C.F.R. » Title 7 » CHAPTER XIV—COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE › SUBCHAPTER B—LOANS, PURCHASES, AND OTHER OPERATIONS › PART 1463—2005-2014 TOBACCO TRANSITION PROGRAM › Subpart A—Tobacco Transition Assessments

7 C.F.R. § 1463.7

Division of class assessment to individual entities

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(a) In order to determine the assessment owed by an entity, that portion of the national assessment assigned to each class of tobacco will be further divided at the entity level. The amount of the assessment for each class of tobacco to be paid by each domestic manufacturer and importer of tobacco products will be determined by multiplying:

(1) With respect to each class of tobacco, the adjusted market share of such manufacturer or importer; by

(2) The total amount of the assessment for that class of tobacco for the calendar year quarter.

(b) For purposes of determining the volume of domestic sales of each class of tobacco products and for each entity, such sales shall be based upon the reports filed by domestic manufacturers and importers of tobacco with the Department of Treasury and the Department of Homeland Security and shall correspond to the quantity of the tobacco product that is removed into domestic commerce by each such entity:

(1) For cigarettes and cigars, on the number of cigarettes and cigars reported on such reports;

(2) For all other classes of tobacco, on the number of pounds of those products.

(c) In determining the adjusted market share of each manufacturer or importer of a class of tobacco products, except for cigars, CCC will determine to the fourth decimal place an entity's share of excise taxes paid of that class of tobacco product during the immediately prior calendar year quarter. With respect to cigars, CCC will determine the adjusted market share for each manufacturer or importer of a class of tobacco products based on the number of such products removed into domestic commerce.

(d) The amount of a quarterly assessment owed by a domestic manufacturer or importer of tobacco products that must be remitted to CCC by the end of a calendar year quarter is based upon the application of the manufacturer's or importer's adjusted market share to the amount of the national assessment that has been allocated to one of the six specified tobacco product sectors under § 1463.5. As provided in § 1463.3, this adjusted market share is determined by the actions of such manufacturer or importer in a prior calendar year quarter. Accordingly, this amount must be remitted to CCC whether or not the manufacturer or importer is engaged in the removal of tobacco or tobacco products into commerce in the calendar year quarter in which it receives notification of the amount of assessment owed to CCC.

[70 FR 7011, Feb. 10, 2005, as amended at 70 FR 17158, Apr. 4, 2005]
Notes of Decisions
Cited in 9 cases, 2008–2015 · leading case: Swisher International, Inc. v. Schafer
Sort: Relevance Newest Treatment
Swisher International, Inc. v. Schafer (2008) ca11 · cites it 2× “7 C.F.R. § 1463.7 (d). For cigarette and cigar sellers, the individual assessments are determined by the number of cigarettes and cigars sold.”
Single Stick, Inc. v. Johanns (2009) dcd · cites it 2× “§ 518d(h); 7 C.F.R. § 1463.7 . The CCC then determines an individual manufacturer or importer’s pro rata share “by dividing the number of cigars from [the] particular manufacturer or importer by the total number of cigars [placed] in the domestic market [ (“per-stick method”) ].”
United States v. Prime Time International Company (2013) dcd · cites it 2× “§ 518d(h); 7 C.F.R. § 1463.7 . USDA then determines an individual manufacturer or importer’s pro rata share by dividing the number of cigars from a particular manufacturer or importer by the total number of cigars placed in the domestic market.”
R.J. Reynolds Tobacco Company v. United States Department of Agriculture (2015) dcd “§■ 518d(e)(l); 7 C.F.R § 1463.7)). The letter further acknowledged that the agency is required to base its calculation of domestic volume not only on excise tax and.”
United States v. Native Wholesale Supply Co. (2011) nywd “§ 518d(h)(l), (2); 7 C.F.R. § 1463.7 (b). A manufacturer or importer may appeal its assessment to the Secretary, using “any information that is available, including third party data on industry or individual company sales volumes,” and the Secretary must “make any revisions…”
United States v. Tourtellot (2012) ncmd · cites it 2× “§ 518d(f); 7 C.F.R. § 1463.7 . “Market share” is “the share of each manufacturer or importer of a class of tobacco product .”
International Tobacco Partners, Ltd. v. United States Department of Agriculture (2012) nyeb “§§ 5702 (j); 7 C.F.R. 1463.7. Therefore, under the statute, the transaction giving rise to liability for FE-TRA Assessments is the “removal” of tobacco products from customs or inventory and making them available for distribution in the U.”
Prime Time International Co. v. United States Department of Agriculture (2014) cadc “See 7 C.F.R. § 1463.7 . Appellant Prime Time, a manufacturer of small cigars, challenged the Per Stick Rule in district court, arguing that the Rule’s equal treatment of small and large cigars violated subsection (e)’s “pro rata basis” requirement.”
Prime Time International Company v. Johanns (2009) dcd · cites it 2× “§ 518d(h); 7 C.F.R. § 1463.7 . The CCC then determines an individual manufacturer or importer’s pro rata share “by dividing the number of cigars from [the] particular manufacturer or importer by the total number of cigars [placed] in the domestic market [(“per-stick method”)].”
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