TOB Magazine

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age of 18 are already prohibited from
purchasing premium cigars and robust
enforcement of that requirement exists.
Premium cigars are not marketed to or
sought by those under the age of 18. FDA
admits that the studies it cites in the final
rule do not actually deal with premium
cigars, so it “create[s] [its] own analysis,”
while rejecting the objective studies pro-
vided by the Cigar Rights of America
(CRA) via public comment submission,
calling them “not persuasive.” Amazing.
Ban on Samples
The ability of manufacturers and retail-
ers to provide samples of products to
adult consumers is central to the devel-
opment and introduction of new brands
to the market. Traditionally, such events
are held in retail stores where adult cus-
tomers are afforded the opportunity to
try a cigar before deciding whether to
purchase it. Just as wine and craft beer
merchants sample products to determine
which to stock, so, too, do premium ci-
gar retailers.
The industry’s trade shows and other
large events generate significant revenue
for local economies as well. All such
events would be jeopardized by the final
rule. In its regulation covering smoke-
less tobacco, there is a system in place
for adults to receive limited free samples.
FDA fails to appropriately show why
such a system would not be effective for
premium cigars.
Pre-Market Review
Premium cigar manufacturers estimate
that a significant reduction in new prod-
uct lines will result from the final rule.
FDA’s own analysis indicates as many
as 50 percent of all cigar brands will be
eliminated from the market. We believe
that figure to be much higher—as many
as 80 percent will be eliminated.
Impact on Latin American
Trading Partners
Throughout the rulemaking process, rep-
resentatives from Nicaragua, Honduras
and the Dominican Republic expressed
their concern about the impact of regu-
lation on their countries. More than
300,000 jobs are sustained in those coun-
tries by the premium cigar industry.
Future HPHC Testing
While the final rule indicates a subse-
quent rulemaking and three year imple-
mentation window for Harmful and Po-
tentially Harmful Constituent (HPHC)
testing, this would be the final straw for
small and medium-size premium cigar
manufacturers.This expense alone would
sink most companies.
FDA Fails to
Estimate Significant Costs
Executive Order 12866 requires FDA to
assess all costs and benefits of a proposed
rule. FDA’s deeming rule fails to assess
some of the most critical costs to the pre-
mium cigar industry. FDA’s estimates for
new products, which would be subject to
regulation and testing requirements an-
nually, is significantly underestimated by
the final rulemaking.
But this story is not over.
On April 9, the U.S. House of Repre-
sentatives Committee on Appropriations
passed language that prohibits FDA from
advancing regulations on cigars and, in the
same hearing, the committee changed the
“predicate date”from February 15, 2007 to
the time of the final rule.This is where the
battle also lies. This budget needs to pass
the full U.S. House of Representatives,
and then pass the U.S. Senate.
That is where you come in. Every
member of Congress needs to hear from
every constituent who has a passion for
great cigars, each of whom should state
that they expect support in the passage of
the Appropriations Committee language
to protect the premium cigar industry.
CRA will be posting the contact in-
formation for every member of Congress
that is needed to advance this legislation,
while all interested parties are consider-
ing every legal and political option, to
defend the simple ability to enjoy a cigar.
Go to to learn more. Be
a cigar voter. TBI
J. Glynn Loope is
executive director
of Cigar Rights of
America.
That is where
you come in.
Every member of
Congress needs to
hear from every
constituent who
has a passion for
great cigars, each
of whom should
state that they
expect support in
the passage of the
Appropriations
Committee
language to
protect the
premium cigar
industry.
CRA’S CIGAR CORNER BY J. GLYNN LOOPE
84
TOBACCO BUSINESS INTERNATIONAL
JULY/AUGUST 2016