Prevent All Cigarette Trafficking Act
Prevent All Cigarette Trafficking Act (PACT) was originally passed in 2009, the PACT Act amended the existing Jenkins Act of 1949, which required interstate shippers to report cigarette sales to state tobacco tax administrators in order to combat illicit sales and tax avoidance. It regulated the mailing of cigarettes, roll your own tobacco, and smokeless tobacco products to consumers through the U.S. Postal Service; and gave the ATF authority to examine any records and cigarettes or smokeless tobacco kept on the premises.
Cigarettes
According to the PACT Act cigarettes include any roll of tobacco wrapped in paper or in any substance not containing tobacco; any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling is likely to be offered to, or purchased by, consumers as a cigarette; and Roll‐Your‐Own (RYO) tobacco.
Other Tobacco Products
Smokeless tobacco is any finely cut, ground, powdered, or leaf tobacco, or other product containing tobacco, that is intended to be placed in the oral or nasal cavity or otherwise consumed without being combusted (primarily various forms of chewing tobacco, snuff, snus, etc.)
Electronic Nicotine Delivery System (ENDS)
On December 27, 2020, the federal government included ENDS (vapor products, e-cigarettes, components, etc.) to be included on the federal PACT Act forms. This will go into effect on March 27, 2021.
The new law requires any person who advertise, offers, sells, transfers or ships vape products for profit to register with the ATF and report a summary of shipments every month. This summary should include the total quantity or volume of vape products shipped to every state. The bill mandates that the ATF produce a list of non-compliant vape sellers.
PACT Act Reports
To comply with the PACT Act, you must file a PACT Act report if you advertise, offer for sale, sell, transfer, or ship (for profit) cigarettes, smokeless tobacco, or ENDS in interstate commerce. These tobacco products must be shipped into another state, locality, or Indian nation that taxes the sale or use of cigarettes.
Interstate commerce includes commerce between any place in a State and any place outside of that State, commerce between a State and Indian Country in the State, or commerce between points in the same State but through any place outside of the State or through any Indian Country. The term “State” includes the District of Columbia, the Commonwealth of Puerto Rico, and the possessions of the United States.
The report is due no later than the 10th day of each calendar month for the previous calendar month's shipments.
PACT Act Cigarettes Report
You must file this report if you advertise, offer for sale, sell, transfer, or ship (for profit) cigarettes (other than RYO and/or ENDS) in interstate commerce.
PACT Act Other Tobacco Products (OTP) Report
You must file this report if you advertise, offer for sale, sell, transfer, or ship (for profit) Roll Your Own (RYO), smokeless tobacco and/or ENDS in interstate commerce. The Roll Your Own, smokeless tobacco and/or ENDS must be shipped into another state, locality, or Indian nation that taxes the sale or use of roll your‐ own, smokeless tobacco and/or ENDS.
For more information please visit Avior TobTax