Here is a copy of a recent correspondence with CTP/FDA. My question is detailed, but their reply is ambiguous, but accuses my question of being unclear.
She then referred me to the TTB (877-882-3277) and was told there is no Federal tax on whole leaf tobacco.
I was then referred to the "Special occupational tax and registration (800-937-8864) to see if I was required to pay a special tax for handling tobacco and I was told "Selling whole leaf does not required an SOT registration.
I was then advised to talk to my State's auditors office for special taxes in Ohio. I was told the only requirement was to purchase a vendor's license and that any sales made within the state had to pay state sales tax.
Until the law changes, please rest assured you will not be going to jail for purchasing or selling whole leaf tobacco. That doesn't mean you're not going to go to jail, but it won't be because of tobacco.
Remember, it's not paranoia if there are files on you. It is paranoia if the files are for something other than what you think they're for.
Please continue to speak FREELY about selling, trading, buying whole leaf tobacco on this site. This is still the United States of America and until that changes...talk all you want.
Note the time frame of the replyFrom: [email protected] [mailto:[email protected]]
Sent: Wednesday, March 30, 2011 4:56 PM
To: AskCTP
Subject: Status of Whole leaf tobacco
Dear Sirs,
I am interested in providing whole leaf tobacco to consumers which will primarily be used for rolling cigars. There have been several findings by the TTB that whole leaf tobacco (that being with the midrib or stem has not been removed from the leaf) is not a tobacco product. I have been unable to find what the FDA's position is in regard to this matter. Can you provide me with a link to a web page where I can find the answer or respond to this email with an explanation? Also, if whole leaf tobacco is within the FDA's jurisdiction, can you provide me with links to forms for license applications to allow for proper distribution of this product?
Thank you,
Don Carey.
I've spoken with Kathleen Quinn from the Center of tobacco products (240-276-1717) and was told there was no Federal tax on whole leaf tobacco.<table class="messageListTable" border="0" cellpadding="0" cellspacing="0" width="99%"><tbody><tr><td colspan="2" class="messageSubject">RE: Status of Whole leaf tobacco</td></tr><tr><td class="headerLeft">From:</td><td class="headerRight" id="fromValue">CTP EXECSEC <[email protected]></[email protected]></td></tr><tr><td class="headerLeft" nowrap="nowrap">To:</td><td class="headerRight">'[email protected]' <[email protected]></[email protected]></td></tr><tr><td class="headerLeft" nowrap="nowrap">Date:</td><td class="headerRight">Wed, Apr 13, 2011 9:58 am</td></tr></tbody></table>Thank you for your March 30, 2011 email inquiring about the Food and Drug Administration’s (FDA) regulation of whole leaf tobacco.
The Federal Food, Drug and Cosmetic Act (Act), as amended by the Family Smoking Prevention and Tobacco Control Act (Public Law 111-31; 123 Stat. 1776), provides the FDA with the authority to regulate tobacco products. The term “tobacco product” means “any product made or derived from tobacco that is intended for human consumption, including any component, part, or accessory of a tobacco product (except for raw materials other than tobacco used in manufacturing a component, part of accessory of a tobacco product).” See Section 201(rr) of the Act. Section 901(b) of the Act provides that the provisions of the Act apply to all cigarettes, cigarette tobacco, roll-your-own tobacco, and smokeless tobacco and to any other tobacco products that the Secretary by regulation deems to be subject to the Act.
FDA’s authority is limited by Section 901(c)(2)(A) of the Act, which provides that the provisions of the Act do not apply to: (1) tobacco leaf not in the possession of a manufacturer of tobacco products; or (2) to the producers of tobacco leaf, including tobacco growers, tobacco warehouses, and tobacco grower cooperatives. Please see Section 900(20) and (21) for the definitions of “tobacco product manufacturer” and “tobacco warehouse” under the Act.
Based upon the limited information provided, we are unable to determine whether you or your product falls within FDA’s regulatory authority. FDA recommends that you review the statute, regulations and published guidance on our website at http://www.fda.gov/TobaccoProducts/default.htm to determine the provisions that are currently in effect for you or your product and how to comply with the Act.
Center for Tobacco Products/FDA
CTP Call Center: 1.877.CTP.1373 www.fda.gov/tobaccoproducts
She then referred me to the TTB (877-882-3277) and was told there is no Federal tax on whole leaf tobacco.
I was then referred to the "Special occupational tax and registration (800-937-8864) to see if I was required to pay a special tax for handling tobacco and I was told "Selling whole leaf does not required an SOT registration.
I was then advised to talk to my State's auditors office for special taxes in Ohio. I was told the only requirement was to purchase a vendor's license and that any sales made within the state had to pay state sales tax.
Until the law changes, please rest assured you will not be going to jail for purchasing or selling whole leaf tobacco. That doesn't mean you're not going to go to jail, but it won't be because of tobacco.
Remember, it's not paranoia if there are files on you. It is paranoia if the files are for something other than what you think they're for.
Please continue to speak FREELY about selling, trading, buying whole leaf tobacco on this site. This is still the United States of America and until that changes...talk all you want.
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