SMALL CIGARS WRAPPED IN
"RECONSTITUTED TOBACCO," ETC.
Manufacturers of cigars
Purpose. The purpose of this industry circular is to set forth
information concerning rolls of tobacco wrapped in material such as
is variously referred to by the industry as "reconstituted tobacco,"
"homogenized leaf tobacco," "tobacco sheet," etc., some of which
products are being taxpaid at the rate applicable to small cigars.
Background. On the basis of our examination and analysis of
samples of such "reconstituted tobacco," etc., as have been submitted
to this office as contemplated by Industry Circular No. 594, we have
made individual determinations that rolls of tobacco wrapped in material
represented. by certain samples submitted may be taxpaid at the rate
applicable to small cigars (weighing not more than three pounds per
thousand), provided that such product must be prominently labeled,
on the front of the package, as cigars and marketed as such product.
Examination of some of these products which are wrapped with
"reconstituted tobacco," etc., discloses that they are being made
and distributed so as to simulate cigarettes. Evidence of such
simulation consists of some or all of the following: use of
cigarette-type wrapper, use of cigarette-type filler, use of
cigarette-type filters, use of cigarette-type packages, and absence
of or inconspicuous reference to the product as "cigars" in labeling
Tax Status. Manufacturers of cigars and cigarettes are advised
that this Service is taking steps to reconsider the tax status of
such products for the purpose of determining whether they should be
taxed as cigarettes.
Inquiries. Inquiries in regard to this industry circular
should refer to its number and be addressed to the Director, Alcohol
and. Tobacco Tax Division, Washington 25, D. C., Attention: Tobacco
Dwight E. Avis
Director, Alcohol and Tobacco Tax Division.