TTB Addresses RYO Cigarette Machine Ruling

Anyone manufacturing tobacco products without first obtaining the necessary permit is subject to civil and/or criminal penalties. 

The federal Alcohol, Tobacco Tax and Trade Bureau (TTB) issued an announcement regarding the impact of the Aug. 20 ruling on RYO cigarette machines by the U.S. Circuit Court of Appeals for the Sixth Circuit, the National Association of Tobacco Outlets (NATO) reported. 

The TTB announcement stated that the court ruling “definitively settles the legal status of retailers that provide cigarette-making machines to customers as manufacturers of tobacco products.” 

Based on the court decision, the TTB can now enforce the law and require that any person who, for commercial purposes, makes an RYO machine available to consumers must obtain a tobacco manufacturer’s permit from the TTB, secure a bond and pay the special occupational tax, comply with recordkeeping, reporting, and inventory requirements, file tax returns and pay the applicable federal cigarette taxes.

The announcement also noted that anyone manufacturing tobacco products without first obtaining the necessary permit is subject to civil and/or criminal penalties. 

In addition, with the court decision resolving litigation that had been pending against the TTB on the RYO issue, the TTB announcement indicates that businesses can now begin obtaining a tobacco product manufacturer’s permit and such applications can be submitted electronically using the TTB’s online permit system. 

  • smokefree1988

    Eventually, when the price to continue one’s addiction to smoking (nicotine) reaches one’s individual limit, the addict will finally reach a mindset that it is time to stop and seriously decide to quit.

    That is why the RYO cigarette route needs to have a level playing field when it comes to tobacco taxes.
    As for those who have invested in RYO machines, the writing has been on the wall for a long, long time. Selling tobacco products is not a business that has a promosing future.

    For anyone who chooses to invest in a business whose products they sell are proven health hazards if used as directed, they should stop crying that governmental measures to protect the health of its consituents will put them out of business. They should realize that more and more tobacco control initiatives will be implemented going forward until the tobacco pandemic is over. The writing has been on the wall.

    Think about the eight-track tapes, eight-track tape players and the cassette tape. Anyone selling these products changed what they sold or saw they would go out of business. They could read the writing on the wall.

    For tobacco product sellers, start thinking about changing your business plan that shifts away from selling tobacco products or face the inevitable. The writing is clearly on the wall.

  • smokefree1988

    Eventually, when the price to continue one’s addiction to smoking (nicotine) reaches one’s individual limit, the addict will finally reach a mindset that it is time to stop and seriously decide to quit.

    That is why the RYO cigarette route needs to have a level playing field when it comes to tobacco taxes.
    As for those who have invested in RYO machines, the writing has been on the wall for a long, long time. Selling tobacco products is not a business that has a promosing future.

    For anyone who chooses to invest in a business whose products they sell are proven health hazards if used as directed, they should stop crying that governmental measures to protect the health of its consituents will put them out of business. They should realize that more and more tobacco control initiatives will be implemented going forward until the tobacco pandemic is over. The writing has been on the wall.

    Think about the eight-track tapes, eight-track tape players and the cassette tape. Anyone selling these products changed what they sold or saw they would go out of business. They could read the writing on the wall.

    For tobacco product sellers, start thinking about changing your business plan that shifts away from selling tobacco products or face the inevitable. The writing is clearly on the wall.

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