOR CERTAIN TOBACCO LEAF’ after ‘AUTHORITY’; and
(2) by adding at the end the following:
‘(3) LIMITATION OF AUTHORITY FOR CERTAIN CIGARS-
‘(A) IN GENERAL- The provisions of this chapter (except for section 907(d)(3)) shall not apply to traditional large and premium cigars.
‘(B) RULE OF CONSTRUCTION- Nothing in this chapter shall be construed to grant the Secretary authority to promulgate regulations on any matter that involves traditional large and premium cigars.
‘(C) TRADITIONAL LARGE AND PREMIUM CIGAR DEFINED- For purposes of this paragraph, the term ‘traditional large and premium cigar’–
‘(i) means any roll of tobacco that is wrapped in leaf tobacco, contains no filter, and weighs at least 6 pounds per 1,000 count; and
‘(ii) does not include a cigarette (as such term is defined by section 900(3)) or a little cigar (as such term is defined by section 900(11)).’.
(b) Conforming Amendments- Section 919(b) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 387s(b)) is amended–
(1) in paragraph (2)(B)(II), by inserting ‘, but excluding traditional large and premium cigars (as such term is defined under section 901(c)(3)’ before the period; and
(2) in paragraph (5) by inserting ‘subject to section 901(c)(3),’ before ‘if a user fee’.
If you think American cigar smokers have it bad–think again. House Bill 5727, a bill currently pending in the Senate of the Philippines, will impose a 12,000% increase in the tax imposed per cigar, from P1.25 per cigar to P150 per cigar. You heard it right. That’s like paying $150 for a house blend.
“A Slim Panetela has a net selling price of 12.50 per cigar in a box of 25 cigars for P312.50 per box. If we apply the tax as per Sec 145 (A), the selling price of a Slim Panetela will jump to P162.50 per piece and a box of 25’s will sell for P4,062.50. This is a 1,300-percent increase in selling price.”
He also notes that any taxes the government plans on correcting from the hike won’t come through, because these businesses won’t exist.
So why is the Philippine government undermining the age-old tradition of its own people? Simple, it is being lobbied by the European Chamber of Commerce of the Philippines to pass the bill “as soon as possible and without delay.”
As the cigar manufacturer points out, the tax will essentially clear out local businesses, in both alcohol and tobacco, and clear the way for European and other companies to enter the market without local competition.
In the past few weeks, FineTobaccoNYC has been continuing our “Cigar Wars” series, centered on the fight over regulation of the premium cigar industry. We’ve posted quite a few articles from the perspective of the industry, particularly small businesses.
Recently, though, I’ve been reading articles presenting the other side of the issue, and I want to share one that I think presents a pretty good argument for the other side. In “Why protect cigars that are aimed at children?”, Marshall C. Deason of the American Lung Association presents his case for FDA regulation of cigars. I’d encourage you to click on the link and take a read.
For those of you don’t click the link, the most potent argument he makes (in my opinion), is that, if cigars are exempted from FDA oversight, tobacco companies will change their business strategy to market and sell more flavored cigars to children. He notes that products like cigarillos and Swisher Sweets would be exempted as well under the proposed exemption rules. Deason writes,
“Products that could claim to be exempted include Swisher Sweets blunts and cigarillos, which are available in flavors such as chocolate, strawberry, grape and peach, and Phillies cigarillos, which come in flavors including watermelon, sour apple, mango, banana and coconut. Data from the National Survey on Drug Use and Health show that Phillies and Swisher Sweets are among the most popular cigar brands among youth age 12-17.”
I’d be curious to know if our readers find Deason’s arguments compelling. What do you think?
If you think American cigar smokers have it bad–think again. House Bill 5727, a bill currently pending in the Senate of the Philippines, will impose a 12,000% increase in the tax imposed per cigar, from P1.25 per cigar to P150 per cigar. You heard it right. That’s like paying $150 for a house blend.