Typically, higher user fees can be correlated to greater demand for certain products. In this case, cigars may be in high demand in the U.S. but as manufacturers are burdened with having to pay more in user fees to produce its products, that cost is often passed off on its customers and consumers, who must in return pay more for these products.
To review the FDA’s tobacco user fee assessment formulation by product class, click here. For all the latest legislation and FDA news impacting the tobacco industry, click here.