Federal Register #RIN 1140AA31

ATF Final Rule: Regulatory Changes for Contraband Cigarettes and Smokeless Tobacco

This regulatory action from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) updates federal rules for contraband cigarettes and smokeless tobacco: - Government Buyer: - Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Department of Justice - No OEMs or vendors are involved, as this is not a procurement opportunity - Products/Services Requested: - No products or services are being purchased; the rule imposes compliance requirements on tobacco manufacturers, distributors, and sellers - Key Regulatory Changes: - Lowers the threshold for federal jurisdiction under the Contraband Cigarette Trafficking Act (CCTA) from over 60,000 to over 10,000 cigarettes - Expands CCTA coverage to include contraband smokeless tobacco - Increases record-keeping and reporting requirements for regulated parties - Clarifies exemptions for manufacturers, export warehouse proprietors, customs bonded warehouses, common carriers, state-authorized entities, and government authorities - Clarifies inspection authority and regulatory exemptions, especially for foreign-trade zones and customs bonded warehouses - Notable Requirements: - Affects compliance obligations for entities in the tobacco supply chain - No procurement, contracting, or product acquisition is involved

Description

The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) is amending Department of Justice regulations to implement provisions of the USA PATRIOT Improvement and Reauthorization Act of 2005 related to trafficking in contraband cigarettes and smokeless tobacco. The amendments reduce the threshold quantity of cigarettes triggering jurisdiction under the Contraband Cigarette Trafficking Act from over 60,000 to over 10,000, extend the Act's provisions to cover contraband smokeless tobacco, and expand record-keeping and reporting requirements. This final rule aims to address cigarette smuggling and trafficking, which pose significant financial and public health challenges.

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